Costco has a major update on the gift cards that have become useless — and how to get refund
Everyone loves to use gift cards for purchases, but it might not always be the most reliable method of payment. Costco shoppers, who are also gift card holders, recently realized this as the retailer recalled select gift cards that were obsolete. Synergy Restaurant Gift Cards, a multi-restaurant card program also known as Synergy World, sold these gift cards. The company is staring down the barrel of a Chapter 7 bankruptcy filing currently.
As per a report in People, Costco had sent a product notice to its members who had purchased Synergy gift cards between Oct. 27, 2025, and Jan. 26, 2026. The notice stated that the company had ceased operations on January 31, 2026. The retailer understands that its members may be severely affected by the development. So, they decided to offer refunds to members who currently hold a Synergy World gift card. Those who are unable to use the remaining balance on their gift cards could return them to their nearest Costco for a refund.
“Costco records indicate that you, or one of your add-on members, have purchased Synergy Restaurant Gift Cards between October 27th, 2025, and January 26th, 2026. Unfortunately, we were recently notified by the Synergy Gift Card Network/Synergy World that they would be ceasing operations effective January 31st, 2026. If, after this date, you are unable to use the remaining card balance, please return it to your local Costco for a refund. We apologize for any inconvenience this may have caused,” the statement read.
The retailer apologized to customers in a statement as well, in which it stated that it “regret[s] the impact this decision has had on our cardholders and the many local restaurants.” Costco’s statement to members comes quite a few days after the Synergy gift cards were rendered obsolete. Even Costco was caught off guard. With no clear directive, different outlets dealt with the situation differently. Some had offered refunds for the gift cards, while other outlets told customers that there was nothing Costco could do. The total money blocked in these unredeemed cards will be known when bankruptcy filings are made public.
According to Bankrate analyst Ted Rossman, those affected by these cards going obsolete will have to get in line. "When the company behind that promise fails, gift card holders are typically unsecured creditors and end up near the back of the line," he explained. Turns out that as of 2024, 43% of Americans hold unused gift cards, with an average balance of more than $240.
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