can i add paypal as a payment method without entering my credit card

Hey ben

Thank you for taking the time to post this on the Xbox Forums. We understand that you are currently experiencing difficulties with being able to add a payment instrument onto your account.

Have you had a chance to attempt to add this PayPal option online via the
Manage your payment section? This may allow you to add it correctly in case you are having trouble from a different platform.

Give this a try and let us know if this works for you!

The website is currently only set up to deal with purchases via credit card and PayPal. Even if something is free, the site requires a payment method because it only sees that an item is being "purchased" and needs some sort of payment method on file. You
can always get these on the console without the need to enter a payment method.

The option is there, and I have Paypal set as my payment menthod, but I receive the message that there is not a valid payment method selected, and it directs me to enter credit card information.

Depending on where you are located, PayPal may also be an option. If so, try attaching the credit card to the PayPal account and then use PayPal as your payment method and then you should be able to select that card for payment. If it doesn't work either
place then you at least know its the card. I have always used a prepaid credit card for every purchase on my Xbox and I have never had a problem. And I've used both methods as I've described. But that is another way you can to try to process the same purchase
using that card for payment.

Sometimes with these prepaid cards you must register the card and enter the address you want to use for the billing address. Without the correct billing address any payment will fail.

If PayPal is your only payment method then you will need to make sure you have an active credit / debit card on file on the Microsoft Billing site in order to be able to successfully use PayPal with the XBOX Live services. You may want to remove your PayPal
account completely and make sure there are absolutely no old payment methods on file. In this sort of situation I would remove all payment methods from the account and add a new payment method if possible (verified credit card/debit card - not prepaid card)
and then try to make the purchase.