eBay Pulls Plug On Gift Cards: What Will Happen To Existing Balances?
eBay will stop selling digital gift cards on August 3, 2026, with physical gift cards at retail locations expected to gradually disappear as remaining inventory sells through.
Existing eBay gift cards will remain valid and can still be used at checkout, according to the company.
“Only eBay-issued gift cards are being discontinued,” eBay says, adding that third-party gift card listings on the marketplace will continue to be available.
eBay’s dedicated Gift Cards page is still live as of publication, continuing to promote digital delivery, no fees, no expiration date, and redemption for “almost any item on eBay.com.”
However, the updated eBay help page now lays out the end of sales timeline, saying digital gift cards will remain available “on eBay” and other online retailers until August 3, 2026, while physical gift cards may continue to be available at CVS, Walgreens, and other retailers for a limited time after that date while supplies last.
eBay’s stated explanation for the move is brief, telling users the company has “decided to stop selling eBay gift cards and focus on other ways to support customers.”
Refunds for orders paid via gift card will remain unchanged - if the order is cancelled or returned, the refund will go back to the gift card balance as usual.
It's less clear if eBay will continue to allow refunds to be directed to an eBay gift card for returns that were paid for with other methods, an option that was originally rolled out last year.
Liz Morton
That change suggested eBay may have been looking for ways to keep more refund dollars inside the marketplace ecosystem, with buyers potentially encouraged to accept a faster eBay gift card refund instead of waiting several days for a credit card refund.
While eBay may be discontinuing the sale of new gift cards, it's still possible they could offer an option to have refunds made to a buyer's on-platform wallet or balance account to keep that spending flywheel spinning.
But getting rid of gift cards could also remove a discount lever eBay has deployed in the past to incentivize sales at key seasonal moments or to boost financial metrics.
Liz Morton
Gift cards can be a convenient gifting option for buyers, but they can also be financially useful for marketplaces too.
Money comes in upfront, redemption can happen later, and some balances may never be fully used, making gift card promotions an attractive "go-to" maneuver for short-term gain.
eBay has not said whether the decision to end gift card sales is connected to fraud concerns, financial reporting, partner arrangements, regulatory considerations, or a broader payments strategy shift.
Gift card scams have been a long-running problem across the retail and ecommerce industry, with fraudsters often pressuring victims to buy gift cards and provide redemption codes as an untraceable form of payment.
The company’s gift card pages continue to warn buyers to protect themselves from scams, reminding users that eBay gift cards can only be redeemed at checkout on eBay.com and should never be used to pay anyone outside of the platform.
For buyers who already have eBay gift cards, it's important to note that existing cards will remain usable and balances will not disappear after August 3, 2026.
Previously purchased gift cards will still be able to be linked to an eBay account and do not expire - once a card is used, any remaining balance stays attached to that same account for future purchases.
How will eBay discontinuing gift cards affect your shopping on the site? Let us know in the comments below!
