Gift Card Redeemed from Amazon not working.

I recently purchased a virtual Xbox gift card on Amazon and redeemed it using Amazon's "redeem on Xbox.com" option. After redeeming the code, I checked my Microsoft account, and the $25 is showing up on my account (I checked through the Xbox One settings),
but when I tried to purchase Sonic Adventure 2 (listed as $9.99 plus tax on the store), my Xbox keeps telling me that I have "No valid payment options on file. Microsoft Account Balances cannot be used in this purchase channel.", which leads me to believe
that the Xbox gift card that I purchased and redeemed doesn't work on Xbox game purchases? I'm confused and want to know whether I just lost $25 because I redeemed it into my Microsoft Account.

:)

 

Can you use Amazon pre-paid gift codes to pre-order games?

Yeah I just purchased a £50 gift card from Amazon and got it working.

 

Xbox One error code: e74337e9-3bff-4507-8f27-5e60fa24615c 2015/01/14

Purchased xbox live gold for 3 months on amazon digital code with gift card, code is not working anymore???

 

In order to use currency on your account to purchase 360 or original Xbox one games, you would have to make the purchase on a 360 console. The store on the One does not see the Microsoft account balance as a valid payment option for those types of purchases.
Otherwise, it should work fine if you try to buy any One content.

 

Hello MrFireBoy12, what Smwutches stated was correct that, you would have to sign into a 360 console.