Costco returns the gift card after the third party files for bankruptcy

Warehouse club Costco is issuing a recall for certain gift cards that are sold in its offices nationwide.

The retailer said in a letter to members that customers who purchased Synergy restaurant gift cards between October 27, 2025 and January 26, 2026 are eligible for a refund of the card’s remaining balance.

The recall comes after Synergy World, a gift and loyalty card company, abruptly closed last month after filing for Chapter 7. bankruptcy protection. As a result, its gift cards can no longer be redeemed, leaving some consumers with unused balances with little immediate recourse.

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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. When they were sold at Costco The cards are redeemable at hundreds of participating restaurants nationwide and are issued and administered by Synergy — not Costco or the restaurants themselves.

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After Synergy closed, the cards became practically worthless.

« One of the biggest lessons people should learn from this is that Gift Cards should be used sooner rather than later, » Matt Schulz, lead consumer finance analyst at LendingTree, told FOX Business. « This is especially true if the company involved is on shaky ground. But with any gift card, it’s best not to let it gather dust. Otherwise, you risk losing it, forgetting about it, or just losing value. That’s the last thing anyone needs today. »

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Synergy initially said gift cards would be distributed until early February, but later suspended redemptions entirely due to increased demand. In total amount of money tied to unclaimed cards will not be known until the bankruptcy filings are made public.

The gift cards were sold by Costco, but were sold by Synergy World. (Lindsey Nicholson/UCG/Universal Images Group)

Expert tips on gift cards

Schulz suggested that consumers keep the gift card receipt until it is used. This way, the recovery process is likely to be more hassle-free.

He also advised to register the gift card if possible, which can help if the card is 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.