Much to the joy of Xbox lovers, Microsoft eventually made a long-awaited change to its Rewards program that offers more control over how you redeem your Xbox Gift Cards. It’s worth pointing out that previously, you could only redeem their points in fixed increments—typically $5, $10, or $25.
However, thanks to the May 2025 update, you can now choose a custom amount between $5 and $100 when redeeming Xbox credit through Microsoft Rewards. On this very note, let’s learn how to redeem a custom Xbox Gift Card amount:
- To get going, launch the Microsoft Rewards dashboard in your browser.
- After that, make sure you’re signed in.

- Then, head over to the Rewards Catalog where all redeemable options are listed.

- Now, look for the Xbox Gift Card section and click on it.
- In the updated interface, a drop-down menu will appear, showing the preset amounts like $5, $10, and so on.
- Unlike before, there’s a new “Custom” option.
- Hit this very option and you’ll be prompted to enter your own desired value. For example, if you only need $12.75 to complete a game purchase, you can enter that exact amount instead of overspending with a $15 card.
- After entering your preferred amount, click “Redeem Reward” to confirm. The gift card balance will be immediately added to your Microsoft account, and you can then use it on Xbox games, add-ons, subscriptions, or other digital content.
Wrapping up…
And that’s pretty much it! From what I can tell, this change is a welcome improvement for gamers who want to use only what they need, especially during sales or when managing a limited number of points. It’s also incredibly useful for parents who want to give kids a specific spending limit or for users trying to top up their balance without using up all their rewards at once.
In addition to this great new feature, the May update also brought Retro Classics to Xbox, reintroducing nostalgic favorites from earlier generations. Plus, GeForce Now is now integrated into the Xbox app, and new tools have been added to the Game Bar for enhanced gameplay tracking.
All in all, this update adds more flexibility and functionality for Xbox users—both in terms of spending and playing. Having said that, feel free to share your feedback about this new add-on in the comments section below.