This article describes why Microsoft requires a credit card when you subscribe to Xbox Live.

You must have a credit card to subscribe to Xbox Live. This requirement is printed on the Xbox Video Game System box under the system requirements.

You must provide credit card information to create a new account for Xbox Live for the following reasons:

•	When you create an account on Xbox Live, you must accept the Terms of Use. The Terms of Use is a legal agreement. You must be at least 18 years old to accept the Terms of Use.
•	As part of The Terms of Use, you agree to the billing cycle that automatically renews your Xbox Live subscription. Microsoft requires a credit card for this automatic subscription renewal.
•	Microsoft applies all premium content charges that you purchase to your credit card.
•	Microsoft uses the credit card information as a security measure to help verify that you are the owner of the account.