eBay first launched gift cards in 2007 through a distribution deal with the Blackhawk Network. The eBay gift cards were available in stores and supermarkets nationwide in denominations of $25 and $50; and consumers were required to have a PayPal account linked to their bank account or credit card in order to redeem the cards.
eBay customers discussed the news on Reddit. One buyer said the change would actually stop them from buying on the site: "I only buy items on eBay with gift Cards. (I don't own a Credit Card). How am I going to be able to shop now?"
Numerous shoppers said they selected eBay gift cards when redeeming rewards from Capital One Shopping. Others said they earned cashback when buying eBay gift cards. One seller wrote, "Yeah, this is disappointing. In my case, I buy eBay gift cards at Kroger with my AMEX Blue Cash Preferred card, for cash back on the card and fuel points. This is going to cut back on my eBay purchases."
Another said, "Oh rats, there goes my 5% off hack. For the past few years I've been using a credit card that offers 5% cashback in revolving categories, and I would buy eBay gift cards in the categories that suit it."
"I typically buy the eBay eGift Cards from Target.com, where I can use my 5% Red Card discount," another buyer wrote. "Then load them to my eBay account. I usually stock up when Target runs its Circle promos, for example, spend $200 and get $30 in Circle Cash or whatever. So I would buy $200 in eBay gift cards, take the 5% discount, and then get the Circle Cash to use on a future Target purchase."
One seller who said they received eBay gift cards as gifts would use them to "pull the trigger on a high value item" they'd been watching. "Their loss. I guess I'm switching to Amazon gift cards now."
One customer shared the email notification they received:
Important update about eBay gift cards
Hi (insert name),
We are reaching out to share an update about eBay gift cards.
Starting August 3, 2026, eBay will no longer sell physical or digital eBay gift cards online. For a limited period, physical eBay gift cards will remain available for sale in select stores.
If you already have an eBay gift card, you can continue to use your balance on eBay just as you do today. In the U.S., gift card balances do not expire.
If you return an item, we may still offer you the ability to choose an eBay gift card as your refund option.
There’s nothing you need to do - we're sharing this update to keep you informed. For more information, please visit our Help page.
To learn more and if you have any questions or concerns, just get in touch - we're here to help.
Thank you for being a valued member of the eBay community.
Buyers Disappointed as eBay Pulls Gift Cards Again