Costco Takes Back Almost Anything. These 4 Exceptions Can Cost You

Costco’s return policy is the stuff of legend. Ask any member and you’ll hear some version of “they take back anything.”

And Costco does promise members a “risk-free 100% satisfaction guarantee” covering both the membership itself and what they buy. But read the next line on its own Member Privileges page: “Limited exceptions apply.”

Those exceptions are where people get burned. And the next three months are prime time for it: big-ticket gifts going under the tree, gift returns in January, maybe a membership you’re wondering whether to keep.

One thing to know up front. Costco’s own web pages mostly send you to “the return policy” without spelling out the exceptions, and its rules can change. So before a big purchase, check the terms on the product page itself.

Here are four exceptions worth knowing before you buy.

1. TVs and big appliances come with a 90-day clock

This is the big one. The “return anything, anytime” reputation doesn’t apply to a new TV or refrigerator.

Costco’s current product pages for TVs and refrigerators say returns are accepted within 90 days.

Notice the fine print. The clock starts on the date you receive the item, not the date you ordered it. If a TV lands on your porch on Nov. 27, you’ve got until about Feb. 25 to change your mind. One delivered Dec. 10 is good until about March 10.

That sounds generous until you realize how many people buy a TV in November, wrap it, and don’t plug it in until Christmas morning. You’ve already burned a month.

Big appliances add a wrinkle. You can’t exactly push a French-door fridge back through the warehouse doors. Costco’s appliance pages tell you to call Member Services at 800-955-2292 to return or exchange one.

My advice: open the box and test anything with a screen or a motor as soon as it arrives. Put the 90-day deadline on your calendar the same day.

2. A big diamond has to pass inspection first

Costco sells some serious jewelry, and its return terms for big stones are stricter than for a sweater.

Bring back a piece with a center diamond of 1 carat or more, and Costco’s current product pages say the warehouse may need extra time to verify the stone — two to five business days — before it approves your refund.

And there’s a catch: The refund depends on the piece coming back undamaged and unaltered. Resize the ring or reset the stone, and you may be out of luck.

If an engagement ring is on your holiday list, hold off on resizing until you’re sure. And keep the diamond’s grading report that comes with it somewhere safer than the gift bag.

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3. Your online refund may come back as store credit

Buying on Costco.com this season? The good news is that Costco says items bought online can be returned at any of its more than 800 warehouses worldwide. That can spare you the hassle of shipping something back.

The less advertised part is in Costco.com’s terms of sale. Refunds normally go back to the card you paid with — but Costco reserves the right to use another payment method instead, and it names a Costco Shop Card as an example.

That matters. Money back on your credit card is money you can spend anywhere. A Shop Card is money you can spend only at Costco.

If you return something you bought online and the refund matters to you, ask at the counter how it’s being issued before you leave.

See Also:

8 Genius Moves to Make When the Price of Everything Is Going Up

4. Canceling an Executive membership can shrink your refund

Costco’s guarantee covers your membership, too: If you’re unhappy, you can get your fee back. But Executive members face a catch.

Executive members earn a 2% reward on most purchases.

Costco’s Executive Rewards page says that to get your upgrade fee back, you have to downgrade to Gold Star or Business, or cancel. Any reward you’ve already been issued or earned is subtracted from that refund.

Run the numbers. Say you spend $250 a month at Costco — $3,000 a year, worth about $60 in rewards. Subtract that from the $65 upgrade fee, and you’d get back just $5.

Not a fortune, but it’s your money. If you’re weighing whether to keep paying, start with these reasons to think twice before renewing your Costco membership.

And if you’re set up for auto-renewal, Costco says you need to cancel at least 72 hours before your renewal month begins, or you’ll be charged.

Bottom line

Costco’s return policy really is better than most. But “better than most” isn’t the same as “no rules,” and the rules tend to show up on the expensive stuff.

A few habits keep you on the right side of them:

• Test electronics and appliances the day they arrive, and calendar the 90-day deadline.
• Save grading reports, warranties and receipts for anything pricey.
• Don’t alter jewelry until you’re sure you’re keeping it.
• Before a big purchase, read the return terms on the product page or ask at the membership counter.

And returns are only half the game. Watch the price after you buy, too: some big stores will refund the difference if the price drops.

Learn to read the secret code on Costco’s price tags to know when to buy. If you’re shopping elsewhere this season, know that Amazon’s holiday return window comes with its own traps.