Paypal/ebay gift cards available at retail stores. Opportunity?
 

Paypal/ebay is now offering gift cards at a number of merchants:

http://giftcard.ebay.com/ns/wheretobuy.html

Looks like about 25 different, such as Kroger's, Albertson's (several diff. stores), Safeway, Giant, etc.

Does anyone know if any of these merchants will give rebates or discounts or FF miles along with purchase of such gift cards, giving some arbitrage opportunities?

I have a feeling PayPal would realize pretty quick if you keep sending money to the same person(s) with gift cards, but it would be nice while it worked.

Also, do you have to win an auction to use one or can you skip eBay and just use them on Paypal?

It's a nice way of boosting your spending on the "every day purchases" category that earns more points/miles with, for instance, the DL and Hilton AmEx cards.

You can Paypal anybody money (or receive from anybody) for "services." Purchase of goods on ebay (or otherwise) not required.

There is a fee schedule though, that is 2-3% depending on volume, except when sending E-Checks. I doubt know what an E-Check is, does anyone else? It is capped at $5 per transfer. I assume that this is just an ACH, but I don't know if you can pay for it with Gift cards and send an E-Check?