I got charged $4.99 for a free app(Vocabulary HD Free) listed as free in app store..Hows that even possible

Hey,
i was browsing through my ipad. When i saw an app (Vocabulary HD Free) which was clearly listed as FREE. So i clicked on it to install it then it took me to my credit card page tellin me to confirm my credit card information as it said it was incomplete. So i filled in the required information clicked next and next thing i know is that i got a message from my bank saying i have been charged $4.99.
So what happens now? Does the developer compensates for this misunderstanding?
I have been using apple for the past 5 years now (almost) and this is the first time this has happened to me.. this is so absurd..

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