1) Spending the gift card reduces the refund value
- Buy $500 iPad + $140 Gift Card
- Use $140 Gift Card
- Return $500 iPad and get $360 Refund
2) Yes, they track the gift card number
Target isn't new at this game and their well established system was designed to thwart people like you. They know exactly how much is on every gift card and how it was obtained. So rather than trying to "outsmart" them then why not just appreciate that a 30% gift card discount on a month old product is cheaper than anything you'll see all year.
3) Target Gift Card = Adult Life
Target sells clothes, electronics, food, movies and housewares. No offense, but we can only assume that someone who can't find something to buy at Target is a kid and has mom pay for their living expenses. So IF thats the case then why not just sell the gift card to mom? Lunchables don't grow on trees you know.