I have bought an Iphone 4 for my daughter from the apple store, I am trying to use a giff gaff sim which has been activated and has credit on it but the phone does not recognise the sim card

I bought an Iphone 4 for my daughters birthday from the Apple shop, I am trying to use a Giff Gaff sim card which has been activated and has credit on it but the phone keeps giving me the message  "please use a compatable sim"

Read here:
http://support.apple.com/kb/HT5014

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