Credit Card NOT on Xbox or Microsoft Account - but BILLED

sorry you cannot buy live gold with MS points or currency ONLY with a credit card or other form of payment like paypal or store bough live gold subscription cards sold in stores.

Hello there, this is an easy thing to do. You can access your payment methods online by signing in here and going to settings and payment and billing and edit them, you can
remove them there, however, if you currently are subscribed to anything like gold or game pass you will have to go to your subscriptions and cancel them first. Or alternatively follow the steps below

Note: If you’re trying to the remove a payment option that's tied to a Microsoft subscription with recurring billing, like Xbox Live Gold, Xbox Game Pass, or Office 365, it can't be removed until you change how you pay for the subscription. For the steps
to do this, see How to change your Microsoft subscription payment method and options.

• Remove a payment option online:
  
  Sign in to the Payment options page with the Microsoft account that has the payment option you want to remove. If you’re having issues
  signing in to your Microsoft account, go to Microsoft account help.
  
  Find the payment option you want to remove, and then select Remove.
  
  Select Yes, remove to confirm that you want to remove the payment option.
  
• Remove a payment option on Xbox One:
  
  Sign in to an Xbox One console with the Microsoft account you want to add the payment option. If you’re having issues signing in to your Microsoft account, go to Microsoft
  account help
  
  
  
  Press the Xbox X on a sphere Xbox logo button on your controller to open the guide.
  
  Select Settings Gear-shaped Settings icon > Account > Payment & billing.
  
  On the Payment options screen, scroll right to the payment option you want to update, then select Remove.
  
  Select Yes, Remove to confirm payment option removal.
  

FTW 1997, Since you are attempting to use your friend's credit card, your address must match the address of the credit card. That is why you are getting rejected. Microsoft uses the billing address of the credit card and your address in order to prevent
fraud.
support.xbox.com/.../xbox-live-credit-card-authorization-failure. Try updating your address to match the billing address of the credit card.

The local currency in your Microsoft Account Balance can, at this time, be used to purchase any content directly available in the Xbox Marketplace, including Games on Demand, Arcade titles, Indie games, DLC's, Avatar items, content from Xbox Video, etc.
(Note, it is my understanding that it cannot be used for third-party consumables, such as Hulu rentals, or FIFA points, etc. These would require an actual payment option, such as PayPal or a credit card).

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Gold Memberships and Xbox Music Passes must be purchased with a valid payment option, including credit cards and PayPal accounts. They will accept prepaid credit cards, so long as they are set up to allow subscription payments. Reloadable prepaid credit
cards are commonly able to do this, while throw-away gift cards typically restrict subscription payments.

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Alternatively, you can also purchase Prepaid Gold Membership cards, either directly from www.microsoftstore.com, or through third-party channels, such as GameStop, Walmart, Amazon.com, etc.. Practically anywhere gift cards are sold. Xbox also has prepaid
currency cards available, billed as Xbox Gift Cards. Hope this info helps!

I try to change it on the Microsoft account online I go to my billing information with my credit card with my PayPal with my Microsoft account I go to my credit card which has my Xbox live membership on it but there's no edit so I can edit my credit card