So here's the fix. I had to talk to apple on the phone to get the answer. It's hideously simple, but htey make it as non-intuitive as possible. The apple philosophy, methodology and mindset has always been that of a bunch of. I wish my daughter didn't want to use anipod so bad.
1. Be ballsy and go ahead and put in your credit card information. Nw you can do anything you want.
2. Sign in on itunes to your account and go to "account". Next to "payment type", hit the edit link.
3. Because you previously put in credit card information, you will now definitely see the "none" button. Click it.
At this point, your card will be taken off and supposedly apple now has no card linked to your account. I personally do not trust them. I think they keep the information. They're on a par with bankers as far as I'm concerned.
At any rate, here's the answer. Reading these posts has been hilarious. Thanks for the laughs.
<Edited by Host>