As seen here, Apple's Family Sharing feature uses payment methods in very odd ways.
Currently, if you have an iTunes gift card balance on your account, and you purchase something, the iTunes credit will be used first; then your credit card will be billed for any amount in excess of the credit. This makes sense.
Once you activate Family Sharing, even though the organizer is responsible for the purchases of their family, the iTunes gift card balance is NOT used when the purchase is initiated by someone other than the organizer.
In other words, let's assume that Frank is the organizer of his family share group. He has $100 in iTunes credit. Frank has Amy (his wife) and Beth (his daughter) as members of the group.
Frank buys Angry Birds for 99¢. Beth and Amy can play and download Angry Birds too, and play it, for no additional cost. Frank now has $99.01 remaining in his iTunes gift card balance, and no charges are made to the credit card. This is correct.
Frank decides to upgrade his iCloud storage to 200GB - $3.99/mo. Because it's iCloud storage, no one else shares the space. This makes sense too. Also, because Frank has a balance, his credit is used first. Balance now: $95.02. Great! Makes sense.
Beth decides she needs 20GB of iCloud storage. It costs 99¢/mo. Frank has agreed to pay for it; beth purchases it, and Frank pays. Makes sense too. However, in this case, even though Frank has an iTunes credit of $95.02, the 99¢ iCloud drive subscription does NOT use the credit; it charges 99¢ to his credit card. Frank still has $95.02 credit. huh?
Amy decides to buy Cut the Rope for $1.99. Frank has agreed to pay for that too. Frank and Beth can ALSO download and play Cut the Rope without Frank paying more. In this case, Amy's $1.99 purchase also does not use his store credit. Frank has to pay $1.99 on his credit card. The $95.02 credit is not used at all.
At all times Frank was responsible to pay for his family's purchases. At all times, family members could share apps/music/TV Shows/Movies, etc. At all times Frank had a substantial store credit. But, only when Frank purchased the music/app/storage/etc himself did iTunes use the credit.
This is wrong.
Please let Apple know you also think this is wrong.
You can leave Apple feedback here: https://www.apple.com/feedback/icloud.html
Currently, if you have an iTunes gift card balance on your account, and you purchase something, the iTunes credit will be used first; then your credit card will be billed for any amount in excess of the credit. This makes sense.
Once you activate Family Sharing, even though the organizer is responsible for the purchases of their family, the iTunes gift card balance is NOT used when the purchase is initiated by someone other than the organizer.
In other words, let's assume that Frank is the organizer of his family share group. He has $100 in iTunes credit. Frank has Amy (his wife) and Beth (his daughter) as members of the group.
Frank buys Angry Birds for 99¢. Beth and Amy can play and download Angry Birds too, and play it, for no additional cost. Frank now has $99.01 remaining in his iTunes gift card balance, and no charges are made to the credit card. This is correct.
Frank decides to upgrade his iCloud storage to 200GB - $3.99/mo. Because it's iCloud storage, no one else shares the space. This makes sense too. Also, because Frank has a balance, his credit is used first. Balance now: $95.02. Great! Makes sense.
Beth decides she needs 20GB of iCloud storage. It costs 99¢/mo. Frank has agreed to pay for it; beth purchases it, and Frank pays. Makes sense too. However, in this case, even though Frank has an iTunes credit of $95.02, the 99¢ iCloud drive subscription does NOT use the credit; it charges 99¢ to his credit card. Frank still has $95.02 credit. huh?
Amy decides to buy Cut the Rope for $1.99. Frank has agreed to pay for that too. Frank and Beth can ALSO download and play Cut the Rope without Frank paying more. In this case, Amy's $1.99 purchase also does not use his store credit. Frank has to pay $1.99 on his credit card. The $95.02 credit is not used at all.
At all times Frank was responsible to pay for his family's purchases. At all times, family members could share apps/music/TV Shows/Movies, etc. At all times Frank had a substantial store credit. But, only when Frank purchased the music/app/storage/etc himself did iTunes use the credit.
This is wrong.
Please let Apple know you also think this is wrong.
You can leave Apple feedback here: https://www.apple.com/feedback/icloud.html