Costco Gift Cards Suddenly Worth $0? What to Know About the Synergy Recall and Refunds
Some Costco restaurant gift cards are suddenly worthless—see if yours qualifies for a refund.
Costco is known for amazing savings, from their eyeglasses to their hidden perks, but one popular item year after year: restaurant gift cards—many of which offer savings of 20%. at popular chain restaurants. But if you’ve ever purchased one of these gift cards, you may want to give it a closer look. A section of that gift card display is issued by the company Synergy World, a company that has abruptly filed for Chapter 7 bankruptcy protection. After its shutdown on January 31, 2026, any unused or partially used gift cards can’t be redeemed, leaving customers with cards worth nothing.
This chapter of bankruptcy “provides for liquidation, or the sale of a debtor’s nonexempt property and the distribution of the proceeds to creditors,” Synergy World explained in a statement.
“It is with a heavy heart that Synergy World has made the difficult decision to discontinue the Synergy Restaurant Gift Card Program,” the statement reads. “We fully recognize and sincerely regret the impact this decision has had on our cardholders and the many local restaurants… we extend our sincere gratitude to the customers and restaurants who supported the program for almost two decades.”
Why the gift cards no longer work
You might be wondering why the gift card is now useless if the purchase was made at Costco. The reason? These cards were third-party products, meaning they were issued and managed by Synergy World, despite being sold by Costco.
So with Synergy World filing for bankruptcy and shutting down, the gift cards they issued can no longer be redeemed. Bankrate analyst Ted Rossman, explained the reasoning: “It’s a liability,” Rossman told the San Diego Union Tribune. “From a legal standpoint, a gift card is basically a contract for a future sale…It’s a promise for future goods or services. When the company behind that promise fails, gift card holders are typically unsecured creditors and end up near the back of the line.”
Costco issued a recall on their Synergy World gift cards sold between the dates of October 27, 2025, and January 26, 2026. Restaurants that were affected may include but are not limited to Cold Stone Creamery, Chipotle and Brick and Bourbon. A definitive list has not yet been released.
What to do with your Synergy gift card
If you purchased a Synergy gift card between the dates listed above (check the gift card or your receipt for the company name), you might be able to receive a refund from Costco. Though it’s not a companywide policy, many Costco locations have been offering refunds for those customers, though it’s not guaranteed. On Costco’s recall page, customers can find a letter from the big box store explaining the recall and what you can do if you have one of these gift cards.
“Unfortunately, we were recently notified by the Synergy Gift Card Network/Synergy World they would be ceasing operations effective January 31st, 2026,” the letter reads. “If after this date you are unable to use the remaining card balance, please return them to your local Costco for a refund.”
There have been reports of Costco denying a refund because of the usual nonrefundable policy but in the case of the card company filing for bankruptcy, exceptions have been made.
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