Free Trial CHARGED me.

You'll need to contact support and speak to billing. 1-800-4my-xbox if you're in the US/Canada or http://support.xbox.com/contact-us

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As i said in the initial ticket, the payment did not go through, given i didn't have money in my account. Do i pay it, and then do the refund?

Hi and thanks for reaching Microsoft Xbox gamer's community. My name is Josef.
I'm an Independent Advisor and a Microsoft Xbox user like you.

Hope you're doing great today despite this Artur

Exists the possibility that you forget to turn off the recurring billing. Please double check if it's turned off to avoid more charges in the future
https://account.microsoft.com/services

If you already has been charged for this subscription and the transaction appears in your order history
https://account.microsoft.com/billing/orders

In this case you can try asking for a refund using one of the methods below:

A. In the subscription tab select manage subscription > once there select cancel
If you're eligible for a refund the system is going to let you know that
If not, you can try the option B. Before canceling the subscription

B. Fill the refund form here: (this doesn't guarantee a refund)
https://support.xbox.com/forms/request-a-refund

In case your refund gets denied, you can actually file an appeal for the results of the refund.

All you need to do is to reply to the email that was sent to you by the refund team, you can reply with a detailed explanation so they can review your request again and grant you a possible exception.

Hi, sorry I thought that you was charged for the subscription once you added funds to your payment method

And yes, in this case the best option is pay the subscription and ask for a refund
Because when you have a pending balance, your account will be restricted and you're not going to be able to make purchases in the Xbox store.