Greetings, everyone. If I understand correctly you can purchase points successfully via your console, but you cannot redeem them via Xbox.com. Is that correct? Can you also confirm that you are encountering the same error message as the OP posted?
Just to cover all our bases, can you please also log on to https://billing.microsoft.com and double check to make sure everything is configured correctly with regards to your payment methods according to this sticky: forums.xbox.com/.../153161.aspx ?
Thanks in advance! I'm standing by if you have any questions.