Right now, somewhere in your house, there’s a drawer. You know the one. It’s got a tangle of charging cables from 2016, an old iPhone with a cracked screen protector, maybe a Samsung Galaxy you swore you’d sell on eBay but never did. That drawer has been sitting there, collecting dust and guilt in equal measure.
Here’s something most people don’t know: Costco wants that stuff. And they’ll pay you for it. Not in coupons, not in “points” that expire before you remember to use them. Actual money on a Costco Shop Card — up to $2,550, depending on what you’ve got.
How This Program Actually Works
Back in 2019, Costco quietly partnered with a company called Phobio, a tech-recycling outfit based in Atlanta that was founded in 2010. Together, they launched an online trade-in program that most Costco shoppers have never heard of. There’s no mention of it on the giant signs hanging in the warehouse. No employee at the entrance is handing you a flyer about it. It just… exists, online, waiting for you to stumble across it.
The process is dead simple. You go to Costco’s trade-in page, pick your device type, answer a few questions about brand, model, storage, and condition, and you get an instant quote. If you like the number, you print out a prepaid shipping label (or have Phobio mail you a box), pack your device, and ship it off. Phobio inspects it at their facility, wipes all your data, and within three to five business days after inspection, you get a digital Costco Shop Card via email loaded with your payout.
The whole thing takes roughly two to three weeks from start to finish. Not instant gratification, but a lot less painful than creating a Swappa listing and fielding lowball offers from strangers.
What They’ll Take (And What They Won’t)
The program accepts six categories of devices: phones, laptops, tablets, smartwatches, desktops, and media players. And it’s not just Apple stuff anymore — though the website still leans heavily in that direction. You can trade in devices from Samsung, Google, LG, Motorola, Huawei, OnePlus, Dell, HP, Lenovo, Microsoft, Acer, Asus, MSI, and Garmin.
The payouts vary wildly. A high-end newer laptop in great shape can fetch hundreds of dollars — sometimes crossing the $1,000 mark. Phones and tablets from the last few years can land you anywhere from $20 to $900 or more depending on the model. Smartwatches from Apple, Samsung, and Garmin are accepted too, with payouts up to around $1,100 for premium models.
Then there’s the bottom of the barrel. Media players like the Apple TV? They’ll give you up to $5. Five bucks. That’s barely worth finding a box to ship it in. You’d honestly be better off listing it on eBay or giving it to your neighbor’s kid.
One firm rule: the device has to power on. If it’s completely dead and won’t turn on at all, Phobio won’t accept it. Damaged devices can still qualify, but the trade-in value drops. And generally, devices need to be from around 2017 or newer to get any kind of quote, with some categories requiring even more recent models.
You Might Not Even Need a Membership
This is where it gets interesting. There’s some conflicting information floating around about whether you need a Costco membership to use the program. Some sources say you absolutely don’t need a membership to trade in your device or to spend the Shop Card. Others say that nonmembers can technically trade in items and receive a digital Shop Card, but might have trouble actually using it since you normally need a membership to shop at Costco.
Here’s what seems clear: anyone can go through the Phobio trade-in process online and receive a digital Shop Card. The membership question really comes into play when you try to spend it. If you’re not a member, you can use the Shop Card on Costco.com. Walking into a warehouse without a membership card is a different story. If you’re already a member, none of this matters — you’re golden.
The Digital-Only Card Change Nobody Talked About
Costco quietly made a change to the program that’s worth knowing about. They discontinued the option to receive a physical Costco Shop Card. Now, you only get a digital card sent to your email.
Why does this matter? Because a digital Shop Card can’t be used at self-checkout stations, Costco gas pumps, food court kiosks, or the Costco car wash. You can only use it at regular checkout lanes in the warehouse and for online purchases. So if you were planning to turn your old iPad into a tank of cheap Costco gas, that’s not happening. You’ll need to go through a cashier.
The silver lining: the monetary value on the Shop Card never expires. So there’s no rush to spend it once you’ve got it.
How to Avoid Getting a Lower Offer Than Expected
The number one complaint people have with this program — and it’s a fair one — is getting a revised offer after shipping their device. Here’s how that happens: you describe your phone as being in “good” condition, ship it off, and then Phobio’s inspectors find a scratch you forgot about, a battery that doesn’t hold a charge like it should, or screen burn-in you didn’t mention. They’ll revise the offer downward.
The good news is that if you don’t accept a revised offer within 14 days, Phobio will send your device back to you at no cost. That’s actually better than some competitors — ItsWorthMore, for example, automatically accepts revised offers on your behalf if you don’t respond within just three days. With Phobio, you at least get your stuff back if the deal doesn’t feel right.
A smart move: take photos and notes of your device’s condition before you ship it. Document any scratches, dents, or screen issues. That way, if there’s a dispute, you’ve got receipts. Also, your quote from Phobio is valid for 21 days, so don’t sit on it. Ship it fast.
Prep Your Device Before Shipping (Or Risk Getting It Sent Back)
This trips people up more than anything. If you ship a phone with Find My iPhone still turned on, or an activation lock still active, Phobio will reject it and ship it right back to you. That’s weeks wasted.
Before you box anything up: factory reset the device, sign out of your Apple ID, Google account, or Samsung account, and turn off Find My Phone or Find My Mac. Phobio says they’ll wipe all your data as part of their process, but you should still do it yourself first. Belt and suspenders.
If your device has any outstanding payments on a carrier plan, that can also be a problem. The device needs to be fully paid off. And if you’ve got the original charger or accessories, include them — some categories pay a bit more when you do.
The Math on Your Junk Drawer
Let’s get real about what the average person might actually get. You’re probably not sitting on a near-mint MacBook Pro worth $2,550. But think about what you DO have lying around. An old iPhone 12 that got replaced two years ago? That could be $100-$200. A Samsung Galaxy S21 in decent shape? Similar range. An old iPad collecting fingerprints on the coffee table? Maybe $50-$150 depending on the model.
None of these numbers will change your life. But stack a couple of them together — an old phone here, a retired laptop there — and you’re looking at a Costco haul that could cover groceries for a month. That’s real money for stuff you weren’t using anyway.
And electronics lose value fast. The phone that’s worth $150 today might be worth $40 in a year. This is not wine — it does not get better with age. If you’re going to trade it in, do it now.
Is Costco’s Program the Best Option?
Honestly? Not always. If your goal is to squeeze every last dollar out of your old device, you’ll probably do better selling it yourself on eBay, Facebook Marketplace, or Swappa. But those options come with their own headaches — listing fees, lowball messages, meeting strangers in parking lots, the whole deal.
Costco’s program trades top dollar for convenience. You answer some questions, print a label, drop it at the post office, and get a Shop Card in a couple of weeks. No haggling, no drama. The estimates are roughly in line with what Amazon’s trade-in program offers, so you’re not getting ripped off.
Target and GameStop run similar programs. Apple and Samsung let you trade in devices toward new purchases from their stores. Best Buy does electronics recycling too. But here’s the Costco advantage: that Shop Card works on groceries, toilet paper, rotisserie chickens, laundry detergent — actual things you need. An Apple Store credit only works at the Apple Store. A Best Buy gift card only works at Best Buy. A Costco Shop Card works in a place where most people are already spending hundreds a month.
So go open that junk drawer. Count up the old devices. Add up the rough value in your head. Then decide whether they’re better off gathering dust or turning into a cart full of groceries. The answer is pretty obvious.
