Costco App for iOS Now Supports Digital Membership Cards, Allowing for Wallet-Free Shopping Trips

[konqerror]

One also does not pay for a membership at Panera or Walgreens. The reason why Costco does it this way is to prevent misuse, the QR code is timed and changes for security purposes so one cannot take a screenshot and send it to someone else to use it. Membership fees is where Costco and Sams makes they money.

Which is a great reason why they should have implemented it through contactless wallet, not a barcode.

Wallet uses a NFC VAS protocol featuring public-key cryptography to authenticate both sides of the transaction. Contactless wallet cards cannot be duplicated, whereas their changing QR code (actually Data Matrix), simply limits the time a copy can be used to several hours. Somebody can merely text a screenshot as needed.

Simply put, Panera and Walgreen's implementation is more secure than Costco's.

 

[dontwalkhand]

Which is a great reason why they should have implemented it through contactless wallet, not a barcode.

Wallet uses a NFC VAS protocol featuring public-key cryptography to authenticate both sides of the transaction. Contactless wallet cards cannot be duplicated, whereas their changing QR code (actually Data Matrix), simply limits the time a copy can be used to several hours. Somebody can merely text a screenshot as needed.

Simply put, Panera and Walgreen's implementation is more secure than Costco's.

I just don’t think Costco is going to be able to implement it with the AS/400 system they’re using. Though AS/400 is powerful, these cool things take a lot of time to implement because it’s such a complicated system. Even these QR code membership cards alone probably required massive reworking of the AS/400 system.

 

[travoose]

Huh, I use the Panera app with Apple Pay about once a month and have never seems this. I’ll try it next time.

At Walgreens when at the register I just get the Wallgreen reward card always in my Apple wallet, use it like Apple Pay to register my rewards number, they use Apple Pay to make the charge. It’s two actions but I can decide if I want to use my regards number and give them my personal information.

Unless something changed...my watch just pulls up the Panera rewards card, which is in my Wallet when I activated Apple Pay, it does its thing, then shows me my CC to complete the transaction...hence, I don’t even need the app on my phone to get the rewards, which makes it much easier at the register.

 

[nutmac]

Screenshot the QR code. Wait a few hours or a day, re-open the app. You’ll notice the QR code is different. I’ve uploaded what happened with mine.

They do this to prevent you from sharing screenshots of your card to your friends, requiring they pony up for their own membership.
View attachment 849765
Notice the top of the QR code is different. In the screenshot version vs the regular version.

Interesting find, although probably hackable.

My Costco card's QR code has this format:

960000<member number>000<some random numbers>

<some random number> is probably a time-based algorithm. Lots of trouble when an accompanying portrait accomplishes the same thing.

 

[MisterSavage]

Why would anybody use a CU issued credit card? The rewards are so meager. Compared to the rewards (4% on gas/3% on food&travel/2% costco/1% all other) on the Free Costco Visa, they should switch.

If their CU issued Credit Card is their oldest credit card and is free, they should just put it in their home safe or desk or wherever (to preserve their fico* history/score), and get and use the Costco Visa card.

*this is based on family member’s FICO scores of 820 - 850.

Oh I'm with you it. We actually got a laugh about that message because the card is "sock drawered" and unused. It's just kept for credit history (no annual fee) to enhance fico score.

 

[nukenight]

Lousiana has them. I don't live there, but if you know anyone who does, have them download the app "LAWallet" it has been officially issued by the state, and valid anywhere that accepts a valid LA ID, including police. And to quash fears, police don't touch your phone, they just scan it with a device.
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For now, they have the QR code scanners, and the NFC readers needed for both the Costco Card app, and the Apple Pay cards.

[doublepost=1564031157][/doublepost]I have my Louisiana license in my phone and it works great!

 

[seecoolguy]

But still need physical card for gas pumps?

Boo

 

[liberte1776]

Good but better would be to integrate membership validation WITH Apple Pay! Also needs Apple Watch app for integration of both.

 

[BlandUsername]

But still need physical card for gas pumps?

Their pumps get skimmed a lot in E. TN, They need to go to the same format as Exxon and Apple pay in the app for gas.

 

[mustanger66]

Nice
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Great! Now just tell me where stuff is in the store via the app! I hate it when they move staples I always get!!!

They move stuff around to make you walk around the entire store. By doing this you are more likely and will buy stuff you did not inte8to buy in the first place.

 

[MisterSavage]

Nice
They move stuff around to make you walk around the entire store. By doing this you are more likely and will buy stuff you did not inte8to buy in the first place.

I was going to say the same thing. This is done on purpose.

 

[lartola]

Good but better would be to integrate membership validation WITH Apple Pay! Also needs Apple Watch app for integration of both.

