For nearly two decades, eBay gift cards have been a popular way for shoppers to pay for the variety of things they can buy on the platform. However, the company has announced it will discontinue gift card purchases, both in-store and online, as of early August 2026.
Many customers are unhappy with this move, and it may also have some negative consequences for sellers, as well. While there’s been no official word about the reason for the move, it could be to reduce fraud, eliminate high administrative costs, or due to shifting payment strategies.
eBay Discontinuing Both Physical and Digital Gift Cards
In an email notification sent to some users, eBay has announced that it’s going to stop selling physical and digital gift cards online on August 3rd, 2026. The notification said that physical gift cards will remain available in select stores, but only for a limited time.
Thankfully, there’s good news for those who currently have eBay gift cards, as the company said you can continue to use your balance as normal, and that U.S. gift card balances don’t expire. Also, if you opt to return an item, eBay say still offer you the option to choose an eBay gift card as your refund option.
This is a shocking decision, as gift cards have been around on eBay since 2007, other than a period in 2013 when the company pulled eBay-branded gift cards. These cards were available online, but also in a variety of stores across the USA.
The move also means that eBay is going in the complete opposite direction as its competitors, as the discontinuation announcement comes not long after a major competitor, TikTok Shop, rolled out digital gift cards.
Buyers Are Unhappy With the Decision
In a thread on Reddit about the move, many shoppers aren’t too happy with the decision from eBay.
For example, one commenter said the decision was crazy, and that they hoped that eBay gift cards would still be available through the CapitalOne Shopping rewards program. Another said that the only way they ever buy items on the platform is through gift cards, and many others said it was the same for them.
Other buyers said they would often buy the gift cards at the store to get discounts on purchases, use them for fuel points, or as a quick and easy thank-you gift. Finally, some commenters were unhappy with eBay not disclosing exactly why they decided to make this move.
Potential Reasons for the Change
While eBay hasn’t given a reason for the change, many believe it has to do with fraud. Gift card fraud (and other types of ecommerce fraud, for that matter) is rampant in ecommerce, and eBay was likely fed up with the amount of fraud-related activity with its gift cards.
Fraudsters may often drain card balances before they’re redeemed, using stolen credit card numbers to buy cards, or tricking someone into sending their gift cards or card details.
This is a likely reason for the discontinuation, but it isn’t the only possibility. The potentially high administrative costs of selling gift cards in third-party stores or offering them in credit card reward programs may have also led eBay to reconsider.
While there’s not a direct fee, per se, retailers will often take a percentage of each card sold, or buy them at a bulk discount and then sell at face value.
Finally, shifting payment strategies within eBay may have also been the reason for the move. For example, eBay may be pushing more people toward its in-house payment processing system called Managed Payments, and has hopes of better streamlining customer payments.
Our Take
The News is Not Only Bad for Buyers, But Also Sellers
When many people hear this news, they instantly think about how bad, annoying, and confusing it may be for buyers. While they’re certainly impacted, this news may also have a negative impact on sellers.
Firstly, it eliminates a popular payment method for customers, which may make certain buyers unwilling to shop on the platform any longer. Also, it reduces impulse buying power. When people get eBay gift cards via discounts or through credit card rewards programs, many treat this like “free money” and instantly start shopping on the platform.
Because of this discontinuation, some sellers may see a drop in casual spending from these types of buyers.
Similarly, with no more eBay gift cards, there are no more opportunities for eBay to put these gift cards on sale. In the past, when eBay gift cards went on sale, there would often be bursts of traffic, engagement, and sales on the marketplace due to more people shopping on the platform thanks to the discount.
