Child downloaded $440 worth of in app purchases! What do I do?

Question

I set up up a child account on my old first gen ipad that was mine.  I opened up a child account in his name.  Than on itunes on my mac i set up a monthly allowance.  the monthly allowance showed up in his account.  But than he statred to download in app purchases with his id and his password.  Next thing i know about 2 weeks later, i get a fraud warning from my credit card that $440 worth of itunes was charged.  I looked into it and found on his account multiple $49.99 in app purchases for "gems"!!!!!  I asked him about it and he said evry time i tapped on the buy button, his id came up asking for his password so he entered it. 
Low in behold instead of dening the purchase because his month allowance was used up, it simple charged MY credit card that is associated with MY apple id.  HOW THE HECK DOES THIS HAPPEN?
This was not my sons fault, we both assumed once the credit was used up, it would deny his purchases.
What do i do?
Thanks
Keith

Answer 1

You are not alone, my wife ran up £3,000 worth of charges doing this. However I was aware of what in app purchases could do and also that they could be turned off, but didn't do so because I assumed that she would know different. I accepted this is my fault and took it as an expensive lesson.
Apple's policy on sales of digital content is that all sales are final. If however you wish to appeal to Apple, select the content which is causing a problem and use the 'Report a problem' button in Your Purchase History on your computer.
Currently, if your purchase happens to be your most recent purchase you will need to click the large ‘Report A Problem’ button under the list of previous purchases in order to reveal the ‘Report A Problem’ link for your recent purchase. If your purchase is listed as a previous purchase use the small arrow on the left side of its listing.
Alternatively you can use the receipt email to report a problem.