The Synergy gift card collapse: What to do now

 

Your Synergy Gift Card Might Not Work: Here's the "What Now"

What Happened?

Synergy World, Inc. (operating as the Synergy Gift Card Network) has collapsed. After 30 years in business, the company abruptly shuttered its operations in late Jan. 2026 and is preparing for Chapter 7 bankruptcy.

While they initially told customers they had until January 31 to use their balances, the company pulled the plug early on Jan. 30, citing a "tremendous surge in redemption rates."

Because Synergy provided the digital processing for these cards, their shutdown means the hardware in local restaurants is now throwing "Program Discontinued" errors. The money you or your loved ones spent is currently frozen in a legal limbo.

 

What Now: Ways to Protect Your Wallet

If you have a card with a "Synergy" Logo or a multi-restaurant card bought at Costco, here is your game plan:

1. Go to Costco immediately: If you purchased your cards at Costco (the primary seller), they are currently the hero of this story. Reports from across the country confirm that Costco is issuing full refunds for unused cards. Some locations are even processing partial refunds if you can show your balance.
2. Keep your physical cards: Do not throw them away. Even if it doesn't scan, it is physical evidence that you are a "creditor" in the upcoming bankruptcy case.
3. Check your local favorites: Some restaurants like Flavors of East Africa in San Diego said that Synergy cards once made up 80% of their sales. While most can no longer process them, a few independent shops may offer a manual discount if you show them the card, though they are under no legal obligation to do so. It never hurts to ask politely.
4. File a credit card dispute: If you, or someone you know, bought these cards using a credit card recently (within 60-90 days) and not from Costco, you can call the bank and request a chargeback for "services not received."

Who is Synergy World, Inc. 

Founded in 1995 and headquartered in San Diego, Synergy World, Inc. operated for over 30 years as a specialized technology provider for independent merchant loyalty and gift card programs. Led by CEO Joel Kantor and the Kantor family, the company managed an infrastructure that served thousands of small businesses and processed millions of transactions per month for consumers worldwide. Despite its decades-long presence in the industry, the company announced its permanent closure in Jan. 2026, citing ongoing financial losses and non-viable margins that necessitated a formal wind-down and a Chapter 7 bankruptcy filing.

 How We Sourced This

• Official Synergy Website Notice announcing Chapter 7 and immediate cessation of redemptions. Also used to put together the company bio.
• Official Synergy Website Notice to Customers.
• Las Vegas Sun and CBS 8 San Diego reporting on the early shutdown.
• The Street focuses on the market impact on retailers like Costco.
• Reddit Forum discussing the lack of escrow protections for gift card holders.

Missing Info We Are Looking For

Unfortunately, since Synergy World, Inc is a private company, we are unable to confirm the exact number of businesses they supported, the outstanding balance of gift cards, or a detailed list of businesses affected. More information should be made available after the company formally applies for bankruptcy.

Sound Off

Do you have a card for a restaurant that has been affected? Share it with others in the comments.

 

A Note on How This Was Written: We’re all about using the best tools to get you relevant information fast. To put this blog post together, we used AI to help, but because tech can make errors, a real human editor (me!) personally fact-checked every detail, verified every link, and gave the final "thumbs up" before hitting publish. Think of it as AI-powered research with human-delivered facts.