The Apple Watch app isn't necessary. Just as long as the iPhone app can generate a pass that can be stored in wallet, they've got apple watch users covered too. Once a pass is stored in wallet on the iPhone, it will be accessible in wallet on the Apple Watch too. And if the pass is NFC enabled, like Walgreens' balance rewards card, it will also be immediately accessible from Apple Pay on the watch by double-clicking the side button. That's how it works with Walgreens without the need for the Apple Watch app (thought Walgreens does have one, it's only for pill reminders; the Wallet pass for the rewards card is actually generated using the iPhone app as described above).
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Their pumps get skimmed a lot in E. TN, They need to go to the same format as Exxon and Apple pay in the app for gas.

I heard some of the Costco gas stations do have NFC contactless readers installed. The skimming is probably affecting those using physical cards because the physical card readers on the pumps still have to be magnetic stripe. There is no chip reader that can be installed on a gas pump or vending machine.

 

[dontwalkhand]

The Apple Watch app isn't necessary. Just as long as the iPhone app can generate a pass that can be stored in wallet, they've got apple watch users covered too. Once a pass is stored in wallet on the iPhone, it will be accessible in wallet on the Apple Watch too. And if the pass is NFC enabled, like Walgreens' balance rewards card, it will also be immediately accessible from Apple Pay on the watch by double-clicking the side button. That's how it works with Walgreens without the need for the Apple Watch app (thought Walgreens does have one, it's only for pill reminders; the Wallet pass for the rewards card is actually generated using the iPhone app as described above).
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I heard some of the Costco gas stations do have NFC contactless readers installed. The skimming is probably affecting those using physical cards because the physical card readers on the pumps still have to be magnetic stripe. There is no chip reader that can be installed on a gas pump or vending machine.

The gas pump readers already have NFC and barcode readers as well as a chip reader. The chip part just isn’t enabled yet. Those Verifone readers that Costco uses on the pump have chip/NFC

 

[TheShadowKnows!]

To pay at Costco. This is just the membership card, you would still need to pay for your things .

You do not need the separate membership card at all.
If you have the Costco Citi Rewards card, it is all you need. It also bears your picture.

[I have an executive membership which returns me 2% of all purchases, with a couple of $100's net even after the $110 annual fees. But that is my use case.]

 

[phillytim]

I think it’s something to do with the same payment system as Walmart. If we enable Apple Pay then that means Walmart has to. We have a new system for returns at membership that is piggy backing off of the Walmart system and corporate tells us a lot of our things come from Walmart. So I’m sure it’s something to do with them.

Yeah Walmart went big-time into the "CurrentC" system; and Sam's is tied to Walmart, so it stands to reason.

I believe CurrentC also had its grips in with Best Buy, Target, CVS, etc., but thankfully those companies have seen the light and backed out and went into Pay!

Sam's guy here also!

 

[bigjnyc]

I wish they would just add the ability to add membership and reward cards to your wallet on their own.... I have zero interest in having the costco app on my phone, but would love to just have the card in Apple wallet.

 

[code-m]

Which is a great reason why they should have implemented it through contactless wallet, not a barcode.

Wallet uses a NFC VAS protocol featuring public-key cryptography to authenticate both sides of the transaction. Contactless wallet cards cannot be duplicated, whereas their changing QR code (actually Data Matrix), simply limits the time a copy can be used to several hours. Somebody can merely text a screenshot as needed.

Simply put, Panera and Walgreen's implementation is more secure than Costco's.

The question one must ask is if NFC VAS is available worldwide and capable to be implemented at all warehouses.

Canada and I believe Europe had chip and pin for years compared to USA magstrip swipe for transactions. Japan has had NFC longer than most countries. There is a high disconnect between countries as there are laws and regulations to follow. USA has recently adopted chip and pin and NFC is scattered about many states.

I understand that this is not a credit or debit card per se, however to Costco this is a big to move to digital membership as most were not sure if it was needed or would work properly and has been in development for years. I am sure once NFC VAS is being considered as a possible replacement in the future or something else.

Remember that due to its vast global demographics, many age groups either don’t have/own a smart phone, don’t use it to its full extent or know or card to bother with digital cards. Some prefer simplicity of a physical card, some don’t and some like the option of both, this is where this fits. Though I don’t mind digital cards I prefer physical ones as the digital one is a backup in my situation.
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I wish they would just add the ability to add membership and reward cards to your wallet on their own.... I have zero interest in having the costco app on my phone, but would love to just have the card in Apple wallet.

Most companies make they revenue through online shopping, vice physical stores. The app is designed with the digital card to entice shopping online for convenience and wide selection.

 

[phillytim]

I wish they would just add the ability to add membership and reward cards to your wallet on their own.... I have zero interest in having the costco app on my phone, but would love to just have the card in Apple wallet.

Apple wallet needs the Costco app, or any particular business's app, to get a card into wallet.

Just the way it is.

 

[lartola]

Apple wallet needs the Costco app, or any particular business's app, to get a card into wallet.

Just the way it is.

