That Old iPhone in Your Drawer Could Pay for Your Next Costco Run!
Yes, that old iPhone collecting dust in your junk drawer can turn into Costco money. Through Costco's Trade-In Program, run by the trade-in company Phobio, you get a free online quote, mail in an eligible phone, tablet, laptop, smartwatch or other device at no cost, and receive a Digital Costco Shop Card once it passes inspection. The whole process usually takes about two to three weeks.
The program is making the rounds on Instagram again, and plenty of LA parents are asking us whether it's legit. It is, but the fine print matters. We went straight to Costco's official page, Phobio's Costco quote tool and Phobio's own trade-in terms, so you know what pays, what doesn't, and the one mistake that can turn your trade into $0.
Key Takeaways
What it is: Costco's online trade-in program, powered by Phobio. You're paid with a Digital Costco Shop Card, not cash.
What you can trade: Phones, laptops, tablets, smartwatches, Apple desktops and Apple TV, plus action cameras and bike computers from select brands.
Top payouts: Up to $935 for a phone, $3,950 for a laptop, $970 for a tablet and $931 for a smartwatch, per Phobio's Costco quote tool on Oct. 4, 2026. Most older devices quote far less.
Cost: Free. Shipping supplies and the label are included.
Timing: About two to three weeks from quote to Shop Card.
Membership: Not required to trade in, and non-members can shop with a Costco Shop Card.
Biggest catch: Turn off Find My (or any activation lock) first. Locked devices are valued at $0 and recycled, not returned.
Where to start: Costco's Trade-In Program
How Costco's Trade-In Program Works, Step by Step
Step 1: Get an instant quote. Head to Costco's Trade-In Program page and click Start Your Trade-in Now, which opens Phobio's Costco quote tool. Choose the device type, brand, model and storage size, then answer a few questions about its condition. You'll see an estimated value right away.
Step 2: Get your shipping supplies. Print a prepaid shipping label, or have a box with prepaid supplies and packing instructions mailed to you. Costco says the box takes three to five business days to arrive. Phobio says some trades also qualify for QR code drop-off, where a carrier associate packs and labels the device for you.
Step 3: Wipe it and ship it. Follow the instructions to erase your device, pack it and drop it off with the carrier. Shipping is free. Phobio's terms say your device needs to arrive within 21 days of accepting the quote, or the offer can be revised or withdrawn.
Step 4: Inspection. Phobio inspects the device and wipes all data. If it matches your description, Phobio honors the quote and queues your payout.
Step 5: Get your Digital Costco Shop Card. Costco says the card arrives by email in about three to five business days, loaded with your trade-in value and ready to use in the warehouse or on Costco.com.
What Devices Can You Trade In at Costco?
Costco's landing page still spotlights Apple gear, but when we ran through Phobio's Costco quote tool on Oct. 4, 2026, it listed eight device types and a long list of brands. Here's what we found, with the maximum payout the tool showed for each:
Phones (up to $935): Apple, Samsung, LG, Motorola, Google, Huawei and OnePlus
Laptops (up to $3,950): Apple, Asus, HP, Acer, Dell, Lenovo, Microsoft and MSI
Tablets (up to $970): Apple, Samsung, Lenovo, Microsoft, Sonim and Zebra
Smartwatches (up to $931): Apple, Samsung, Motorola and Garmin
Desktops (up to $3,210): Apple
Media players (up to $5): Apple TV
Action cameras (up to $200): Garmin, DJI, Insta360 and GoPro
Cycling computers (up to $300): Garmin, Wahoo, Hammerhead and Bryton
Those are best-case numbers for the newest, highest-storage models in top shape. A phone that's a few years old will usually quote much lower, so plug in your exact model before you start planning your shopping spree.
One thing that surprised us: Costco's page still pictures a HomePod, and the viral posts list HomePods too, but the quote tool we checked had no speaker category at all. If your device type isn't in the tool, it isn't eligible right now.
Parent tip: Kids' outgrown iPads and old school laptops are great candidates. Get a quote before handing a device down to a younger sibling. Sometimes the trade-in value covers a big chunk of a new, kid-proof tablet.
Before You Ship: How to Prep Your Device So You Don't Lose Money
Back it up. Every device is erased during inspection, and Phobio says nothing left on it can be recovered.
Turn off Find My and sign out of your accounts. Phobio's terms say devices that arrive Activation Locked are adjusted to $0 and recycled rather than returned, unless you remove the lock after they notify you.
Make sure it's paid off. Finance-locked devices with a carrier balance aren't eligible.
Make sure it powers on. Phobio says devices that don't turn on aren't eligible.
