Why is it saying that my payment doesn't match my banks record

Then it is 99.9% certain that it doesn't. Suggest you check your details then check with the issuer of the card. Have you recently changed anything or been issued with a replacement card bearing a different security code.

Very frustrating, I know, but these problems are rarely Apple's fault.

Worth reading the link below, too.

Apple ID: Security and your Apple ID

Message was edited by: seventy one

Yes; I thought that may be the case. Go to edit your payment details and enter the replacements. All should then work. It is the equivalent of a new card.