I'm electing the option to pay my fees with my federal return, but then its asking for payment method to pay, its not letting me proceed unless I enter a payment method.

TurboTax keeps a payment method on file as a backup in case your tax refund is not sent to you.  There can be a lot of reasons why the tax refund shown on your return might not come to you - you could have made a mistake on the return, you could owe back child support or taxes - so TurboTax is just covering all the bases.  As long as your tax return is correct then there will be no problem.  

@hmoreli