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I have tested twice with gift card purchases made when the gift card is a product purchased by a customer. In both cases, the To and Email fields for the recipient were entered.
I received the notifications of the purchase the store admin and as the customer, but I never received an email to the recipient email address to notify me that someone had purchased a gift card for me.
However, when I manually created the gift card in the dashboard and assigned the recipient email address there (not in the store), I did receive the recipient email.
Does the recipient email not work in the free version of the plugin?