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Error 838200CE occurs when using PayPal to make a payment on Xbox 360

You see the following error code and message when you try to use a PayPal account to purchase an Xbox Live Gold subscription or a game on your Xbox 360 console:

Sorry, there's a problem with the Xbox service. Try again later.
Status code: 838200CE

If you try to make your purchase directly through Xbox.com, you receive the following message when you try to sign in to your PayPal account:

Unable to complete your request
The reward method that you chose is not authorised. Please use another reward method to request your cashback reward. If you get this message multiple times, contact customer support.
Message 8017

This may mean that there's a temporary maintenance outage on Xbox Live, or there may be an issue with your payment option.

Solutions

To resolve this issue, try the following solutions.

Solution 1: Check the status of the Xbox Live service

If you see any alerts here, wait until the service is up and running and try again:

Xbox Live Core Services: up and running
2016-12-03T19:55:56.2318792+00:00

Solution 2: Troubleshoot your PayPal account

For help resolving issues with your PayPal account, see Use PayPal with your Xbox Live account.

Solution 3: Make sure that your billing information is up to date

Make sure that the billing address for your Microsoft account matches the billing address you use with your credit card company. Also, make sure that your card's expiry date hasn't passed. Here's how:

  1. Sign in to the Payment & billing page with your Microsoft account.
  2. If you don't know your Microsoft account email address or password, use the Lost Account Solution or the Lost Password Solution.
  3. Select Billing info, and then follow the steps to review your billing information.

    Note If there's an error, select Edit profile and then follow the instructions to update the information.

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