You see the following error code and message when you try to redeem an Xbox Live Gold membership prepaid code or token:
The payment option can't be used for this purchase. Please select a different payment option or add a new one.
This error message occurs when you have an active membership but auto renewal is turned off, and the payment instrument that was used to purchase that membership has been removed from your account or is no longer associated with your membership.
Because the payment instrument has been removed from your current membership, you will not be able to add a prepaid code or token for a membership while your current membership is still active. You must wait until your current membership has ended to redeem the token. Membership tokens do not expire. To find out when your membership will end, sign in to your Xbox account and tap or click Subscriptions to view the end dates for your current memberships and subscriptions.