Stepson (12M) spent $700 on XBOX with my (34M) card!

So my stepson, like most kids his age, is really into video games. His favorite is Fortnite (maybe you've heard of it.) A little context before I continue the story. Fortnite is a free to play game that has made a gajillion dollars. How, you may ask? The game sells items such as expansions, charactor skins, weapons etc. to make money. More on that in a minute. His birthday is in April so I purchased an Xbox Gold membership so that he can communicate with his friends while he plays. The membership is about $65 a year, so no big deal. I used my card to pay for it with the understanding that he would not purchase anything without my permission. This, of course was my first mistake. A month later he calls me up to his room to show me this "super cool" and "super rare" skin for his character. I look at the price and see it costs $25!! Almost half the cost of an entire new game. So of course my answer was no. Over the next couple of months he kept asking for add-ons and what not. I said no to each one. Then this morning I'm talking with the wife about our upcoming expenses and I see this curious charge on XBOX for $10.78. Now admittadly I don't check my checking account that often (my second mistake), so I scrolled down and found more and more charges. I pulled out a notepad and added them all up. The final tally was close to $678!! I logged on to his XBOX account and looked at his past purchases. And sure enough, he purchased 3 Fortnite expansions (which are like $30 a piece) and 4 $65 games! My wife and I are of course furious. We're racking our brains on what the next steps should be. Obviously we are taking the Xbox away. He won't see it for the remainder of 2018 and possibly longer. For me, what more important then the money is that he learns from this. I'd be curious as to ways we can get the message across to him. I'm thinking we can take him to Gamestop with the Xbox and have him sell it. And/or have him do chores to work the debt offI. 'm wondering if anyone has any other suggestions on how best to punish him so that he understands the seriousness of this, feels the pain (figurative not literal) and more importantly learns from thisI posted this on /r/relationships but it was pulled for not meeting their guidelines (which is fine). I did recieve a lot of great advice before it was pulled and I apologize for not being able to respond. Thank you to those who responded. A couple of caveats: I will be contacting Microsoft to see if any of the money can be refunded. Long shot, but the worse they can say is no. IF (and thats a big IF) my stepson ever earn the right to his xbox back I will make future payments with giftcards to protect my account*TL:DR: Stepson spent close to $700 on Xbox games with my card. How best to punish him so he learns from this? via /r/Parenting https://ift.tt/2Q2iRMM