logo
Costco cards good for 'hot dogs & rotisserie chickens,' not airports, TSA says

Costco cards good for 'hot dogs & rotisserie chickens,' not airports, TSA says

USA Today4 hours ago

Costco cards good for 'hot dogs & rotisserie chickens,' not airports, TSA says The deadline for travelers to obtain a Real ID for domestic flights and accessing federal facilities was May 7.
Show Caption
Hide Caption
Real ID explained: what it is, why it matters, and how to get yours
Real ID requirements: everything you need to know about getting compliant for travel and ID.
Costco memberships come with a variety of perks, including access to discounted products and services; however, the Transportation Security Administration (TSA) recently debunked the rumor that customers' warehouse club cards substitute for a Real ID.
TSA proclaimed in an X post on Wednesday, June 4: "We love hotdogs & rotisserie chickens as much as the next person but please stop telling people their Costco card counts as a REAL ID because it absolutely does not."
TSA Pacific spokesperson Lorie Dankers told SFGate that the rumor of Costco cards being accepted as official identification pops up every year or so. When people try to use their warehouse club cards at airports, for instance, it could lead to delays and travel headaches, she added.
Travel: You don't need a passport at these 7 US destinations that feel international
As of May 7, travelers need a Real ID or other acceptable identification for domestic flights and accessing federal facilities. Those who haven't gotten one yet may be scrambling to figure out what they need to do before booking their next trip. One thing is for certain: They should probably leave their Costco membership cards at home.
Here are the acceptable forms of identification, according to the TSA, as well as some background on how the most recent version of the Costco card rumor originated.
Acceptable identification at the TSA checkpoint
According to the TSA, valid forms of ID at airports include:
Real ID-compliant driver's licenses or other state photo identity cards issued by the Department of Motor Vehicles (or equivalent) A temporary driver's license is not an acceptable form of identification.
State-issued Enhanced Driver's License (EDL) or Enhanced ID (EID)
U.S. passport
U.S. passport card
DHS trusted traveler cards (Global Entry, NEXUS, SENTRI, FAST)
U.S. Department of Defense ID, including IDs issued to dependents
Permanent resident card
Border crossing card
An acceptable photo ID issued by a federally recognized Tribal Nation/Indian Tribe, including Enhanced Tribal Cards (ETCs)
HSPD-12 PIV card
Foreign government-issued passport
Canadian provincial driver's license or Indian and Northern Affairs Canada card
Transportation Worker Identification Credential (TWIC)
U.S. Citizenship and Immigration Services Employment Authorization Card (I-766)
U.S. Merchant Mariner Credential
Veteran Health Identification Card (VHIC)
How did the Costco card rumor come back up?
Food blog Chowhound claimed in the initial version of an article titled "How Your Costco Card Could Save You At The Airport," that people's Costco cards could pass through TSA because it is considered a photo ID. The article cited Reddit, where users claimed their warehouse club cards helped them through airport security when they forgot or lost their regular ID.
On June 4, the day TSA debunked the rumor on social media, Chowhound issued an update to the article, saying, "A previous version of this article stated TSA is likely to accept a Costco membership card in lieu of a valid form of ID. TSA does not explicitly state you can use a Costco card as a form of identification, explaining, 'The TSA officer may ask you to complete an identity verification process which includes collecting information such as your name and current address to confirm your identity. If your identity is confirmed, you will be allowed to enter the screening checkpoint, where you may be subject to additional screening.'"
The update concludes with: "Now with the Real ID requirements, (a Costco card) is even less likely to get you through TSA quickly or successfully."
If someone tried using a Costco card at an airport, they would likely be pulled from the TSA checkpoint line for further questioning about other personal information, such as their two previous home addresses, Dankers told SFGate.
Contributing: Chad Murphy/ Akron Beacon Journal

Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Attention Costco shoppers: 5 money saving tips and tricks that everyone should know, according to experts
Attention Costco shoppers: 5 money saving tips and tricks that everyone should know, according to experts

Yahoo

time3 hours ago

  • Yahoo

Attention Costco shoppers: 5 money saving tips and tricks that everyone should know, according to experts