Skip devices with third-party repairs. Replacement screens and other non-original parts make a device ineligible, per Phobio's FAQ.
Pop out the SIM card. If you use an eSIM, there's nothing to remove.
Keep the accessories. Chargers, cases, watch bands and boxes aren't needed, and anything you send generally isn't returned.
Answer the condition questions honestly. Cracks, dents or other damage found at inspection will lower your quote.
Phobio's trade-in FAQ has step-by-step help for removing Activation Lock, reinstalling a laptop's operating system and packing each type of device.
What Happens If Phobio Lowers Your Quote?
This is the part most viral posts skip. If inspection shows your device doesn't match what you described, Phobio can send a revised offer. According to Phobio's trade-in terms, you then have 14 days to accept or decline it, and if you don't respond, the new offer is automatically declined.
If you decline, Phobio ships the device back to you for free, but it erases the device first, and that same serial number can't be traded in through the program again. Once your device arrives, the trade is final unless Phobio contacts you about a mismatch.
Online reviews are a mix of smooth, easy trades and frustrated customers whose values dropped after inspection. Our advice: snap photos of every side of the device (with the screen on) before you pack it, and ask for a drop-off receipt when you hand over the box. That gives you proof of condition if you ever need to dispute anything.
Also good to know: Costco puts its name on the program, but Phobio runs it, so questions about your trade go to Phobio's customer support, not your local warehouse.
How to Spend a Digital Costco Shop Card (and Where You Can't)
Your payout arrives by email as a Digital Costco Shop Card. You can use it at regular checkout lanes in U.S. warehouses and on Costco.com, and you don't need a membership to spend a Shop Card.
The catch: Costco's Digital Shop Card help page says digital cards can't be redeemed at self-checkout, food court kiosks or Costco gas stations. Want to use it for gas or a hot dog combo? Bring it to your local warehouse and use it to buy a physical Shop Card of the same value.
Parent tip: Earmark the card for something specific, like holiday gifts, birthday party supplies or a bulk run of school snacks, so the trade-in money doesn't quietly disappear into your regular grocery bill.
Is Costco's Trade-In Program Worth It?
If you already shop at Costco and want a free, no-hassle way to clear out the junk drawer, it's a solid option. It's not the best fit if you want cash. Selling a device yourself often brings in more money, and Apple, Best Buy and Amazon all run their own trade-in programs with different payout types.
Our tip: run the same device through two or three trade-in tools on the same day, since values change over time. Lock in the best offer, then ship within the 21-day window so your quote holds.
Costco also points out that trading in gives old electronics a second life and reduces demand for conflict minerals. That makes it a great moment to talk with kids about e-waste and why old gadgets don't belong in the trash. If a device doesn't qualify, Phobio recommends taking it to a certified electronics recycler.
📬 Get LA's Best Family Fun in Your Inbox
Join fellow LA parents who get our free weekly guide to things to do with kids: weekend events, free activities, and seasonal ideas.
Takeaway
Costco's Trade-In Program is a legit, free way to turn old phones, tablets, laptops and smartwatches into Costco spending money, as long as you prep the device right. Get your quote, turn off Find My, ship within 21 days, and remember the digital Shop Card won't work at self-checkout, the food court or the gas pump. Compare a couple of quotes first, and that dusty drawer could cover this month's snack run.
Frequently Asked Questions
Do you need a Costco membership to use the trade-in program?
No. You don't need a membership to trade in a device through Costco's program with Phobio. You're paid with a Digital Costco Shop Card, and non-members can use Shop Cards to shop in U.S. warehouses at regular checkout and on Costco.com.
How long does a Costco trade-in take?
Plan on about two to three weeks. Costco estimates three to five business days for each stage: getting your shipping supplies, shipping the device to Phobio, and receiving your Digital Costco Shop Card by email after it passes inspection.
Can I trade in a cracked iPhone at Costco?
Often, yes. Phobio says many damaged devices are still eligible if they power on, though the value will be lower, so describe the damage accurately. Devices with replacement screens or other third-party repairs aren't eligible, and devices that won't turn on can't be traded in.
Can I use a Costco trade-in Shop Card for gas?
Not directly. Digital Costco Shop Cards can't be used at Costco gas stations, self-checkout or food court kiosks. Take the digital card to your local warehouse and use it to buy a physical Shop Card of the same value, which you can then use for gas.
What happens if I forget to turn off Find My before shipping?
Phobio will notify you with instructions to remove the Activation Lock so the device can be re-inspected. If the lock isn't removed, the device is adjusted to a $0 value and recycled for data security, and it won't be returned to you.
❤️ You May Also Like
Comments