What is wrong with Paypal and Xbox... why do they not play nicely?

I can add my Paypal account just fine, but I can only make one purchase with it. Any subsequent purchases result in an error of 'your payment instrument could not be authorized.'

My workaround until now was to remove the paypal account, and then add it again and make a new purchase, but after doing this about 5 times, my billing account was locked, and after talking to support, they removed the block and told me I needed to make sure that all of my billing information matches with xbox.com/account and Paypal. All of my billing information matches to the case of the letters, but once again, after adding Paypal and purchasing points once, I again cannot purchase anything afterwards.

I'm debating if I should remove and re-add to get more points in my account, because they're probably just going to lock my damn account again, thinking I'm some crazy person doing strange things by adding and removing my payment instrument every time I make a purchase.

 

I am using paypal with only money in the balance - I do not own any credit cards, and with the PSN fiasco, I have no interest in making a credit card for my own safety. Do you think this is some sort of messed up bug where the details paypal gives xbox is only good for one purchase or something, since it's not tied to a credit card?

 

The other weird thing is that I can only purchase up to $50... anything I try to buy with Paypal over $50 on xbox.com automatically fails. weird.

 

Anyone have any help they can offer, or am I stuck with calling up MS every other month to have them unlock my account because Paypal simply does not work nicely with xbox?

 

Question Info


Last updated July 4, 2018 Views 1 Applies to:

i just today i have the same issue, i buy games, points and movies with my paypal account, and i never have this type of issue in any other sites, what's wrong with xbox and paypal? we're real buyers, we don't have modded our accounts and we don't use illegal games, and looks like xbox puts walls for us

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Are you having issues with other payment methods as well, or is this just for Paypal?

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I just called PayPal, after my financial transaction did not work ( twice !) and the paypal account was limited and I had to change my password at paypal and their security question.

At the (paid) Paypal hotline I was told that there is due to the SEGA-Hack an internal Paypal policy that payments to Xbox Live (and probably other gaming services) in connection with direct transaction from ones banking account (via Paypal) is categorized as a high-risk transaction and prevented. It should work if you first transfer money to Paypal's online account. Now that the weekend is at the door (and no banking transfer takes place so quickly), I can shop in this way probably next week.

No wonder that Microsoft cant help, probably they don't even know about such Paypal policy. I'm probably the first who has asked Paypal  by an estimated 10 € costing hotline call :-(. I had to listen to canned music for a long time ...

Greetings

Peter (Germany)

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Alternatively you can purchase Microsoft Points from retailers and even online stores and have them shipped to you. Certain places for example Buy.com just recently had a deal via eBay for 4000 Microsoft Points being $40 bucks with free shipping, can't beat that, I took advantage of that :).

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