The Synergy World gift card sold at Costco has effectively become unusable after its issuing company filed for bankruptcy, raising concerns about consumer losses. Some Costco stores have issued refunds, but no companywide policy has been announced, leaving customers uncertain about their options.
Synergy World recently filed for Chapter 7 “bankruptcy protection” and suspended all operations. As a result, the cards can no longer be used at affiliated restaurants across the United States, including in California, where up to about 400 partner locations previously accepted them.
Although the cards were sold at Costco, Synergy World — not the retailer — issued and managed them. When the issuer stopped operating, the payment function also ceased.
The company had initially said card use would remain allowed until early this month, but reversed its decision and stopped all usage after redemption requests surged. The amount of unused balances tied to the cards is expected to become clear only after bankruptcy proceedings progress.
Financial information firm Bankrate said, “Gift cards promise future goods or services, and if the issuer goes bankrupt, consumers are classified as unsecured creditors and are likely to incur losses.”
Experts advise buyers to verify the issuing company when purchasing third-party gift cards and to avoid long-term storage or high-value purchases.
lee.eunyoung6@koreadaily.com
