Couldn't agree with you more actually. The high horse comment was directed more at the people just having a go at him, assuming he was committing some kind of fraud, and not answering the actual question. You're right he shouldn't have even mentioned that. I just get a bit sick and tired of people who jump in on threads shouting and screaming and not adding any value.
He obviously made the situation difficult by trying to do it a non standard way. Having said that, 'my system won't allow me to do it' isn't a valid excuse from customer services as far as i'm concerned when the mistake is on the part of the company. That's the reason you have managers and supervisors who can bypass automated procedures. At the end of the day, putting aside the fact that it might have been a lot easier a different way (in person), they DID say it was possible, then reneged on that afterwards.
Let's just for a minute imagine this wasn't apple, and some other little company who told you yes yes we can do that, to get the sale, and then afterwards just did whatever they wanted. I think more people would be on the OP's side. IF what he's saying is true, it sounds like they really can't be bothered over there at apple asia, and weather its apple or not, its not acceptable. If someone did that in my company, i'd sure as hell want to know about it.
----------
Actually you're both wrong and right.
Legally I CAN do that, and there isn't any law, regulation, term or condition saying I can't. Where it becomes a problem is exactly in the situation you're talking about, and that's not defined well.
For credit card fraud, chargebacks etc, decisions are heavily biased towards the customer, and it's the responsibility of the retailer to prove they did the relevant checks, and that the card owner DID indeed make the purchase in good faith. After 6 months it's the card owners responsibility to prove he did not make that purchase (Which is why most people thing there is a 6 month limit on chargebacks).
If you as a retailer take payment from someone and don't do the relevant checks, then you have to take the hit. As the OP said they asked for ID from the owner, and in that case they would be covered, and the credit card company takes the hit.
In a different situation, IF the owner of the card passed on security details to the OP so that he could process the transaction, then they are no longer covered by the normal protection of the card company. But realistically how will they prove that!
My point was it is NOT illegal to let someone else use your card with your permission. The only issue is proving after the fact if they did or did not give you permission if they later deny it, and for the retailer ensuring there was enough due diligence.