Costco is betting that a new checkout system can make shopping faster, with transactions taking just seconds. But while the high-tech stations are winning over some members, others say the change creates a frustrating new problem that may have shoppers questioning whether the speed is worth it.
Costco’s new checkout system is designed for speed
Costco is testing a new checkout system at warehouses across the country as the retailer looks for ways to make the payment process quicker and more efficient for members.
The rollout comes as Costco continues making changes in 2026, from opening massive new warehouse locations to updating its food court offerings. The retailer has not disclosed exactly how many of its more than 650 warehouses currently have the new checkout technology, but shoppers have begun spotting the stations at their local stores, according to Good Housekeeping.
The system, known as “automated pay stations” or “cloud checkout,” uses large digital screens designed to handle Costco’s often bulky merchandise. The technology is designed to cut the actual payment process to roughly eight to 10 seconds.
But the technology isn’t doing all the work.
How Costco’s 8-second checkout works
Instead of scanning their own merchandise, shoppers are assisted by a Costco employee before they reach the payment station.
While members wait in line, an employee scans their Costco membership card and then scans every item in their cart. Once shoppers reach the automated payment station, their purchases have already been entered into the system.
The customer simply scans their membership card again, and the items appear on the large screen almost immediately. They can then complete the transaction using a payment card, although cash is not accepted at the automated stations.
The goal is to eliminate much of the time normally spent scanning and processing a large Costco haul.
CEO Ron Vachris said during an earnings call earlier this year that the pilot program had already produced significant improvements in transaction times.
“Early results show this is improving the flow of traffic, and we’ve received great member feedback,” Vachris said.
Costco shoppers are divided over the new checkout
Costco’s new checkout system has received mixed reactions from members. While some shoppers appreciate the faster payment process and say the automated stations make checkout noticeably more convenient, others remain skeptical about whether the technology actually saves time overall.
One of the biggest concerns is that shoppers still have to wait in line before reaching the payment stations. Because Costco employees scan each customer’s membership card and merchandise before they get to the kiosk, the new system does not eliminate the initial wait. Members may still spend time waiting for an employee to become available and process the shoppers ahead of them.
The reliance on Costco staff has also prompted some customers to question why they cannot scan their own purchases using handheld devices, similar to a traditional self-checkout experience. For these shoppers, the technology may make the final payment step significantly faster without reducing the amount of time spent waiting in line.
Still, the positive feedback suggests the system is delivering some of the speed Costco intended. The mixed response shows that while an eight-second transaction may sound impressive, shoppers ultimately care about how quickly they can get through the entire checkout process.
Source:
The US Sun