Watching the meltdown over at the MVD forum, this is probably the cleanest MF process around - and assuming the card issuer cannot see what you're buying (or doesn't care as they earn their fee regardless), this deal is backed by the force of law (PIN requirement) and the fact that people by the thousands buy money orders from USPS, Walmart and other outlets every day using debit cards, so a hefty MF activity boost is unlikely to spook them (unlike thousands of people attacking OD stores for VRs and variable gift cards).

No one really knows how the money is getting from your credit card to the gift card to the money order to the bank - provided your bank doesn't have a problem with MO deposits, this process should be smooth sailing.