Yes that is true it is better than nothing but what I don't understand is that buying 5 x $100 MCGCs seems premeditated and highly unnecessary. If you had the $500, why not just give it back to your friend in the same way they borrowed it? Why would the friend spend more money wasting $4.95 per card in fees for an extra $25 when they probably don't have $25 to waste. I highly doubt the OP and the friend agreed upon receiving $500 in GC form but wasn't specific that it had to be cash although kinda silly that you would have to go to that level.

$500 may not seem like a lot to you but imagine if you lent someone $5000 and they paid you back in 50x$100 Vanila VGC/MCGC..