Microsoft account has money but it still charged to card

You'd have 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

I have £18 on my microsoft account and I purchased 12 month gold but there was no option to use this money and it was all charged to my debit card. I had checked settings before I did this and it said that the money on the microsoft account is automatically
used and has to be turned off, how come all of it was charged to my card?

On billing microsoft it just has the points value i paid, no plus charges..

the bank shows pending money charges, but still pending.. no changes so far..

And this card is just for Xbox? yes. I create virtual cards for each service i use .. so i control where the money goes .

@Twistedflax that's what mine says, you ordered from zavvi also didn't you. My card has definitely been charged because the money has left by account it will probably still be in transit for our orders

Let me explain to you How pre orders work.

IF you pre- order a game with a credit/debit card Microsoft will not charge that card till approximately 10 days prior to the game actually being released.

IF you pre-order a game with Microsoft account currency/gift card the money will be withdrawn from that balance immediately.

So if your order is showing as cancelled that normally means that when the time came for Microsoft to pull the money off of the card (approximately 10 days prior to game release) the money probably was not there Microsoft then tries 3 more times to charge
the card and if at that point they still can not get the money they will cancel the order because they never received the money.

Now if your bank account is showing a charge on a certain date for a certain amount you will want to match that up with your order history at account.live.com and see if there is a match to a purchase.

Since Microsoft did not receive the money from the bank and it was declined your bank may have put a hold for the amount for some reason and you would need to talk to them about that hold.