It counts. But make sure after the RedCard 5% discount, you are still over $100. Official rules indicate you don’t need to be but my experience has been that it didn’t work without being over.
This seems to be extremely hit or miss, I just placed two orders for $100 GC each minutes ago that were under with the discount and almost instantly as the email came through, the Target Circle step was credited to my account and honestly have never had the issue others are describing where it is delayed.