Canadian purchased digital gift for American, unable to redeem

Would like transfer fund into my grandson Microsoft account, it not family account.

Hello, you are unable to transfer the funds directly to your grandson. You may however purchase a digital gift card that will provide a code that can be redeemed on the Microsoft Store, directly from your grandson's Xbox. I have provided two links. One in
which you can purchase the digital gift card, and another that shows how to redeem codes.

Digital Gift Card

https://www.microsoft.com/en-us/p/microsoft-gift-card-digital-code/cfq7ttc0k61w

Redeem Codes

https://support-origin.xbox.com/es-EC/billing/prepaid-codes/redeem-prepaid-codes

Hi Trolencito!

Thank you for your post. If an item is sent as a gift from another region the item will not be redeemable. Since the region based content is unable to be redeemed, the purchaser of that gift can

Request a Refund for the item purchased.

I hope this information helps, thanks again.

No. You and your friend are in two different regions, so gifts cannot be redeemed from another country. You could purchase an American gift card with the required funds to purchase the add-ons, and give your friend the gift card, so he/she can purchase the add-ons themselves.

Hello everyone,

Thank you for contacting the Xbox Support forums. If you are unable to redeem a digital code, please view Troubleshoot gift card and code redemption. If you have already attempted all the troubleshooting tips suggested, visit Get help with a digital code or gift card.

This thread will now be locked.

Thank you,

-Tali

As Zatomas said it can be used for anything though be mindful as well that gift cards or digital gifts can only be redeemed in the region they were purchased in.