For the longest time Canadians were forced to buy Apps with credit cards. Apparently it was due to some Canadian law, but many sites have written about his topic and have even asked the Canadian government who were not aware of any such law prohibiting purchasing software with prepaid cards. I was affected because I was younger when I first got an iPod touch and I didn't have a credit card. I didn't want to bother my parents every time I wanted to buy an app. I still don't have a credit card, but I went to the US recently to buy an iTunes card and made an American Apple account (I know you're not supposed to do this, but better than stealing from devs) in order to buy apps. This evening, I just got an email from this long thread of comments (http://enkerli.wordpress.com/2009/01/12/apps-and-itunes-cards-in-canada-follow-up/) stating that it is now possible to buy apps with iTunes cards in Canada. So I went ahead and tried, and YES, it works! Thanks Apple after all these years of deprivation!