These Costco-Sold Restaurant Gift Cards Are No Longer Valid — Here's Why

Access to discounted restaurant gift cards is one of the many perks of being a Costco member. Good deals sometimes come at a price, though. For customers who purchased Synergy Restaurant Gift Cards, that price is a defunct piece of plastic. In January, Synergy World, which sold multi-restaurant gift cards through Costco, filed for Chapter 7 bankruptcy. The cards were sold in California, New Mexico, Arizona, Colorado, Nevada, and Texas, where customers could redeem them at local restaurants.

Synergy had originally planned to honor gift cards through January 31, but was forced to cut the program short. The company stopped redeeming gift cards on January 23 after a surge of customers rushed to use their remaining balances. There's a lot of money that remains tied up in unredeemed gift cards in general, but we won't know how much money was lost in this disaster until the bankruptcy proceedings go through.

"It is with a heavy heart that Synergy World has made the difficult decision to discontinue the Synergy Restaurant Gift Card Program," the company announced on its website. "We fully recognize and sincerely regret the impact that this decision has had on our cardholders and the many local restaurants."

Legally, neither Costco nor the participating restaurants are liable for the gift cards. Synergy issued the cards, Costco simply sold them. While gift card holders do have certain legal protections, they're typically out of luck when it comes to bankruptcy proceedings. Gift card holders are considered unsecured creditors, which means they have to fight for scraps after the company has paid off its other debts. These unsecured creditors likely won't receive any money at all.

Initially, there was no word as to whether Costco would refund customers who purchased Synergy gift cards. Some Costco locations offered refunds as a gesture of goodwill despite the fact that gift cards are typically non-refundable. Others refused.

Now, Costco has issued an official statement: Members who purchased Synergy Restaurant Gift Cards between Oct. 27, 2025 and Jan. 26, 2026 can return them for a refund. Not sure if the remaining money warrants a trip? You can still check the balance at Card Balance.