Costco is widely recognized as a go-to for bulk shoppers looking to stock up on food and groceries, home essentials and more. More than 10 million Canadians have Costco memberships that give them access to its gas station, a members-only pharmacy, Costco Travel, Costco Services, home improvement and more. But are shoppers making the most of their memberships to get best deals possible? Nichole Schaubroeck and Tina Chow are two Canadian content creators who have each earned hundreds of thousands of followers by sharing the ins and outs of saving money while you shop. 'It's very hard to find a good deal, so anyway we can save, maybe it's not as extreme as it used to be, it's still good," said Schaubroeck who runs the account Coupon Cutie, in an interview with Yahoo Canada. Keep reading to learn Chow and Schaubroeck's best tips and trips on how to navigate Costco like a pro. According to Schaubroeck, Costco's price tags are a good predictor of whether or not an item will go on sale. Items that end in .97 are likely at their lowest price, making it prime time to stock up on what you need. Another hidden hack is to look for what Costco shoppers call the 'death star,' an asterisk located in the upper right-hand corner of an item's tag. 'All this is telling you is that this item is either no longer going to be at Costco or it won't be back until next year,' said Schaubroeck. Chow, who created the account Costco Lovers Canada, said that although the foot traffic in the store is constantly changing, sales seem to follow a schedule. 'I know that most sales end on a Sunday... new sales will begin the following week,' said Chow. There's also what people refer to online as "Markdown Mondays" — when new items go on sale. While this is not a Costco-official event, it still creates a buzz for shoppers to find cost-friendly deals. 'They [Costco] are always doing markdowns," she added. Additionally, Chow noted that Costco is known for 'following the trends of what's happening in the market,' which can help attract shoppers who are looking for products for a certain occasion. For example, it's not uncommon for Costco to have a sale on hamburger buns, ketchup, mustard and relish ahead of a long weekend. Chow also recommends shopping as the weather changes to take advantage of out-of-season products at lower prices. According to Costco customer service, shoppers are entitled to 'risk-free, 100 per cent satisfaction guarantee', meaning that the majority of purchased products can be returned and refunded at any time (excluding electronics and diamond jewelry). This allows shoppers to test out products and see if it is the right fit for them. 'If I'm going out and trying a $700 Dyson [hair dryer]... I want to be able to know that I can return it,' said Chow. 'I will always go to Costco and pay more on a product for their return policy.' Costco also honours price adjustments on merchandise if the price drops within 30 days of the original purchase and the product is still in the store's warehouse. Schaubroeck added that this flexibility is a large reason as to why Canadians turn to Costco for their shopping. 'It's always nice to have that reassurance when buying something, that no matter what happens, they will take it back for you,' she said. One perk to owning a Costco membership is that it can be used worldwide at any location, which can come in handy when going on vacation. Chow said she often uses her membership when travelling to help save on food and snacks. It's even handy for shopping and saving on souvenirs and local food. Many Costco shoppers may not know that there's an official Costco app meant to enhance shopping experiences. The Costco app allows you to shop and save using online-only prices, check warehouse inventory and local gasoline prices, refill prescriptions at Costco's pharmacy, create your own shopping list in-app and more. The app also allows shoppers to receive updates on sales promotions and product entering the store, a perk that Chow said is a 'huge secret' amongst Canadians. 'There are app-exclusive savings,' she said. 'If you follow Costco on Instagram, there are also exclusive savings available there." Schaubroeck also highlights another app called Checkout 51, a platform that displays cash-back offers on Costco merchandise. While this does not apply to all products, Schaubroeck said it's an incentive worth checking out.

Attention Costco shoppers: 5 money saving tips and tricks that everyone should know, according to experts
Attention Costco shoppers: 5 money saving tips and tricks that everyone should know, according to experts

Yahoo

time3 hours ago

  • Yahoo

Attention Costco shoppers: 5 money saving tips and tricks that everyone should know, according to experts

