Using PayPal

When you set up your PayPal account as a payment option, it is set up just like your Credit Card, so that whenever you purchase something, all relevant information is remembered. This allows you to make purchases without having to enter your billing info
over and over again. There is not an option that I am aware of that will allow you to enter your password when making a purchase. I expect that Xbox left this option out because they allow you to password protect your account to keep others from accessing
the account to make purchases. Remember that the Code of Conduct specifically states that we are not supposed to share our accounts with others.

Sorry, must of been a problem with xbox.com because I'm fine now.

Whether it was your doing or something, I just tried it today and it worked. Thanks a bunch!!!

Greetings, Jason! Thanks for bringing your question to the forums. Can you do me a favor and walk me through the steps of how you are attempting to add PayPal? In addition, you may have a billing issue on your specific account that is keeping you from adding
payment methods. I would encourage you to check
https://billing.microsoft.com or give phone support a call for your region.

Walk you through the steps? It's a workflow-based website. There is one and only one way to get the above error message. I am experiencing the same issue. This level of service (non-existent) for a paid offering is ludicrous and completely unacceptable.
Please escalate the issue to you management (which I'm sure is a *known* issue) and get your paying customers *real* resolution.