Why does microsoft rewards spotify 3 month-free gift card needs credit info?

Question

Honestly, Today I tried to redeem a 3 month spotify gift card from microsoft rewards but it needed either your paypal, which I dont have, and your credit card information, which I am not willing to give. It claims that it is free but when you actually get the code and finish it it immedietly charges you. wheres the "free" and fun in that? That is honestly so horrible microsoft. Maybe its not even microsofts fault its spotifys fault. if they dont fix this I will stop using spotify. Any tips and solutions to help fix this problem? I havent redeemed it [moderator's note: moved from Microsoft Edge | Other | Windows 11]

Answer 1

Hi Janson Chen, 

I can understand why this feels frustrating. When an offer is shown as “3 months free,” it’s reasonable to expect that no payment step would feel like a charge up front. 

Have you had a chance to check the AI answer yet? It includes some excellent advice. In addition, I’d like to share a few extra details. 

Since you have not redeemed it yet, please check out Spotify Terms & Conditions, the current terms say: Individual plan only. The 3-month free offer is available only to users who are new to Spotify Premium and is available until January 21, 2028. A 2-month free offer may be available only for users whose Premium ended more than 30 days ago and who have not redeemed a Spotify welcome back offer in the last 24 months, subject to availability. After the trial, the subscription renews at $12.99/month, unless canceled. Cancel anytime.  

If you decide to redeem it, it may also help to set a reminder in any of your reminder app or calendar a few days before the trial ends, so you have time to cancel before any paid renewal begins. 

I hope this information helps clarify how the Spotify offer works and makes it easier for you to decide whether to redeem it. Wishing you a great experience with Microsoft Rewards and enjoyable listening on Spotify. 

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Answer 2

Promotional “free for X months” offers from services like Spotify commonly require a valid payment method for two main reasons:

1. Subscription setup and auto-renewal
   The offer is usually structured as a subscription with a 0-cost (or discounted) trial period followed by paid months. To create that subscription, Spotify needs a payment method on file so it can automatically charge when the free period ends. That is why the flow asks for PayPal or credit/debit card details and why charges can appear immediately after the trial if cancellation does not occur in time.
2. Fraud prevention and eligibility checks
   Requiring a payment method helps prevent abuse (for example, repeatedly creating new accounts to stack free trials) and lets the provider verify that the account is tied to a real, billable customer.

From the Microsoft side, the key points in the provided terms are:

• Microsoft account balance and gift cards are not cash or cash substitutes and cannot generally be used for certain in-app subscriptions or purchases, except where required by law. This means many third-party subscription trials (like Spotify) are handled directly by the partner (Spotify), not as a normal Microsoft Store purchase, and the partner’s rules for payment methods apply.
• When using Microsoft account balance or gift cards at participating stores, the balance is deducted for purchases, but Microsoft does not control the partner’s requirement for a credit card or PayPal when the partner is the one providing the subscription.

Because of this:

• The “3 months free” part is typically accurate in the sense that the first 3 months’ subscription fee is waived, but only if the offer terms are followed and the subscription is canceled before the first paid renewal date.
• The requirement to enter card/PayPal details and the subsequent charge behavior are driven by the Spotify offer terms and billing system, not by Microsoft Rewards itself.

Practical options:

1. Do not redeem if unwilling to share payment details
   If providing a card or PayPal is not acceptable, the safest option is not to redeem the Spotify trial reward at all.
2. If already redeemed but not activated on Spotify
   As long as the code is not used on Spotify’s site/app, no subscription is created there and no payment method is required. However, once redeemed into a Microsoft account, the reward or associated value is generally non-refundable and non-transferable, and cannot be converted to cash or moved to another account.
3. If the subscription was started and an unexpected charge occurred
   • Check the Spotify account’s subscription page to confirm the plan and renewal date.
   • Cancel the subscription there to prevent further charges.
   • If a charge appears incorrect or unauthorized, contact the provider’s support (Spotify for subscription charges; Microsoft only if the charge is clearly from the Microsoft Store or Microsoft account balance).
4. Future Microsoft Rewards redemptions
   For rewards that are pure Microsoft Store credit or gift cards, no credit card is required to hold or use the balance, but:
   • The balance cannot be used for certain in-app subscriptions or to obtain cash or cash substitutes.
   • The balance is non-transferable between accounts and cannot be converted to another currency.

In summary, the requirement for credit or PayPal and the post-trial charge behavior come from how the third-party Spotify trial is structured as a subscription, not from Microsoft Rewards itself. Avoid redeeming or activating the offer if sharing payment details or managing auto-renewal is not acceptable.

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References:

• Microsoft gift cards terms and conditions
• Taxes and fees when using your Microsoft account