I wonder if they would be so quick to crack down on a multitude of legitimate transactions? (I.e. the guy that buys a soda or snack from a vending machine everyday, 99 cent cup of coffee, maybe using Uber/Lyft GCs for your daily commute and leaving only a few cents to pay via CC...)
I can say that I've used it in Israel to purchase a 1 shekel BuyMe GC via PayPal - never heard from Citi or BuyMe. Was not assesed FX fee either, since the fee was probably under a penny.