Costco is widely recognized as a go-to for bulk shoppers looking to stock up on food and groceries, home essentials and more. More than 10 million Canadians have Costco memberships that give them access to its gas station, a members-only pharmacy, Costco Travel, Costco Services, home improvement and more. But are shoppers making the most of their memberships to get best deals possible? Nichole Schaubroeck and Tina Chow are two Canadian content creators who have each earned hundreds of thousands of followers by sharing the ins and outs of saving money while you shop. 'It's very hard to find a good deal, so anyway we can save, maybe it's not as extreme as it used to be, it's still good," said Schaubroeck who runs the account Coupon Cutie, in an interview with Yahoo Canada. Keep reading to learn Chow and Schaubroeck's best tips and trips on how to navigate Costco like a pro. According to Schaubroeck, Costco's price tags are a good predictor of whether or not an item will go on sale. Items that end in .97 are likely at their lowest price, making it prime time to stock up on what you need. Another hidden hack is to look for what Costco shoppers call the 'death star,' an asterisk located in the upper right-hand corner of an item's tag. 'All this is telling you is that this item is either no longer going to be at Costco or it won't be back until next year,' said Schaubroeck. Chow, who created the account Costco Lovers Canada, said that although the foot traffic in the store is constantly changing, sales seem to follow a schedule. 'I know that most sales end on a Sunday... new sales will begin the following week,' said Chow. There's also what people refer to online as "Markdown Mondays" — when new items go on sale. While this is not a Costco-official event, it still creates a buzz for shoppers to find cost-friendly deals. 'They [Costco] are always doing markdowns," she added. Additionally, Chow noted that Costco is known for 'following the trends of what's happening in the market,' which can help attract shoppers who are looking for products for a certain occasion. For example, it's not uncommon for Costco to have a sale on hamburger buns, ketchup, mustard and relish ahead of a long weekend. Chow also recommends shopping as the weather changes to take advantage of out-of-season products at lower prices. According to Costco customer service, shoppers are entitled to 'risk-free, 100 per cent satisfaction guarantee', meaning that the majority of purchased products can be returned and refunded at any time (excluding electronics and diamond jewelry). This allows shoppers to test out products and see if it is the right fit for them. 'If I'm going out and trying a $700 Dyson [hair dryer]... I want to be able to know that I can return it,' said Chow. 'I will always go to Costco and pay more on a product for their return policy.' Costco also honours price adjustments on merchandise if the price drops within 30 days of the original purchase and the product is still in the store's warehouse. Schaubroeck added that this flexibility is a large reason as to why Canadians turn to Costco for their shopping. 'It's always nice to have that reassurance when buying something, that no matter what happens, they will take it back for you,' she said. One perk to owning a Costco membership is that it can be used worldwide at any location, which can come in handy when going on vacation. Chow said she often uses her membership when travelling to help save on food and snacks. It's even handy for shopping and saving on souvenirs and local food. Many Costco shoppers may not know that there's an official Costco app meant to enhance shopping experiences. The Costco app allows you to shop and save using online-only prices, check warehouse inventory and local gasoline prices, refill prescriptions at Costco's pharmacy, create your own shopping list in-app and more. The app also allows shoppers to receive updates on sales promotions and product entering the store, a perk that Chow said is a 'huge secret' amongst Canadians. 'There are app-exclusive savings,' she said. 'If you follow Costco on Instagram, there are also exclusive savings available there." Schaubroeck also highlights another app called Checkout 51, a platform that displays cash-back offers on Costco merchandise. While this does not apply to all products, Schaubroeck said it's an incentive worth checking out.

Why Costco Stock (COST) May Be a Smarter Investment Than Big Tech
Why Costco Stock (COST) May Be a Smarter Investment Than Big Tech

