To replace your Xbox Live payment option, first add a new payment option to your account. Then, you can remove your existing payment option and transfer any associated subscriptions to a new or existing payment option.
On the Subscriptions page, select the subscription that you want to modify and then click Change payment option.
Select the payment option that you want to use from the list of active payment options or select Add a new payment option, and then click Next.
If you chose an existing payment option, skip to the next step. If you chose to add a new payment option, enter the information required and click Next, then select your new payment option and click Next again.
Review the confirmation message and then click Change to confirm the change.
You will receive a message on the screen notifying you if the change was successful.
Next, you can remove a payment option and transfer your associated subscriptions: