A gift card is supposed to cover future expenses, not disappear overnight.
Costco members need to open their wallets and double-check gift card purchases after the retailer announced a gift card recall tied to a sudden bankruptcy.
Announced this week, Costco is recalling Synergy Restaurant Gift Cards after the company shut down operations, leaving the cards unusable.
What triggered the recall
The recall does not involve fraud or stolen balances. Instead, it stems from the Synergy World's Chapter 7 bankruptcy filing, which sold the multi-restaurant gift cards at Costco.
That company filed for Chapter 7 bankruptcy and ceased operations effective Jan. 31, 2026. Once Synergy shut down, the infrastructure that processed and validated those restaurant gift cards stopped working.
Costco notified members in a recent member letter that Synergy Restaurant gift cards sold between late October 2025 and late January 2026 will no longer function. Costco is offering refunds to customers with affected cards.
Which cards are affected
The recall applies specifically to Synergy-issued restaurant gift cards purchased at Costco warehouses or through Costco’s website during the designated time frame.
Not every Costco gift card is involved. The issue is limited to cards connected to Synergy’s network. Costco has stated that other restaurant cards and brand-specific gift cards are not part of this recall.
Members who purchased gift cards between Oct. 27, 2025, and Jan. 26, 2026, should look at the cards to see whether they are part of the Synergy program.
If the card references Synergy World or the Synergy Gift Card Network on the back, it may be subject to the recall.
What Costco is offering
Costco typically does not allow returns on gift cards. They are usually treated as final sale items. In this case, they are making an exception.
Costco members with Synergy Restaurant gift cards can return them to a Costco warehouse for a refund of the unused balance. Proof of purchase may be required to process the refund. If you have questions, contacting the Costco in your area is the best way to get updated and factual information.
What customers should do
Anyone who purchased Synergy Restaurant gift cards at Costco during the affected window should take the card for a refund. Bring the card to the nearest Costco warehouse and speak with a member services representative.
Acting quickly gives you the best chance of receiving a refund without added hassle. Having a receipt with the purchase date is also handy, though Costco may be able to cross-reference and look up purchase dates associated with a Costco membership.
A reminder about third party gift cards
Gift cards remain one of the most popular purchases because they are easy to buy and easy to give. But this recall highlights a lesser-known risk. Not all gift cards are issued directly by the brand printed on the front. Some are backed by outside networks that handle payment processing and redemption. If that network fails, the card’s usability is affected.
For many people, restaurant gift cards represent planned dinners or simple nights out. Discovering that a card no longer works can disrupt those plans. Costco’s decision to offer refunds softens the impact, as they are doing their best to provide good customer service in a situation beyond their control.
The bottom line: If you purchased a Synergy Restaurant gift card at Costco between late October and late January, exchange it there as soon as possible to get your money back.
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