new York
CNN
—

For the first time since 2017, Costco customers are paying more for their annual membership.

The retailer announced in July that membership fees in the U.S. and Canada would increase by $5 to $65 per year for three of its plans: Gold Star, Business and Business Add-On. The changes will apply to new members who sign up on or after Sept. 1, as well as renewals that occur after that date.

The price of Costco’s premium Executive Membership also rose by $10 to $130 per year. However, these members will soon be able to earn a maximum of $1,250 in rewards per year, up from the previous $1,000.

Costco had previously stated that the company expects 52 million memberships to be affected, of which just over half are executive members.

Annual fees have been one of Costco’s most profitable areas, helping the company offset the cost of low prices. Last year, Costco generated $4.6 billion in revenue from membership fees, an 8% increase from 2022.

The fee increases come as Costco, like other streaming companies, takes other measures to ensure fewer non-subscribers use other customers’ memberships.

Costco (COST) is cracking down on member scroungers with stricter policies and requires its customers to scan their membership cards when entering stores.

“In the coming months, member scanners will be deployed at the front door of your local warehouse,” Costco said in a previous statement. “Once deployed, all members will be required to scan their physical or digital membership card by holding the barcode or QR code to the scanner before entering.”

Costco recommends that members whose cards do not have a photo bring a valid photo ID, but advises customers to go to the membership counter and have their photo taken.

Costco’s new policy also requires all guests to be accompanied by a valid credit card holder when entering stores, making it more difficult for non-members to sneak in with cards that don’t belong to them.