Costco Recalls Synergy Restaurant Gift Cards After Supplier Bankruptcy

Customers have until March 31 to return affected gift cards for a refund.

Published on Feb. 22, 2026

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Costco is recalling Synergy Restaurant Gift Cards after the third-party gift card distributor, Synergy World, announced it was winding down operations and filing for Chapter 7 bankruptcy. Synergy told customers they had until January 31 to redeem the cards, leading to a surge in redemptions, but some cards stopped working days before the deadline. Costco is now offering refunds to customers who return the affected gift cards purchased between October 27, 2025 and January 26, 2026.

Why it matters

The Synergy World bankruptcy and gift card recall highlights the risks consumers face when purchasing third-party gift cards, even from major retailers like Costco. The situation left some customers with unusable gift cards and no recourse, underscoring the importance of gift card policies and protections.

The details

Synergy World, a California-based company that distributed restaurant gift cards, announced last month that it was winding down operations and filing for Chapter 7 bankruptcy. The company told customers they had until January 31 to redeem the cards, leading to a surge in redemptions. However, some customers reported their cards stopped working days before the deadline. Synergy cited the 'tremendous surge in redemption rates' as the reason for the 'immediate discontinuation of the program'. Restaurant owners confirmed the gift cards were being declined.

  • Synergy World announced it was winding down operations and filing for bankruptcy in January 2026.
  • Synergy told customers they had until January 31, 2026 to redeem the gift cards.
  • Some customers reported their Synergy gift cards stopped working days before the January 31 deadline.
  • Costco is recalling Synergy Restaurant Gift Cards purchased between October 27, 2025 and January 26, 2026.

The players

Synergy World

A California-based company that distributed restaurant gift cards and announced it was winding down operations and filing for Chapter 7 bankruptcy.

Costco

The warehouse retailer that sold the affected Synergy Restaurant Gift Cards and is now offering refunds to customers.

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What’s next

Costco is offering refunds to customers who return the affected Synergy Restaurant Gift Cards purchased between October 27, 2025 and January 26, 2026 by March 31, 2026.

The takeaway

This incident highlights the risks consumers face when purchasing third-party gift cards, even from major retailers. It underscores the importance of understanding gift card policies and protections, as well as the need for stronger regulations around the gift card industry to prevent similar situations in the future.