eBay’s withdrawal from new gift card sales has created a product gap for businesses that use the marketplace’s cards as rewards. Giftbit highlighted the change on August 7, 2026, following the start of a phase-out at many digital distributors on August 3. Existing gift cards remain redeemable. [S01]
The distinction between stopping sales and cancelling balances is central. eBay’s own FAQ, updated August 4, says physical cards may still be found while retailers sell remaining stock, but that stock will not be replenished. Existing cards do not expire, and eligible purchase refunds return to the original gift card balance. [S02]
Stopping new supply leaves existing balances under their own rules
eBay is a marketplace connecting buyers and sellers, rather than a single-brand retailer holding all the merchandise sold on its platform. Its August 2026 results reported second-quarter gross merchandise volume of $22.4 billion and revenue of $3.1 billion. The difference matters: the value of goods traded is not the same as the company’s revenue. [S03]
For a reward programme, a marketplace card offers choice within one destination. Removing new supply can leave administrators with a discontinuity: future awards need another fulfilment option, even though recipients of previously issued cards can continue spending their balances.
Giftbit occupies the distribution layer. Businesses use its platform and API to send rewards from a catalogue. Its pricing page says it earns through margin-sharing relationships with card partners and a share of unclaimed value on promotional rewards with claim deadlines. [S04] Keeping a usable catalogue is consequently part of its commercial proposition, not merely a customer-service exercise.
Existing balances remain subject to redemption controls. The issuer terms, last updated May 7, 2025, allow at most USD1,000 per day and USD1,500 per calendar month across accounts linked to a user. The different time windows do not create an extra combined allowance. They govern use of issued value, rather than restarting new card supply. [5]
Existing eBay cards retain daily and monthly redemption caps
Aggregate limits across accounts linked to a user, under the issuer’s terms.
USD redeemed
Tap or hover for details. All values are also available in the data table.
Source
These are aggregate ceilings for different time windows, not denominations, typical spending or outstanding balances. Linked accounts count together. The limits do not add to a USD2500 allowance. Other balance, eligibility and product restrictions still apply; the caps do not reopen new sales.
Show data tableHide data table
| Category | Published value |
|---|---|
| Per day | 1,000.0 USD redeemed |
| Per calendar month | 1,500.0 USD redeemed |
Giftbit’s announcement presents alternative rewards as a response to discontinued supply. That should not be read as evidence of an eBay endorsement of a replacement, or as a migration of outstanding balances. [S01] A distributor can change what it offers for the next award without changing the terms of a card already issued.
The business opportunity for an aggregator is continuity: an employer, research organiser or loyalty programme can keep using the same sending workflow while changing the selected brand. The risk is that a replacement has a different use case, acceptance range or recipient appeal. Choice across a catalogue helps manage availability; it does not make every product economically or experientially interchangeable.
The public gift card FAQ sets out the operational consequences of the phase-out but does not give its commercial rationale. It would be speculative to describe the decision as a proven response to fraud losses, distribution costs or weak demand. [S02]
eBay’s quarterly results show an active marketplace with substantial transaction and advertising activity, but do not connect those results to the gift card withdrawal. [S03] The defensible conclusion is narrower: eBay is winding down a route for new prepaid funding, and reward distributors must redirect future demand. Whether that reduces costs for eBay or transfers profitable volume to another reward brand remains undisclosed.
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Oliver Reed
Oliver Reed covers industry acquisitions, investment and market research for Gift Card News.