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Warehouse club Costco is issuing a recall for certain gift cards sold at its locations nationwide.
The retailer said in a letter to members that customers who purchased Synergy restaurant gift cards between Oct. 27, 2025, and Jan. 26, 2026, are eligible for a refund for the remaining card balance.
The recall comes after Synergy World, a gift and loyalty card company, abruptly shut down last month after filing for Chapter 7 bankruptcy protection. As a result, its gift cards can no longer be redeemed, leaving some consumers holding unusable balances with little immediate recourse.
SOME GIFT CARDS SOLD AT COSTCO ARE NOW WORTHLESS
Synergy World filed for Chapter 7 bankruptcy protection in late January. (Angus Mordant/Bloomberg via Getty Images)
Synergy’s gift cards were third-party products. While they were sold at Costco and redeemable at hundreds of participating restaurants nationwide, the cards were issued and managed by Synergy – not Costco or the restaurants themselves.
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Once Synergy shut down, the cards effectively became worthless.
“One of the biggest lessons that people should learn from this is that gift cards should be used sooner rather than later,” Matt Schulz, LendingTree’s chief consumer finance analyst, told FOX Business. “That’s especially true if the company involved is on shaky footing. However, with any gift card, you’re better off not letting it gather dust. Otherwise, you risk losing it, forgetting about it or just having it lose value. That’s the last thing anyone needs today.”
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Synergy initially said gift cards would be honored through early February, but later halted redemptions altogether, citing a surge in demand. The total amount of money tied up in unredeemed cards will not be known until bankruptcy filings are made public.
The gift cards were sold by Costco but issued by Synergy World. (Lindsey Nicholson/UCG/Universal Images Group)
Expert tips when it comes to gift cards
Schulz suggested that consumers keep the gift card’s receipt until it’s been used. That way, the refund process is more likely to be more hassle-free.
He also advised registering the gift card, when possible, which can help if the card gets lost. And, Schulz said paying for a gift card with a credit card can be beneficial to the consumer in the event that there is fraudulent activity that needs to be reported.
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