2 Truths and a Lie About Costco

Joining Costco is a great way to reap savings on everything from groceries to household essentials to larger purchases like electronics and furniture. And if you shop there frequently, you may find that your credit card bills shrink.

But do you really have the inside scoop on Costco? Here are a few key things you need to know.

Truth No. 1: You can return almost anything

Costco is very big on customer service and satisfaction. To that end, it maintains a very flexible return policy.

In a nutshell, you can bring almost any item back to Costco and get a full refund, no questions asked, when there's a quality issue. This extends to half-eaten food or clothing that's clearly been worn.

Now you should know that some purchase categories come with restrictions when it comes to returns. For electronics, you'll generally need to make your return within 90 days to get refunded. And there's a process to follow for returning specific types of jewelry. Also, while Costco does take most items back without a hassle, it does not accept returns on alcohol or cigarettes.

Truth No. 2: You're not locked into your membership

A basic Costco membership costs $60 a year, while an upgraded executive membership costs $120. The extra $60 for your executive membership will give you access to 2% cash back on your Costco purchases.

But if, at any time, you find yourself unhappy with your Costco membership, you can simply cancel it and get a prorated refund. And similarly, if you upgrade to an executive membership and decide that it's not worth the extra cost, you can downgrade to a basic membership and get refunded the difference.

And the lie: Costco always has the best prices

Costco's prices are unquestionably competitive. But does that mean that Costco will always have the cheapest price? Not necessarily.

Right now, for example, Costco only offers a single one-piece swimsuit option online for girls that costs $15.99. But if you go to a store like The Children's Place, right now, you can find a host of girls' swimsuits for $12.48. As another example, Costco is selling a 12-pack of playing cards online for $21.99. Amazon has a 12-pack available for $11.18.

Now one issue you might encounter when comparing prices between Costco and other retailers is that Costco often has special-run items manufactured expressly to be sold in its stores. To put it another way, you may not find the exact same item at Costco as you would at Target or on Amazon.

Furthermore, Costco prices can vary by region. And, they can vary between the online price and the in-store price. The point, though, is that Costco's prices aren't always the cheapest, so it pays to do some comparison shopping.

This especially applies when it comes to groceries. Supermarkets run sales all the time, and it's more than possible to reap savings by purchasing a sale item at your regular grocery store than buying it at Costco.

All told, Costco is a great place to shop. But make sure you know the real deal so you can make the most of your experience there.