Skip to content
Search AI Powered

Latest Stories

Fact-Checked

Our content is fact checked by our senior editorial staff to reflect accuracy and ensure our readers get sound information and advice to make the smartest, healthiest choices.

We adhere to structured guidelines for sourcing information and linking to other resources, including scientific studies and medical journals.

If you have any concerns about the accuracy of our content, please reach out to our editors by e-mailing editors@bestlifeonline.com.

Why You Should Buy Gift Cards at Costco—And the 1 Time You Shouldn’t

Even if you’re not giving them away, you could save money on your own purchases.

Costco
Shutterstock

The product recommendations in this post are recommendations by the writer and/or expert(s) interviewed and do not contain affiliate links. Meaning: If you use these links to buy something, we will not earn a commission.

Grabbing a gift card from the shelf can be one of the easiest ways to check someone off your shopping list, whether it’s going into a birthday card or coming through as a stocking stuffer during the holidays. In fact, they’re so convenient that many major retailers stock dozens of different options for popular restaurants, stores, and services across the U.S. But before you run out and grab them from just anywhere, many shoppers recommend buying your gift cards at Costco.

RELATED: 5 Best Things to Buy at Dollar General.


In one of his videos, personal finance TikToker Ravi Wadan explains that Costco has gift cards available for sale on its website. But unlike other stores, you can buy gift cards at a discount.

@raviwadan

Start buying gift cards at @Costco Wholesale to save money! #moneysavingtips #costcogiftcards #giftcarddeals #costcotiktok #costcofinds #giftcards

He then highlights what’s available on Costco's digital storefront, including $100 in gift cards to Domino’s or Papa John’s priced at just $80. You can also get better prices on gift cards to other restaurants like California Pizza Kitchen, IHOP, and even local options. In most cases, buying through Costco could save you roughly 20 percent.

And it’s not just food: There were also options for discounted Nintendo, xBox, and PlayStation gift cards; Fandango gift cards worth $100 in movie tickets for just $80; and a $500 Southwest Airlines gift card for just $449.99.

Of course, there are still some limitations. Wadan explains in the comment section of his video that shoppers must be Costco members to take advantage of these deals. Some cards—including the Southwest option—cap the number of gift cards that customers can purchase at one time.

However, there’s another potential way to unlock even more options. In a follow-up video, Wadan shows how the selection can be quite different when you visit a location in person.

“The gift cards you see online you won’t always see in the store, and the ones you see in the store you won’t always see online,” he explains.

RELATED: 5 Secrets Aldi Doesn't Want You to Know.

In a Reddit thread discussing the best available discounts, many shoppers chimed in to explain why they take advantage of the deal. “Costco regularly adds 10 to 30 percent of value when you buy gift cards in bulk,” one user wrote. “Buying Alaska and Southwest Airlines gift cards will add 10 percent of value ($500 for $449.99), while Cinemark and Spafinder add 20 percent. The most lucrative deals include Jiffy Lube (25 percent of value added), Miller Paint (30 percent of value), and Synergy Restaurants (30 percent).”

Besides warning of overspending in the name of getting a discount on a gift card you won’t use, there are some others who’ve warned that grabbing yours from Costco might not always be the best idea. In a thread on the store’s subreddit, one Costco call center employee said there can be serious issues with the cards that render them useless, often with balances showing up as $0 even just as they arrive.

The employee recounts several “horror stories,” including one family that spent $1,000 in Disney gift cards only to realize their balance was $0 when they arrived on their vacation, leaving them without any funds to purchase food and drinks in the park. And they add there are “many stories” of people losing out on the popular Southwest cards, in particular.

So, how does this happen? The employee explains that the companies Costco uses to supply the gift cards often have data breaches that allow thieves to use the numbers associated with some cards before they’re even delivered. And despite Costco’s famously lenient return policy, the employee says gift cards aren’t technically covered, with most customers entitled to a single lifetime exception for a refund in these types of situations.

"Please do not take the chance," they warn. "I’m sick of dealing with the issues, telling members that their cards were redeemed somewhere across the country by a person with a totally different name."

While many users said they’d used Costco’s website and stores for gift cards without issue, others said they had also fallen victim to scams that left them burnt. If you do end up taking the risk, the call center employee said that taking the cards and adding them to your online account for the store or service as quickly as possible can often help.