I had just the opposite experience...
Yesterday, I went to Target and bought a $140 Target gift card using my PayPal Debit card. This will net me a $1.40 rebate from PayPal.
Then, I used my Ebates app on my phone to access the Target website. **I KNOW THAT GIFT CARDS ARE NOT ELIGIBLE FOR A REBATE**, but it was the easiest way to access the mobile website. I ordered $150 in Disney gift cards and used the $140 Target gift card to pay for them. The 5% RedCard discount was applied and I used my RedCard for the other $2.50.
Imagine my surprise when I got a push notification from Ebates that I had just earned $3.75 cash back for my purchase at Target

.
I got an e-mail today from Target that says my order has shipped so everything worked out pretty well for me

.