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First off, I'm an otherwise very happy Xbox Live Gold member. Instead of buying a points card from a retailer, I made the mistake of buying the points online from Microsoft through the Xbox. I used my gamer tag account and entered my credit card on the TV and I bought 500 points. I got the email confirmation that I bought the points. I then used the points. So far so good. Over the next two days, four other Xbox charges totaling $30 mysteriously appeared on my credit card. Someone bought more points and a game subscription using my credit card info. I called Xbox Live support- their answer was "we don't give refunds." I explained that it's not a REFUND if my account is used fradulently. They still said no. Note that clearly the security leak was with them, as no other fraudulent charges appeared on my credit card...just Xbox charges. I then asked them to delete my credit card info from my Xbox Live account. They said they could not do this. I could not believe this! Given that someone had access to my credit card and they were unwilling to remove my credit card info, I had no choice but to cancel my credit card. My advice- buy the points from a trusted source like Amazon. Don't ever give Microsoft direct access to your credit card info. I hope this helps.
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