I have already spoken with customer support and they suggested I check these boards... I read the sticky and pasted the questions along with answers below. Hopefully someone can help me out. As far as my issue -- I can't use CC nor PP, I can however use pre-paid cards.
Now for the questions.
What are you trying to purchase? MS Points
What error code or message are you receiving (from the console)? Your payment instrument could not be authorized. Please contact your provider, or try a different payment option. I get the same message on both the console and PC regardless of the payment option I use. I have contacted my provider and they do not see a transaction (no rejection). I can use my CC and PP on different sites without any issues (I tested them out the same day I tried buying MS points).
What region is your account? US
What region do you physically connect from? Europe (Germany). I do however have the capability to VPN back to the US from my PC. So logging in to the website from a US IP hasn't made a difference.