Many Xbox Live users have become increasingly frustrated at Microsoft's unclear instructions for editing or removing payment options and credit card details from the system. Gamers might choose to remove their details in order to stop unwanted billing or abuse on hacked accounts, and parents would rather limit the opportunities their kids have to purchase Microsoft Points and longer Xbox Live Gold Memberships. Fortunately, as vague as it may be, it is not difficult to delete your credit card details from your Xbox Live account.
Navigate to the official Xbox website (see Resources) and sign in with your Windows Live/Hotmail ID and password.
Click Marketplace at the top-right corner of your screen, above your avatar.
Click the "My Account" drop-down menu and select "Manage Payment Options".
Edit your credit card details or delete them completely by selecting "Remove" next to the card information.
Follow the instructions to complete the removal process. If you get the message "This payment option cannot be removed at this time. Go to the Payment method information page to view services associated with this payment option." you will need to either add a new payment option or cancel your Xbox Live Gold subscription.
If you want to continue your Xbox Live Gold subscription but would rather not have Microsoft store your credit card details in their system, it is advisable to purchase a prepaid card instead. Microsoft offers Xbox Live 12 Month, Three Month and One Month Gold Membership cards, as well as 4200 and 2100 Microsoft Points cards available for purchase. You can buy these cards online or at selected retail stores and enter the codes on your console or on the Xbox website to activate your account. If you are having trouble deleting your card information, call Xbox Customer Support (the numbers for each region are available on the website) and request the removal of your card. The process usually takes five to 10 days to complete.