What's so stupid about that? Cash advance is much cheaper to process for Amazon Payments and I see all the valid reasons for a for-profit entity to minimize its costs.

Or it's "stupid" that for-profit Amazon doesn't want to let you take advantage of it? Let me put this way - customers whose only goal is to meet their min credit card spend through sending money to relatives are a bit ... outside of Amazon Payment's target audience. Amazon have to live with having such customers in the mix. But if I were Amazon and there were valid ways to filer out such customers, I will immediately jump on this opportunity.

Many seem to forget that Amazon is a for-profit organization not a charity.