In app purchases payment type - gift card, loaded in itunes but not found in app

So I just bought two $50 gift cards and loaded successfully. But when trying to purchase in-app, it wont accept payment type (credit card is maxed, hence the gift card in the first place). And so I changed the payment type to "none" in settings, but now it says insufficient funds. How do I spend the gift card monies in the app ?

Do what it told you to do.
Contact itunes support
http://www.apple.com/support/itunes/contact/

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