Problem with iTunes family sharing payment & app licenses

Hiya,
We're using iTunes family sharing with my wife since iOS8, on our iPhones (4S & 5, both with latest iOS). My account is the "Organizer" and my wife has Parental access (so she can use the same payment method, my credit card).
There are a couple of shared apps we use - I purchased them originally and they are available for her to use via family sharing. Apart from the early days' hiccups with iOS8, we had no issues with this setup, that is, until yesterday. All of a sudden, when trying to access the shared apps, she started to get error messages like "this app is no longer shared with you" and the like.
We tried the following to no avail:
- deleting & re-installing the shared apps
- leaving & re-joining family sharing with her account
- updating the payment method that is attached to my account (effectively my credit card)
When trying to update my payment method, it seemed weird that:
- Apple was asking for the security code of my card (that is OK so far), and when I input that...
- ...Apple stated my card is expired (which is simply not true, it's still more than a year until expiry)
And on top of that I couldn't update nor delete nor add any other payment method, at least on iOS (haven't tried desktop iTunes yet).
By the way, I did a test purchase on my account, and it worked perfectly, so it seems that my card is OK as long as my account is initiating the purchase.
Questions are:
- how can I fix the family sharing issue?
- what's wrong with the payment method checking?
Cheers
Tamas

There are a few reasons why that would be the case. Any apps that you may have purchased and then transfered to her device would need your account information in order to update. Thats why when you go to update it brings up your id. Also make sure to check under settings that she is signed in on the device to her account not yours. You can check this from settings<store<view accout or sign in/out.
Any app you purchased is tied to the account it was purchased on, no matter if it is stored in an itunes library on a computer, a free app or free update.

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