Cards app keeps asking for "update" info

I was so excited to use the cards app when I got iOS 5.
I set up the card and everything. When I put in the recipient address (in Canada) the price automatically changed to $4.99 which I thought was cool.
It goes through all the steps, asks for my CVV which I put in and when it gets to the authorizing stage it says "there is no enoguh info in your iTunes account. Please go to settings --> store and update your account info".
I've updated everything several times. I've even updated on iTunes on my Mac in case I'm missing something. My CVV never saves, even in iTunes on the PC but it asks for it all the time so I just put it in.
If this doesn't get resolved soon Apple is losing my $4.99 and I'm going with TouchNote.
Someone help please?

Just wondering if you ever got an answer from Apple support about this issue. I sent a card using Touchnote and they said it was sent this morning (created the card last night). Only cost $1.49 to ship internationally...so much cheaper. Card doesn't appear to have an envelope attached though which is a bit of a bummer since I'm sending pictures of family and friends and I'd like that to be somewhat private.

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