merchants love them too! Because there are a few options with gift cards:
-forget you have it or lose it, or never go to the store. The store gets money and don't have to deliver any product!
-you buy something with it, but don't spend it all. So the store gets a free buck or five.
-you go in and buy more than was on the card. Hey, money is money!
I kind of like gift cards, I have some Moe's (food place) cards I'll be using at college. When those run out, I'll stop eating out
Otherwise, I much prefer cold cash. Sometimes I'd like to buy something and I have a gift card for a different hobby. Argh.