Post code incorrectly formatted

You can still run into problems doing that, as your IP can cause issues down the line. It is not recommended to change your location to bypass measures.

Your payment method has to tie in with your billing address and location.

you will have to change your xbox location / region to match you billing information

Well, it's obvious you *don't* have the right postcode, according to that pic. Perhaps I've missed something, but it just looks like a random string of numbers! The way the cursor is displayed kinda suggests that you need ANOTHER number... whenever I've
done online banking through my Xbox One, this 'glitch' happens if I'm trying to input a passcode while using my controller. The problem gets sorted once I connect my keyboard and the cursor can move freely again. So weird.

If you are in the States it might require the zip +4 format.

For example 00000-0000

Good luck