We're excited to announce that we've fully migrated the Xbox Forums to their new home, here on the Microsoft Community forums!
As of today, going to forums.xbox.com will redirect you here to the Xbox area of the Community forums. We've moved all of your existing threads over so you can continue and start conversations with the new forums experience.
We sincerely appreciate the feedback you have provided over this transition and can't wait for you to check out the new Xbox Forums!
The local currency in your Microsoft Account Balance can, at this time, be used to purchase any content directly available in the Xbox Marketplace, including Games on Demand, Arcade titles, Indie games, DLC's, Avatar items, content from Xbox Video, etc.
(Note, it is my understanding that it cannot be used for third-party consumables, such as Hulu rentals, or FIFA points, etc. These would require an actual payment option, such as PayPal or a credit card).
Gold Memberships and Xbox Music Passes must be purchased with a valid payment option, including credit cards and PayPal accounts. They will accept prepaid credit cards, so long as they are set up to allow subscription payments. Reloadable prepaid credit
cards are commonly able to do this, while throw-away gift cards typically restrict subscription payments.
Alternatively, you can also purchase Prepaid Gold Membership cards, either directly from www.microsoftstore.com, or through third-party channels, such as GameStop, Walmart, Amazon.com, etc.. Practically anywhere gift cards are sold. Xbox also has prepaid
currency cards available, billed as Xbox Gift Cards. Hope this info helps!