Why does Xbox ask for a payment method when I'm redeeming a prepaid code?

Microsoft requires a payment method on file for all Game Pass subscriptions — even prepaid codes. This is because Game Pass is treated as a recurring subscription. When your prepaid period ends, Microsoft uses the card on file to automatically renew. Without one, it may block the redemption. To get around this, try redeeming at https://redeem.microsoft.com and look for a "No thanks" or "Skip" button below the payment form. If that doesn't appear, you can add a card temporarily, redeem the code, and then remove the card from https://account.microsoft.com/billing/payments. You will not be charged during your prepaid period.