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Initially, Synergy promised cardholders they could use their balances through January 31. Then, without much warning, the company abruptly cut off all transactions. They blamed a “tremendous surge in redemption rates,” leaving customers rushing to restaurants only to find card readers disabled and doors shut in their faces.
Costco Steps Up Where Others Would Walk Away
Here’s where Costco’s actions stand out. Their official policy clearly states that gift card purchases are non-refundable – no exceptions. But they made an exception anyway.
Costco mailed letters to members who purchased Synergy Restaurant Gift Cards between October 27, 2025, and January 26, 2026, instructing them to bring unused cards to any warehouse for a full refund. No loopholes, no arbitrary deadlines. Just Costco protecting its members.
This matters. In most gift card bankruptcies, consumers are unsecured creditors, often recovering pennies or nothing at all. When Borders collapsed, cardholders were left holding $211 million in worthless cards. RadioShack drained $44 million in outstanding cards before shutting down. Sharper Image forced customers to spend double their card’s value to redeem. Costco did none of that.
What Cardholders Must Do Now
If you still have a Synergy Restaurant Gift Card, don’t wait. First, check your remaining balance online at the Synergy website. Then, take the card – and your receipt, if you have it – to your local Costco customer service desk. Refunds will be processed to your original payment method.
If you paid with a credit card, a chargeback may also be available as a backup. Some Costco locations handled refunds inconsistently immediately after Synergy’s collapse, but the official member letter has now standardized the process. Documentation will make it smoother.
The Bigger Lesson for Costco Members
Financial experts have long warned: gift cards are essentially short-term loans to a company. If the company collapses, that loan disappears. Third-party gift cards, like those issued by middlemen rather than directly by restaurants, carry extra risk.
The rule is simple: use gift cards quickly, favor direct-issued cards, and pay with a credit card to keep a chargeback safety net. Costco still sells discounted cards issued directly by vendors – those don’t carry the same risk.
For anyone holding a Synergy card, there’s no rush toward a hard deadline – but don’t let them sit in a drawer. Costco is stepping in where most retailers would have walked away. Go get your money back.
