Mac 911: Creating iTunes account without a credit card: Issue: You've given your child an iPod touch. That child naturally want to buy stuff. You, however, don't want to give them access to your credit card. Here's how to setup a credit-card-free Apple ID.
The next screen, Provide a Payment Method, is where the magic happens. In the Payment Method area choose None. Enter your address information below and click Continue. You’ll see a Verify Your Email Address screen. If you don’t have access to your daughter’s e-mail account, have her check it for a message from Apple. In that message there will be a Verify Now link. All she needs to do is click that link and the account is ready to go.
So, what happens now? Your daughter will be able to download any free content she likes from the iTunes Store, including apps. However, if she wants to purchase something, she’ll see a window that tells her that the purchase can’t be completed until some kind of payment information is linked to the account. If all she ever wants to do is download free stuff, she’s fine.
This helps me, and anyone else whose credit card has expired, to continue to receive free content. Yay!