Apple disabled my account and disallowed my credit card!

I'm so angry at Apple now that I don't know where to begin. There were unauthorized in app purchases from my account and I contacted a Apple asking for a refund. They first refused blaming me or someone else in my household did the purchases. I wrote back that no one but me knew the itunes password. I got a reply that they would make an exception in my case and refund me and for that I'm happy. But they also said this: "To prevent further purchasing, I have disabled your account and have disallowed your Credit card from being used on the iTunes Store.". Now its not even possible to install free apps on my iphone since I only get a message that my account is disabled. I contacted them again asking how I could get my account back and credit card enabled again. They said that there was nothing they could do, I had to make a phone call to their support to get help. Should I call them? I'm scared they will be just as bad and unhelpful as the mail support. I just want this solved as fast as possible, actually I regret asking for a refund. If I knew this would happen I would rather have paid the unauthorized purchase than have go through this ****.
I really need to get my account back since I have done lots of earlier purchases that I don't want to lose.

After talking to Apple support over phone, they have now enabled my account, but he couldn't do anything about the disallowed credit card. He said that I should contact Apple again by mail to get my credit card unbanned, so that's what I did. This is part of the reply I got from them:
"-----, Apple takes the security of your account very seriously as you had earlier reported for unauthorized activity on your credit card, so it has been prevented from being used on the iTunes Store.
If you have not done so already, please ask your card issuer to cancel the card and provide a replacement card with a new number."
I never said there were any unauthorized activity on my credit card, there was absolutely no need for them to ban it in the first place. Now they refuse to unban it and suggest that I should get a new credit card (I only have one)? I will not do that, if you do not unban my credit card you lost me as a customer and I will never buy anything from Apple again.
How can I convince Apple to unban my credit card? What should I do? I can't believe how bad support I got by e-mail from Apple. The person I talked to over phone was very nice and helpful, but the e-mail support is really horrible.

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