Costco is recalling select restaurant gift cards sold nationwide after the cards’ issuing company abruptly shut down, leaving many customers unable to redeem remaining balances.

According to a notice sent to members, the recall applies to Synergy restaurant gift cards purchased between Oct. 27, 2025, and Jan. 26, 2026. Costco is offering refunds for any unused balance on the affected cards.

The action follows the collapse of Synergy World, a third‑party gift and loyalty card provider that filed for Chapter 7 bankruptcy and ceased operations last month. With the company no longer processing redemptions, the cards effectively became worthless despite being sold through Costco and accepted at hundreds of restaurants nationwide.

Consumer finance analysts say the situation underscores the importance of using gift cards promptly, especially when issued by smaller or financially unstable companies. “You’re better off not letting it gather dust,” LendingTree analyst Matt Schulz told Fox Business, noting that unused cards can be lost, forgotten, or become invalid if the issuer fails.

Synergy initially indicated it would honor cards through early February but later halted redemptions due to a surge in demand. The total value of unredeemed balances will not be known until bankruptcy filings are finalized.
Experts recommend that consumers keep receipts until a gift card is fully used, register cards when possible, and consider paying with a credit card to ensure better protection in cases of fraud or business failure.