Actually no, generating the pass in a particular business's app is not the only way to get a pass card into Wallet. It may be the easiest way, but it's not the only way. If you open Wallet, scroll down to the bottom, and tap on 'edit passes' you will then find an option at the bottom of the editable list of passes that allows you to add a pass by simply scanning a code from a physical pass card (usually that would be a QR code, but maybe it supports barcodes too, I don't know). It's kinda hidden in recent iOS versions, but the ability to add passes by scanning a code has existed from day one in the Passbook app and still does in its successor, the current Wallet app. Costco could use that feature to let people add their Costco Membership to Wallet without needing to download the Costco app.

 

[CrzyP]

Cool. Just need to have the option to add it to the Wallet app now.

 

[bigjnyc]

Apple wallet needs the Costco app, or any particular business's app, to get a card into wallet.

Just the way it is.

Yeah I know how it currently works. But there is a way that they can just have the card itself scanned in and saved in wallet. the Phone has NFC capabilities so it can be done. Apple just chooses not to do it for whatever reason.

 

[lartola]

The gas pump readers already have NFC and barcode readers as well as a chip reader. The chip part just isn’t enabled yet. Those Verifone readers that Costco uses on the pump have chip/NFC

Is Costco putting verifone mx 915 readers (like the ones inside the store) near the pumps? That's what they're doing here in Mexico now that recent law changes have allowed Costco to also open gas stations here (which also makes Costco the only gas stations in Mexico not to use standalone wireless terminals). I bet, though, that NFC is disabled on those things since Costco hasn't enabled NFC even inside the store and only takes chip cards and MST Samsung Pay, just like all but three of the other large retailers operating in Mexico.

In any case, my point was that there isn't any chip reader that can replace the built in magnetic stripe readers currently used on regular gas pumps such as those found at most other gas stations such as Exxon, Mobile, Shell, Valero or any other out there. On those pumps only contactless readers can be installed, and the magnetic stripe readers will have to remain in use as long as any non-contactless physical cards still exist. And the same goes for vending machines, where the card reader also needs to built in to the machine: no chip reader exists that can be installed in such a scenario, only contactless readers exist.
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Yeah I know how it currently works. But there is a way that they can just have the card itself scanned in and saved in wallet. the Phone has NFC capabilities so it can be done. Apple just chooses not to do it for whatever reason.

Apple does support adding passes to Wallet by simply scanning a printed code (usually QR, but maybe even a barcode, see my previous post on how to access this kinda hidden feature), and it's the merchants that choose not to use the feature for whatever reason.

 

[dontwalkhand]

Is Costco putting verifone mx 915 readers (like the ones inside the store) near the pumps? That's what they're doing here in Mexico now that recent law changes have allowed Costco to also open gas stations here (which also makes Costco the only gas stations in Mexico not to use standalone wireless terminals). I bet, though, that NFC is disabled on those things since Costco hasn't enabled NFC even inside the store and only takes chip cards and MST Samsung Pay, just like all but three of the other large retailers operating in Mexico.

In any case, my point was that there isn't any chip reader that can replace the built in magnetic stripe readers currently used on regular gas pumps such as those found at most other gas stations such as Exxon, Mobile, Shell, Valero or any other out there. On those pumps only contactless readers can be installed, and the magnetic stripe readers will have to remain in use as long as any non-contactless physical cards still exist. And the same goes for vending machines, where the card reader also needs to built in to the machine: no chip reader exists that can be installed in such a scenario, only contactless readers exist.
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Apple does support adding passes to Wallet by simply scanning a printed code (usually QR, but maybe even a barcode, see my previous post on how to access this kinda hidden feature), and it's the merchants that choose not to use the feature for whatever reason.

Those existing Gilbarco readers already support chip. Safeway is the only store that uses the chip reading part though. It’s the same readers that’s been there even on these ancient pumps (the pumps are the exact same in Canada as a matter of fact which has EMV working at Costco and contactless as well) when EMV is enabled it’ll lock the card in the pump.

Mx915 at the pump is laughable. What are they doing down in Mexico?

 

[BrentD]

This.

Though Costco accepts MasterCard branded debit cards, a Mastercard debit card inside of Apple Pay will still not work, as Apple Pay forces everything through as "credit" which the card reader picks it up as a MasterCard credit card, and declines it. A visa debit will work just fine however.

False. Costco accepts any Visa branded card, not just their own.
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The only credit card you can use at Costco is specifically the Costco Visa. Other than that, you're limited to debit cards.

False. Costco accepts any Visa branded card, not just their own.

 

[lartola]

Those existing Gilbarco readers already support chip. Safeway is the only store that uses the chip reading part though. It’s the same readers that’s been there even on these ancient pumps (the pumps are the exact same in Canada as a matter of fact which has EMV working at Costco and contactless as well) when EMV is enabled it’ll lock the card in the pump.

Mx915 at the pump is laughable. What are they doing down in Mexico?

I guess they wanted to keep the gas station in the same payment system as the store, but I don’t get it either. Every single other gas station in the country uses standalone wireless terminals such as ingenico’s move 2500 or ict 220 and they can easily accept contactless payment. I’ve used apple pay at more gas stations in Mexico than in the US due to that.