Why can't we use Paypal Credit when buying games?

My opinion is that maybe they're worried that some users may abuse this method by preforming "bill me later" then deleting their PayPal account.

Thank you for your concern and have a great day!

Can't agree here. When buying from store options are to use PayPal which the account linked to that is seperate or a credit card that is associated to the ms account. If he selected to pay with PayPal and wrong accounts were charged, well that's on him for
having the wrong account connected. I've got a card and paypal set up and no issues have come about when I use paypal.

Can you preorder an upcoming game using ONLY xbox cash or gift cards without having a paypal, credit or debit on file with MS?

If so, then why can't you dl say, a free avator item without giving MS your paypal, credit/debit info?

Dear gwyther I have tried to have positive funds on my account multiple times when adding my PayPal option to myxbox and I still get the same error idk why you guys have the option if the user can't even use it without a credit or debt card on the PayPal
account I hope you guys can fix this because I would like to dl my games instead of buying the disks but if I can't without having a cc or debt card I might as well just use my ps3 or wii

Do you mean you bought credit ?

If so the credit in your wallet can't be used to buy xbox live gold,you need to buy an actual subscription,either via credit/debit card or paypal or by buying a gold subsctiption card from a shop or online retailer.