iTunes declining incorrect billing information when its indeed correct

I have been exchanging emails with support all day -- needless to say with no resolution of the issue.
The first answer was that Apple was having an issue (I agree!) that was now resolved.
My response: no it's not resolved -- I still have the problem.
The second answer was that I had a firewall problem
My response: I have the same issue on my iPhone over 3G and on my laptop on multiple networks, so it is not a firewall issue.
The third answer was that as I had new device I had to reenter my credit card information.
My response: I have six Apple products and have not had to do that previously and when I do try and do it now I get an error message from iTunes.
I have also checked with my credit card company. They have received over 30 verification requests from Apple in the last 44 hours (the time I have been having this problem) and they have acknowledged in the positive everyone of these.
I wish I could tell you I had an answer, but I don't.

I've been in the same boat myself. I've been back and forth with iTunes support since Monday 9/12 about this. I've gotten the same answer over and over again in different verbiage. First it was that my credit card information is incorrect. We moved past that. So I reentered the info again and still the same problem. Now its something to do with not having added a credit card since August 28, 2010 which is ridiculous and bizarre. My payment info has NOT changed ever. This is heights of incompetence.

I have entered four different credit cards (all of which I know are valid) and get the same error message from iTunes for everyone of them.
It seems that in both our cases we received replacement iPhones and that is what triggered the problem.
This may be a reach, but I understand replacement iPhones are not new units, they are refurbished units -- I wonder if this is something to do with the fact that the phone in a previous incarnation was owned by someone else and the fact that we tried to make purchases on the phone with a different iTunes account has somehow locked up the system at Apple...

PS. Off topic, but I am a huge Led Zeppelin fan - saw them several times...

I've been more stubborn with the changing credit card. I didn't change anything, neither did my bank so there is no reason for me to provide alternate payment information. Your theory does make sense given the way their system is behaving. The agony is that when I got my replacement at a local Apple store, the guy behind the counter assured me that I was all set, the device was enabled and authorized. I'm wondering if he lied and said what he needed to. At this point, I really don't know what to do. The second level rep that this issue was escalated to seems dumber than the person I was in touch with earlier. He wants me to contact my financial institution. I never imagined Apple support to be so pedestrian. In fact, I don't consider it support anymore. Its an organized way of ignoring problems and bouncing people around until they give up. The ones that make a lot of noise get some attention but I doubt. Its cocky and arrogant.

Aside - I'd love to see Zeppelin. Unfortunately, its a lottery now if they ever consider doing a concert.

Same with my phone replacement.
My next step is to make a Genius Bar appointment, demonstrate the problem and sit there until I get some satisfaction. They must be able to contact people at Apple that we can't get to...

That's probably the next step for me too. Just wondering what to do if that doesn't work since this is a billing related issue.

Still waiting after more than 10 days for an account reset, but since I had the problem, I found a workaround. My suggestion is both trying to keep this issue in one thread as there are dozen now in the various Apple forum. It will seem that there are few with the same problem as the other threads with thousands of views get buried. There are threads for the Mac users and Windows users, all repeated.

I posted this in another thread similar to this and hope this may be useful to some. There is a problem and there is a partial workaround while they fix it. Please contact iTunes by email in order to have your accounts unblocked.

"This is definitely a system glitch from Apple iTunes that was happening to fewer people last year and intensified this last couple of weeks to a lot of people. It is not a geo location problem, but some issue with the application store anti-piracy system or whatever security feature on iTunes that became rogue.

The offending computer or device used with the account when attempting to purchase an application, becomes blocked (or embargoed) with the credit card declined loop were it is not a problem with the card, as any other payment type are also blocked, including the "none" option.

There is no need for people to VPN as the problem is also happening to US accounts based in the US, like mine.

The workaround is logging to the iTunes account in a computer different from the one that "caused" the glitch and filling up the remaining information when asked to verify the account. Still did not verify if this works under iTunes 10, but all different computers under version 9 I tried worked. However they became blocked again when tried to purchase an app. It has to be done with a computer that did not try to purchase apps after the first computer was blocked.

The embargo will continue on the app store and the user will be able only to update applications, download free applications, buy movies and songs or whatever. Don´t try to purchase apps or your computer will become blocked again.

