How can I continue using the same payment method after disputing charges?

I downloaded an app from the App Store last month. The details of the transaction aren't really important, but my card was charged when it shouldn't have been. I did not use the app and contacted Apple the day the charge hit my card. I submitted my return/refund request to Apple and it was denied. Submitted an appeal, denied again. Contacted the app developer and tried to get restitution that way. He said I was indeed due a refund and told me to contact Apple because he couldn't do anything. Apple said no again.

So, I disputed the charge with my credit card company. Had it been a few dollars I would've just let it go, but it was $39.99. Submitted all my documentation and waited. Figured Apple would again say no and that would be that. Well, the dispute was quickly closed in my favor and I got my money back.

A week later and my credit card no longer works for the App Store. I deleted it and tried to re-add it, getting a message saying, "This payment method cannot be used with the iTunes Store. Try again using another payment method." The card itself is fine.

Saw on Reddit that Apple was punishing customers who charge back by blocking their cards. I chatted with customer service and asked if this was the case. She would neither confirm nor deny, just told me she "really wished she could help" but there was "nothing she could do" and she was "sorry for the inconvenience" but they system just won't let me use that card.

This is shady as **** and unbelievably petty. I've had multiple Apple devices for nearly twenty years and this is the first time I've ever had to dispute anything. Can I add another card? I can, but it'll be my debit card and I'm not nuts about that. Is there something in the T&C that says this is standard procedure? I can see it for habitual/fraudulent chargebacks but one-offs for valid reasons? Just downright silly.

[Re-Titled by Moderator]