Yahoo

time4 hours ago

  • Yahoo

Why Costco Stock (COST) May Be a Smarter Investment Than Big Tech

Costco (COST) has long been a market favorite, but its current valuation has even the most bullish investors raising eyebrows as the company trades near all-time highs. Trading at earnings multiples that outpace some of the world's biggest tech giants, it's fair to ask: how can a warehouse selling pallets of toilet paper and rotisserie chickens possibly justify such a steep premium? At first glance, the numbers don't add up. Comparing Costco to tech companies indicates a rather inflated valuation for the wholesaler. Easily unpack a company's performance with TipRanks' new KPI Data for smart investment decisions Receive undervalued, market resilient stocks right to your inbox with TipRanks' Smart Value Newsletter Timid growth projections, razor-thin margins, and a business model that hasn't changed much in decades don't exactly scream innovation. And yet, Costco continues to climb—largely, in my view, due to one key factor: risk perception. Because the company's business model is so heavily anchored in predictable, recurring revenue from membership fees, its earnings stream is exceptionally stable. That stability arguably justifies the stock's lofty valuation—and forms the backbone of my bullish thesis, even if there's little to no margin of safety. I agree with Costco's critics—those who are skeptical about a warehouse full of assorted goods trading at a forward P/E of 58, a multiple literally higher than tech giant and AI trailblazer Nvidia. For a company like Costco, which has grown revenue at a ~10% CAGR over the past five years and operating income by 15%—yet is only expected by analysts to grow revenue at a 5% CAGR over the next five—it really doesn't make much sense, at first glance, for the business to trade at such a steep premium. But here's what a lot of market participants miss when analyzing companies: valuations based on net earnings are heavily anchored to one key factor—risk. And unlike earnings, there's no single, universally accepted measure of risk. Some investors focus on beta, while others consider regulatory threats or macroeconomic exposure. Ultimately, each investor views the situation through their own lens. That's where Costco stands out as a rare case: a recurring revenue model outside of the tech sector. Customers pay an annual membership fee—ranging from $60 to $120 in the U.S.—just to shop in its warehouses. Costco likely converts nearly all of that directly into operating profit (though the company doesn't explicitly disclose this), which allows the business to be highly profitable even while selling goods at razor-thin margins. In the most recent quarter, membership income rose 10% year-over-year, with a staggering 93% renewal rate in North America. That kind of brand loyalty and perceived value creates a business model with very little risk of earnings volatility. And because of that, Costco functions like a defensive stock, offering low risk and a high degree of predictability in returns. So, while the valuation may look stretched on the surface, this level of stability and cash flow certainty arguably justifies a premium multiple. While only about 2% of Costco's total revenue comes from membership fees, those fees account for more than half of the company's total operating income. At this kind of scale, there's simply no other retailer that can pull off a high-volume, low-margin model quite like the Issaquah, Washington-based warehouse giant. Main Street Data indicates that Costco's revenues are inching higher while membership fees remain a staple. That's why, even during periods of weak consumer spending, Costco tends to remain highly profitable—not just because of its membership model, but because it consistently gains market share from competitors. By keeping margins razor-thin on discretionary items, and with shoppers naturally shifting toward essentials during times of financial stress, Costco puts pressure on rival retailers that simply can't match its pricing without cutting into their own profitability. Take Q3, for example: Costco's comparable sales rose 8% year-over-year to $62 billion, while peers like Target (TGT) saw comparable sales shrink and were forced to revise earnings guidance downward. This highlights how Costco isn't just weathering macroeconomic headwinds—it's actually growing through them. In other words, macro risks seem to have a much lighter impact on a company like Costco. While Costco's relatively low-risk business model may warrant a valuation premium, it's worth exploring what an appropriate stock price might look like under simplified assumptions. For this analysis, I'll estimate an equity value for Costco using a basic perpetuity-based discounted cash flow (DCF) model. Let's begin with the fact that, in fiscal year 2024, Costco generated approximately $4.8 billion in membership fee revenue. While this isn't equivalent to free cash flow, it serves as a reasonable proxy for recurring operating cash flow due to its stable and high-margin nature. With Costco's current market capitalization at approximately $470 billion, we can reverse-engineer the valuation. If we assume a 6% discount rate—reflecting the company's relatively low risk profile despite the 10-year Treasury yield sitting around 4.4%—and a perpetual growth rate of 5%, the implied equity value is approximately $480 billion, or about $1,083 per share. This closely aligns with Costco's current share price. These assumptions appear fairly reasonable and suggest that Costco's valuation is justified under optimistic, yet not unrealistic, conditions. However, using a more conservative 7% discount rate, while keeping other assumptions constant, would cut the implied equity value significantly, roughly in half. In summary, while Costco does not appear overvalued under favorable scenarios, the current valuation leaves little room for error. A meaningful margin of safety may only emerge if macroeconomic conditions shift, such as a recession prompting lower risk-free rates and, in turn, greater tolerance for elevated valuation multiples. Out of the 25 analysts who have covered COST in the past three months, 17 rate the stock as a Buy, while the remaining eight call it a Hold. So, while the overall sentiment is moderately bullish, the average price target of $1,096.36 implies ~8.5% upside from the current share price over the next twelve months. Given the strength and stability of Costco's underlying business model, its premium valuation multiples appear justifiable. At present, there are no significant concerns that would challenge a constructive outlook on the stock. However, it's important to note that the current valuation offers limited—if any—margin of safety. As such, I maintain a cautious Buy rating on Costco. While near-term upside may be constrained, the company remains well-positioned to deliver steady, long-term compound growth. Disclaimer & DisclosureReport an Issue

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into the world of global news and events? Download our app today from your preferred app store and start exploring.
app-storeplay-store