This will work on all devices linked to one´s iTunes account, including Apple TV, PCs, iPhones and iPads.

This will work until a supervisor at iTunes unblocks your computers and account. They are overburdened with the launch of the new ipods and new iTunes 10. In my case still waiting for more than a week exchanging messages with an extremely polite agent that can´t do this by herself. iTunes does not have a customer service desk reachable by phone, only email. So hold on to your seats.

When attempting to purchase an application, the in use device or computer will become blocked and the verify account information loop will come back. Then the fix has to be find another computer (not used before) and start all over again. This works like a virus that spreads after the first device is infected as the account becomes infected. Only a non infected computer can be used for the workaround.

I am sure Apple, as a great company they are, will fix this on due time and when they recognize the problem(maybe they already have), but until then this is what is presented. "

Thanks for the instructions on the workaround. Thats a lot of effort. I appreciate. These steps, unfortunately, did not work for me. I tried them on iTunes 10. I'm downloading version 9.2.1.4 and installing it on yet another computer to give it a shot.

BrazilNuts - You're the savior!!! I followed your steps with iTunes version 9.2.1.4 and it worked. I am able to download updates to previously purchased apps whew. I haven't tried downloading songs or TV shows. I don't think I'll be buying any more apps until this is resolved/fixed. Thanks much for your efforts and finding out a way. I did notice this bit that even though my iTunes 9 still told me that my credit card info did not match my bank's records on the new computer (that never had iTunes on it), I was able to start downloading updates on my regular computer. I'll try downloading updates directly from my phone just to see if that works. Thanks again.

I have changed cards and tried to alter the old credit card information and put in the new information and the Apple store keeps saying the information is wrong, when my card works fine with paying all my bills and shopping everywhere else online. This issue has been going on for over A month now and arrogant Apple, has done nothing to resolve any of the issues, that thousands or people are experiencing. Im done with all of apples products and services, everything thing about apple never works correctly. They design stuff and use the customers as beta testers. I even have a fee that is due for previous music and the legacy non-functional payment system apples has and won't even accept PayPal either. I will continue now using Amazon to purchase muisc..it's cheaper anyway for some artist.

Hey "No Longer..." - Try the method suggested by BrazilNuts. I had a similar problem and it worked for me. A month is a long time. Have you considered writing a letter to Steve Jobs? It might be worth a try. Good luck.

I really hope Apple rectify this problem soon. I have a paypal account linked to my iTunes account, and now, I am stuck in an endless loop whether Apple asked me all the time to enter a valid credit card instead! I have had no problems until a few days ago and now I can't even update the man apps I have bought with this account. This is extremely unfair to people like us, who are left stranded with no answer or solution in sight. I have subscribed to this topic with the hope that a solution is forthcoming. I am very unhappy with Apple for this.

Hard though it is to find any positives on this, the good news is that the more people who contact Support to flag this issue the more likely (one hopes) that it will be escalated to someone who cares about fixing it.
'My' support person on this has resorted to replying to my emails by just sending back the same reply repeatedly telling me to update my billing information. He doesn't seem to understand that this is what I can't do -- even though I have sent him screenshots of the error message.
I have specifically asked him to escalate the issue.
I would encourage everyone else fighting this to do the same.
BTW - I have tried BrazilNuts work around and have not got it to work. However, I have only tried it on another Mac running iTunes 10. I am trying to get my hands on a machine running iTunes 9 as this seems to be a common factor among those who have success with the workaround.

Glad to know it worked for you. Just don´t attempt to purchase any apps. The computer/device you use will become compromised and all your other devices will become locked again. Just wait until the iTunes customer support people reset your account.
This is probably being caused by new security protocols they are using due to security breaches on the app store. You can read about this elsewhere (app developer fraud compromising iTunes accounts, iTunes card algorithms hacked by Chinese hackers and other).
They do need to fix this nonsense as more and more customers are being punished because of a rogue system Apple is placing in the iTunes Store and a couple of hackers.

FasTJR, or you can try using a friend´s computer and logging in with your account there (I am not sure if you have also to authorize it) and confirming the credit card code or other method of payment. It should get you out of the loop and unblock your account for other computer/devices. Just don´t try to purchase apps there or it will become blocked and you will have to find another computer.