Can I use money on account for pre order?

Until they release a price and pre-order information, nobody can speculate. You would need the money in your account to be able to cover pre-order.

I have never done a pre order with amazon however I have order games off them and they have come really quick and with no problems....I would recommend them. I am thinking of using them for pre order of games but would like to know if they take the money
out of your account on placing the pre order or do they take the money out of your account on the day they send it....So cheers for any help on this matter............

I have Destiny on pre order with them and can confirm they dont take the money on pre order.

It depends on which payment method you chose when pre-ordering that game. If you used the Microsoft account balance the money is taken instantly, and if you chose your bank account it will take the money about ~10 days before the game releases.

Check this page to see if the pre-order was indeed cancelled:
https://account.microsoft.com/billing/orders#/

Check here to see your Microsoft account balance:
https://account.microsoft.com/billing/payments

And if it was, and no money was taken out, and that says the pre-order was cancelled, you will need to pre-order again or wait until the game comes out.

For further help please contact xbox support.
http://support.xbox.com/contact-us

When making a pre order with a card, payment isn't taken at the time only a week (or so) before the games release. With a pre paid card there is no guarantee the money loaded on to the account will still be available when payment is due, so this is likely
a reason they don't allow pre orders with our paid cards.

As other have mentioned, use the pre paid card to buy Xbox pre paid credit to last in to your account to make the pre order.