Family sharing not sharing payment information

Family sharing not sharing payment information
We have two iPhones on iOS 8. Previously my Apple ID was logged into my wife's phone for iTunes and app purchases to share purchases (she's had her own apple is for iCloud all along) . I set up family sharing, on my phone first. I'm the organizer. I invited my wife, switched her Apple ID in settings in iTunes and app purchases to her own Apple ID. Both of us can see we are in the family in iCloud settings. But in the iTunes part it looks like normal, with seperate accounts. If we view purchase in the App Store both accounts are listed (and looks like both accounts show all the same apps that I've purchased previous to setting this up).
Is that right?
More importantly when I go to make an iTunes purchase on my wife's phone, it doesn't try to use any shared payment. It wants to update HER credit card on her account.
My phone says the credit card is shared.
What setting have I missed here?
And I keep seeing this question asked but no clear answer. Will she loose access to any apps or music purchased before the family? They all show under her account now. Apple said somewhere that a legacy account would be allowed. I'm afraid to play too much with it after hearing people are getting locked out for a year.
Thanks for any help!!

Your purchases will be charged against the Organizer's charge card on file, but they will reside under the Apple ID that you are purchasing them under (so if later, you were to leave Family Sharing, they would be "owned" by your Apple ID). If you have a gift card on file for your Apple ID, it will take the funds from the gift card first before going to the Organizer's charge card, but the entire set-up of Family Sharing is one that is designed to charge all purchases against the Organizer's card on file.
How is the set-up invasive, exactly? Family Sharing is primarily designed for families, especially ones with small children. The FAQs and ad pages are very clear about the fact that the Organizer pay for all purchases:
https://www.apple.com/icloud/family-sharing/
Cheers,
GB

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I am trying to set up a new ipad for my daughter and was delighted to learn about 'Family Sharing'. That was until I had to add my payment information. I have updated my payment information on the web as prompted too but when I try to log back onto the device, I keep getting the same error message. The message is that PayPal is not a valid form of payment with Family Sharing and to enter new credit card info....which I have done to no avail.
I tried customer service chat but that was pointless.
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What happens when you try to update it, do you get any error messages ... ? We are fellow users, unless you tell us what happens it makes it difficult for anybody on here to help.
If you are trying to add a debit card then I don' think that they are still accepted as a valid payment method - they are not listed on this page and there have been a number of posts recently about them being declined
If it is a credit card then is it registered to exactly the same name and address (including format and spacing etc) that you have on your iTunes account, it was issued by a bank in your country and you are currently in that country ? If it is then you could check with the card issuer to see if it's them that are declining it, and if not then try contacting iTunes support and see if they know why it's being declined : http://www.apple.com/support/itunes/contact/ - click on Contact iTunes Store Support on the right-hand side of the page
If it's something else ... ?

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On iOS' 4.??? through iOS 7.1.2, my iPad has been set up with my wife's Apple ID (our "master" one). I had my iCloud acount on it for all of my messaging and what not. After I updated to iOS 8 and set up family sharing, any app updates that come along tell me that the (free app) was "either refunded or purchased with another Apple ID". Oh really... Well then I think that it may be a bright idea to delete the app and re-download it with my Apple ID. Nope... Now it's telling me the same thing and won't let me download it at all. Not with mine, not with my wife's and not with my son's! What a crock. Now I have lost 3 apps that I regularly use. SMH...
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sharing:
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Hi kathyfromcelina,
I'm sorry to hear you are having these issues with your account. If the update to your billing information does not appear to have applied correctly, you may want to double-check the update steps as outlined in the following article:
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