I have seen other posts with this same problem dating back over six months, but there does not seem to be any evidence of a solution, or even an acknowldgement from Microsoft of the issue. I am posting to make sure that M$ is aware of this problem and to see if any progress has been made.
Problem: After having a functional Live account for years, I suddenly was presented with the following issues:
1. Cannot use any existing cards to make purchase on xbox console or on xbox.com. The error message on console I states "Sannot authorize payment method...' while on computer it states, 'Your payment instrument could not be authorized. Please contact your provider, or try a different payment option.'
2. Cannot use Paypal to make purchases on either xbox console or xbox.com Same error message as above.
3. Cannot add any new cards on xbox.com. I repeatedly receive error message stating 'invalid credit card number'
I first experienced the problem over a week ago, and have since spent hours with xbox support to no avail. I have tried the following solutions:
1. Verified xbox account has no holds or issues with Microsoft.
2. Tried 3 different cards from 3 different financial institutions, and checked that there are no holds or freezes on cards.
3. Waited well over 72 hours with no account activity to ensure there is not a fraud lock on my xbox account.
4. Cleared the system cache and marketplace cache on my harddrive.
Note, that I have used these cards successfully in the past on Live, and I was currently able to still add and use them on a different Live account on my box and to make a successful purchase of points. I did this while on the phone with a support supervisor to demonstrate that it is not a problem with my card but is something on M$'s end, something specific to my account. Interestingly enough, I am still able to purchase xbox games on my windows phone. Additionally, I have checked everything else in Mister Gwyther's thread on the topic of being unable to purchase content.
I feel that I have demonstrated far beyond a reasonable doubt that there is not an issue on my end of things, and that there is some problem with my live account. I am hoping to get some response on this issue. After first bringing in a supervisor to throw every excuse in the book at me that could possibly shift the blame to me (despite that I had done my homework and had ample evidence to the contrary), support finally admitted that things on my side look perfect to them, and that they cannot identify the problem. The issue was then escalated, and I am awaiting a reply (for up to 2 weeks apparently). Can any of the other people who have posted on the forums with this same issue and have had it escalated with support post if you have received any response and what it was? Thanks!