I redeemed a 40 dollar gift card as I was setting a new account it show that the 40 is there but it's not a payment option. Help please?

What do you mean 'it's not a payment option' ? And how did you create the account ?

Unless you followed the instructions on theis page when creating an account : http://support.apple.com/kb/HT2534

then you will need to enter credit card details before the account can be used to download any item from the store - you should then be able to remove the card's details.

As long as you are buying content for yourself (you can gift from your balance) then your balance should be used up first before your credit card is charged : http://support.apple.com/kb/HT5582