This is a feature that thousands of businesses need around the holidays. My company relies on sales to stay in business and every year we have hundreds of customers email us about how to guy a gift card for a friend or family member. This is a feature that MUST be offered soon.
Mercer Publishing commented
The current process does not apply the coupon code for the whole order (including shipping and taxes) and, if the gift card/coupon code is for more than the order, the gift card/coupon becomes null and void after redemption, even if there should be a value left on it.
Peter Brown commented
It's possible for it to work like that, however wouldn't you want to keep track of all your codes separately for billing purposes? And what happens when you already have multiple coupons going on at once? Is there a limit, and what happens when you reach that limit, no more codes?
Couldn't you simply use a coupon code? If a customer wants a $50 gift card, set up a coupon code for $50 off. The customer buying the gift card pays the $50 and the customer using the gift card gets $50 off their order.