For a damaged, non-redeemed gift card, the refund or replacement must be handled by the retailer that sold the card, not by Microsoft.
From the Microsoft gift card terms and conditions:
- Gift cards purchased from a third party that is not Microsoft are subject to that third party’s return policies.
- Microsoft is not responsible if a gift card is lost, stolen, misplaced, or used without permission.
Because the card was bought at Sheetz (a third-party retailer) and has not been redeemed, the only available path in the provided information is:
- Work with the store where the card was purchased (Sheetz) using the original card and receipt, under their own policies for defective or unreadable cards.
- If the store refuses, escalate within that retailer’s customer service chain (store manager, then corporate support), since Microsoft’s terms state that third-party seller policies apply and Microsoft does not refund or replace those cards.
The context does not provide any process for Microsoft to directly refund or replace a third‑party–sold, unreadable gift card.
References: