Buy gas at Costco? Beware of this scam

A hand placing a credit card into the card reader of a gas pump.

Image source: Getty Images

Refueling for less is one of the ways people save money at costco (even if it occasionally means waiting in a line of cars to do it). On average, Costco gas is less expensive than its competitors in the area.

However, what makes this benefit so unique is that you must scan your membership card at the pump. It can be your physical card or a digital card through the Costco app.

Either way, no card, no gas. This is where the scam begins.

Oh no, I forgot my membership card!

“Damn, my phone died and I can't scan my membership card. Can you scan your membership so I can gas up and charge my phone?”

The request might seem innocent enough. We've all had our phone go off at the wrong time or forgotten our wallet without realizing it until we got to the register. Unfortunately, offering a kind gesture could get you into a bit of trouble if the person on the receiving end is up to no good, like trying to extract every potential dollar of stolen money. credit cards.

(According to online lore, the core of this scam is that Costco does not require zip codes to use a credit card, unlike other gas stations. It also helps muddy the waters, since the police have an easy line to you.) .

Your purchases are linked to your account.

Part of scanning your card for access means that every time you fuel up at a Costco gas station, that purchase is linked to your Costco account. This includes information about the payment method you use.

Stolen credit cards are reported and then authorities track purchases made. If your Costco account is linked to purchases made with a stolen credit card, you'll probably have some serious explaining to do.

In the best case scenario, they charge you for the stolen gas and the police don't show up. At worst, you'll have to prove that you didn't steal the credit card in the first place. But even if it ends up in the best-case scenario, you still have to admit to Costco that you violated the terms of your membership agreement.

Costco can (and does) close accounts for breaking the rules

Costco's membership rules are very clear about not allowing other people to use your membership card. Additionally, Costco has been cracking down on membership sharing over the past year.

If you are caught sharing your membership, and yes, scanning your card that time for that person counts, Costco can, and probably will, close your account and cancel your membership.

Costco also has every right to ban you from rejoining. And then you would never eat another Costco hot dog again.

How to properly share your membership

Costco's rules are pretty strict, but there are still some ways you can share the Costco love with your friends and family.

  1. If you are a primary member (or account manager), you can assign a free membership card to a member of your household.

  2. Each cardholder can bring up to two guests to the store on one trip. However, only the member can make purchases.

  3. Members can purchase Costco Shop Cards, which are gift cards to Costco. A Shop Card gives non-members entry to Costco and the ability to shop, but they will need to use the Shop Card to pay.

What to do if you are approached at the pump

Never scan your membership card to have someone else make a purchase. Instead, you can advise the person in difficulty to contact the station attendant.

If the person is actually a member and has a real problem, the assistant can help them. If the person is not a member, they will probably slip away.

It's great to want to help our neighbors, but let's not forget common sense as well. Refueling at Costco is rarely life or death, so the person can return home to get their card or head to another gas station. You don't need to put your membership at risk.

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Add in the competitive 0% interest period and it's no wonder we named this card the Best Credit Card with no annual fee.

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We firmly believe in the golden rule, which is why editorial opinions are solely our own and have not been previously reviewed, approved or endorsed by included advertisers. The Ascent does not cover all the offers on the market. The Ascent's editorial content is independent of The Motley Fool's editorial content and is created by a different team of analysts.Brittney Myers has no position in any of the stocks mentioned. The Motley Fool ranks and recommends Costco Wholesale. The Motley Fool has a disclosure policy.

Buy gas at Costco? Beware of this scam was originally published by The Motley Fool

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