Itunes charged credit card instead of gift card for own ipod app (Australia)

Question

I have sufficient credit on my gift card. The T&C conditions of the gift card allow the purchase for my own ipod. Why then was my credit card charged? This has not happened before as all other purchases came off of the gift card including purchases made after the app was bought. Thanks for your help!

Answer 1

Same problem. So I contacted apple with this question:
My main iTunes account has credit (because I've redeemed gift cards on it) but when I try to purchase anything in the store, it asks for a credit card.
I have another iTunes account that has credit and a credit card, and anytime I buy anything, it bills my credit card.
How do I purchase using the iTunes credit that is on my account? I don't want anything billed to my credit card, so I just haven't been buying anything on iTunes. But there are some apps for my iPod Touch that I'd really like to be able to purchase.
Thanks!
And received this reply:
...I understand that you are asked for billing information even though you have store credit. I can certainly appreciate you would like some assistance, and I would be more than happy to help you out with this today.
I'm sorry you weren't able to make a purchase using your store credit. To purchase items on the iTunes Store with your store credit, your account information in your user profile needs to be corrected. I'll walk you through this process to get you back up and running in no time.
1) Visit the My Apple ID website at:
http://appleid.apple.com
2) If the site is not displayed in your preferred language, click the Change Language link in the upper-right corner, type the name of your language in the field that appears, then click the Save button.
3) Click the "Manage your account" link.
4) Type your iTunes Store account name (which is your Apple ID) in the Apple ID field, type your password in the password field, then click the Sign In button.
5) Click "Addresses" in the column on the left. If you have multiple shipping addresses, remove any out-of-date or duplicate addresses by clicking Delete. Also, make sure the state or province field is filled out correctly for each address. To edit an address, click Edit. Edit all of your shipping addresses and make sure the appropriate state is selected in the State drop-down menus.
6) Now click "Phone Numbers" on the left. The area codes should be in the area code fields and the phone numbers should be in the phone number fields. If an area code is missing, or if it is in a phone number field, your account information may not save properly.
7) Make any other necessary corrections, then click the Save Changes button.
8) Click Log out in the upper-right corner.
When you make your next purchase on the iTunes Store, you will be asked to review your billing information. At this point, you can change your information or simply click Done at the bottom of the screen to proceed. Once you click Done, you should be able to purchase on the iTunes Store using your store credit.
And it worked the next time I bought an app on my iPod Touch! It was weird that it had my "Primary Address" and "Shipping Address" - though they were the same, I deleted my shipping address, and moved my "evening" phone into the "mobile" phone section, hit save, and problem solved. Weird that it was an address thing (I'm assuming) - perhaps the multiple addresses confused the billing process. It didn't ask to review my billing info when I bought something, but it used my store credit. Yay!
Hope this helps!