Costco vs. Sam's Club: Who Has the Better Return Policy?

Costco and Sam's Club aren't worlds apart. Both warehouse clubs can help you manage your personal finances by offering you good deals, discounts when you buy in bulk, and an end to "buyer's remorse" with super flexible return policies. 

However, if we're going to be nit-picky, then Costco's return policy is slightly better than Sam's Club, mainly because it allows you to return a few items that Sam's Club doesn't. The race is uber close, however, so let's look at both clubs' return policies more closely and see where Costco is slightly more flexible. 

What are the clubs' return policies? 

First, let's start on some common ground. Both clubs have a 100% satisfaction guarantee policy, which lets you return most items at any time for a full refund with few exceptions. This includes your membership: If you're not satisfied with a Sam's Club or Costco membership, you can get your money back. 

Which club has fewer exclusions? 

Costco and Sam's Club exclude certain items from its "full refund" policy. As far as which big-box retailer excludes less, Costco has a slight lead. 

Both clubs limit refunds on electronics and appliances to 90 days. But Costco has a leg-up on Sam's Club in that it also lets you return cellphones within 90 days (unless stated differently on your carrier contract), while Sam's Club gives you 14 days to return a phone. 

As far as full exclusions go, Sam's Club's website lists numerous items you cannot return, such as gift cards, prepaid cards, tickets, custom-made items (like a coffee mug with your cat's face on it), and prescriptions. Costco also excludes a number of these items, such as custom-made products, prescriptions, and airline or entertainment tickets. However, it doesn't have a company-wide exclusion of third-party gift cards and may leave it up to the warehouse location itself to decide whether to refund you. 

Costco also has a slight advantage on hearing aid returns. The warehouse club will give you a 180-day trial period for hearing aids. Sam's Club, on the other hand, will give you 90 days, unless there's a warranty that's longer. 

Finally, neither club guarantees you can return alcohol or cigarettes. Since many states prohibit consumers from returning alcohol (since a return is basically a sale and you would need a liquor license to do that), the companies leave it up to the warehouse to decide. The same applies to batteries and tires, which may have a product-specific return policy. 

Do you need a receipt to make returns? 

Costco warehouses will accept your returns with or without a receipt. As long as you purchased the item with your membership card, Costco employees can find it using your ID or number. Sam's Club can also process returns without a receipt, though, as it states on its website, the warehouse "prefers" you have one and will "do its best" to process a return without it. 

So which club has the better return policy? 

As you can see, the race is close. Both Costco and Sam's Club allow near unlimited returns on most items, with few exceptions. However, when we get down to the nitty-gritty, Costco has a slightly better return policy for cellphones, gift cards, and hearing aids. 

As a side note, Costco also has far more stories of bizarre items it has allowed its members to return. Such tales are woven from the threads of Reddit (so take them with a grain of salt), but supposedly Costco has let people return empty cases of wine, a 13-year-old fish, and a Christmas tree -- in January. I'm not saying that should sway your decision, but if you often find yourself midway through a package of cheese and want to return it, Costco might be your place.