Not in all situations. Because of various cross promotions between car insurance, supermarket and airlines, by using gift cards for groceries I get an effective ~9% discount every time. That really adds up over a year.
For Apple and others, you can use secondary gift card market to get some discounts too, if you wanna risk it.
I regularly see people in line at the supermarket, buying gift cards. I notice, because it’s a discrete workflow, that stands out.
I doubt they are all feeding scammers.
I think that charities often solicit gift cards.
It's the same premise as buying someone any gift instead of just giving them the money so they can buy whatever they want.
Edit to add: kids often don't have bank accounts, i mostly received gift cards as a child, from relatives who wouldn't want to mail cash and couldn't give me cash in person. On a dark note, giving a kid a gift card to a toy store makes it harder for the parents to steal it for themselves.
The whole practice originates from "gift certificates" where you'd maybe go to your favorite spa and get a gift certificate to give someone, so that the spa treatment is the gift you're giving, but the recipient redeems it whenever they want. That just got abstracted to non-service gifts as well, with the same idea ("treat yourself to a new video game, whichever and whenever you feel like it" -- that's the gift, facilitated by the card)
Additionally the inverse is true. Sometimes kids choices are restrained, and they really would like to do a thing they are not allowed to, and gift cards offered them away to do that. Case in point: my tween figured out that we don’t let him buy in game currency for any the games that we do let him play, however, when a relative gives him a gift card, we let him redeem it, making gift cards incredibly popular gifts.
If they had to reimburse you for the cost of all your lost files, then we'd see the real impact on finances.
GCs are valuable to brands because they are marketing tools. Recipients are prompted to go to the merchant to spend money, and they usually spend about 40% more than the face value of the card.
Also, GCs are valuable to merchants for breakage. This is when a card (or partial balance) goes unused. Starbucks, as an imperfect example, recognizes about 10% of their total outstanding GC balance as revenue every year, due to breakage. This amounts to hundreds of millions of dollars.
Maybe it is more accurate this way?
The GC face value is a liability on the books though. It's treated as debt when doing cash calculations.
They actually do want you to use the cards though. The overspend is more valuable to them than the other disposition possibilities. Recognized revenue is always the best outcome. The interest/appreciation is the same for the merchant, whether on float or on revenue, but revenue is better for reports.
More broadly: All benefits of the cards definitely accrue to the merchant. There's absolutely nothing valuable to consumers about the deal!
I've never had my $100 GC be worth $104 a year later, but for the issuer it is. They just keep the $4.