We get this question a lot on the Budget Board. According to the rules that Chase has for the program, your rewards dollars are not supposed to be used for cash
or its equivalent. In practice the answer is: it depends on where you buy it.
If you were to try to buy one at you local
Disney Store it will depend on the manager. Some will allow it, most will not.
But, if you go to
Disneyshopping.com and order a gift card, you can pay with your rewards card. They will also ship it for free.
If you're looking for cuter gift cards, you can order from the
Disneyland website. They also accept the rewards card for payment and will ship for free. And yes, these cards work at WDW,
DCL and Disney Stores as well.
BTW, I have done both the online shopping methods because my local Disney Store is one of the ones which will not allow you to buy gift cards with a rewards card. Yep, it works.