3 Lies You've Been Told About Your Costco Membership

Joining Costco is a great way to save money on groceries and household essentials, as well as one-off purchases you might make during the year, like appliances or electronics. But it's important to familiarize yourself with the rules of a Costco membership. And it's also important to know which myths not to believe. Here's some false information to be aware of.

1. You can take as long as you need to make returns

Costco has an extremely generous return policy. For the most part, you can bring any item back at any time for a refund. But you should know that there are exceptions to this rule.

First, Costco will not take back cigarettes and alcohol. It also won't let you return gold bars or silver coins.

Somewhat surprisingly, Costco Shop Cards (which are gift cards redeemable at Costco) aren't refundable, either -- though you can use one on any Costco purchase, so you likely won't need to return one. And you also cannot return other retailers' gift cards or event tickets.

Costco also has a limited return window for certain products. Electronics and major appliances need to be brought back within 90 days for a full refund.

2. You can return completely eaten food

One of the best aspects of Costco's return policy is that you can return food on the basis of not liking it or not meeting your personal standards for quality -- even if you've already started to consume the item. But one thing you can't do is return completely eaten food.

To get a refund on a grocery purchase -- perishable or otherwise -- you need to bring back 50% of the item at least. However, in some cases, you don't have to bring food back to the store if it's visibly spoiled. Costco will usually allow you to take a picture of the item in question and use that as proof for refund purposes.

So let's say you buy a carton of strawberries and the next morning, it's full of mold. You don't necessarily have to keep those moldy berries in your fridge an extra day until you can get back to Costco. Generally, taking a picture showing visible mold will suffice.

3. You'll have your membership canceled for making too many returns

You may have heard that if you make too many Costco returns, you'll risk having your membership canceled. It's a concern that tends to be prevalent among Amazon Prime members, too.

The reality is that yes, you can end up having your Costco membership revoked if you abuse the store's return policy. But usually, this has to be pretty extreme before Costco takes that step.

Even if you end up making one return per month or more, your membership is probably safe. Rather, it's a series of abusive returns, and constant returns, that may cause you a problem. And by "abusive" returns, we're talking about consistently bringing back partially consumed food on the basis of it "not tasting good," or bringing back clothing that's clearly been worn and stained.

If you're going to pay for a Costco membership, it's important to know the rules. Keep these points in mind so you're able to navigate the store's return policy without having to lose money or worry about having your membership canceled.