After a lengthy email exchange between myself and a Kobo representative, I still don't have the books I bought with my gift card, nor the money returned to the gift card for the books removed from my Arc and Glo. I was told there was no way for them to look at the transactions on the gift card, in order to see that I had paid for the books. The only difference from when I used my CC to buy books was that, I never recived an emailed receipt from Kobo, showing the book. The gift card was charged and the next day I would receive an email saying "Take a second look at..." whatever book I had bought the day before. I forwarded them these emails to illustrate what was happening, including the "Take a second look at..." email for a book I had bought on the gift card, the night before, that actually showed up in my purchases. I'm assuming there was some error in the software there somewhere that could cause this scenario.
I managed to finish one of the books, because I had turned off syncing with my old Kobo Touch, but as soon as I finished the book, I synced, and watched it disappear from the Touch.
The Kobo representative asked, pretty much, the same questions as above, did you use the same email and such. It's the only Kobo account I have and the books showed up on all my devices, so yeah, it was under the same email.
In the end I told them it made me nervous to buy any more books from Kobo if there was no way to track purchases. (accounting must not be too important, a fifty dollar gift card emptied in to their store and there's no balancing the books, so to say) And their reply was a lengthy instruction on how to side load books from other bookstores. So, in the end, I guess they chose to not have me as their customer anymore.
Torn with leaving Kobo now, I'm a pretty brand loyal individual, as I stated I've had every version of the Kobo, except for the Kobo mini. But, I'm out fifty bucks and scared to use their store again.