Xbox One payment error is an error that usually occurs when you try to make a purchase on your Xbox One. It may mean that the Xbox Live service is temporarily unavailable, you have an outstanding balance on your Microsoft account, your billing information is incomplete, or the country/ region of your Microsoft account does not match with your PayPal account.
1. Set correct Information
Xbox One payment error could be due to Language & Location setting does not meet your physical location. Make sure it is set correctly, so the payment method won't get an error (see instruction below). Also, check billing information if it accurate and Microsoft balance if settled. To correct the billing information, copy your billing statement including the letter case. While for Microsoft balance, please settle it to avoid error.
- Make sure to sign in first.
- Go to the Home screen
- Click Settings > All Settings.
- Select System and select Language & location.
- Select the Location and Restart.
If you have bought a few minutes you may encounter "Xbox One payment error." Or, if are blocked or flagged you may also encounter "Xbox One payment error." If this is the caused wait will be the key. If you have bought a few minutes, wait for 15 minuter while for blocked or flagged wait for 24 to 48 hours.
3. Contact your bank or add a new payment method
If the problem persists, your credit card or your PayPal account might have a problem. Call your bank or create a new payment method.