Valve is discontinuing physical Steam Gift Cards due to fraud and scams targeting gift card purchases, moving to digital gift cards only in a phased plan.

Physical cards are expected to be out of stock by the end of 2026, but any cards sold during 2026 will remain usable where permitted by law.

Valve will continue offering Steam Digital Gift Cards and is adding features like guest checkout to improve usability for newcomers and those unfamiliar with the platform.

Scams commonly target vulnerable groups, including the elderly or digitally less savvy, via calls, messages, or social media with pressure to pay immediately and keep secrets.

Gift cards are highly fraud-prone because they are untraceable and susceptible to social engineering and tech support scams.

The move is driven by fraud concerns, as criminals exploit major-brand gift cards, despite existing countermeasures such as merchant cooperation and warnings.

Scammers typically instruct victims to buy specific cards, share the card numbers and PINs, enabling remote draining of funds.

The change aims to reduce gift card scam risk, aligning with broader concerns acknowledged by institutions like the FTC.

There is skepticism that Valve’s decision may also reduce refund-related headaches for the company, beyond protecting victims.

Even with the shift, fraudsters could pivot to other gift card types, limiting the overall reduction of fraud opportunities.

Physical cards are described as a costly payment method.

The move marks a significant shift and end of an era for physical gift cards, reflecting broader fraud-fighting efforts even as convenience diminishes.