I am very reluctant to give my credit card out due to the ease hackers are able to penetrate various well known sites. I prefer PayPal so that if it is compromised I will know quickly and can take action. If 5 or 6 sites have my info, notification or a report of a breach may not be as prompt. So, from what I see Microsoft wants a only a credit card for their "cell-phone like" points?????

If you are reluctant to give you cc to Msft, you can buy Microsoft Points Cards on retail shops.

You can purcahe the DLC with paypal or credit card directly from the GFW Marketplace app, or xbox.com