I am having the exct same issue. My Axis Bank debit card is not being accepted since past few days even though I have used the same card to make purchases before. Everytime I feed in the payment information, it says that the Payment Method is not accepted.
Is it that Apple now accepts only credit cards?
I just found out that iTunes in india (the latest update in itunes) does not accept debit cards.
Hope this helps.
Update regarding the above post by me:: This is the msg im getting.
itunes login asking me pay again for a paid app which i paid for already and my bank acc is also showing the charge.
It is not letting me update even free apps now.
we are unable to authorise ur payment card for this purchase. Pls update ur billing info.
It says i owe ₹55/-
but as u can see below which is a screen shot of my banks window i have paid ₹60/-and it is already debited frm my acc to apple.
Why am i being told to pay again???