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iTunes is charged for every purchase you make, so for apps, music, storage or any other phone related purchase. You will get an invoice notification to your registered Apple ID email account about three days after purchase. You can't own an iPhone without have a credit card linked to it.
I see you are a builder. Did you by any chance give your employees phones to use. If so, the phones are registered to you and your iTunes account and credit card. You need to send them a memo that they are not to make in-phone purchases.
You can't use her iTunes account or your purchases would go on her credit card.
I would really recommend that you do a Factory Reset. This clears all her stuff off, so you can put your on. Keeping her apps on will also cause problems as many will be linked to her account. You will also find doing a Factory Reset will give you lots of memory back and speed up the phone. I went from 4S to 6 because of the lack of speed.
Click Settings, General, Scroll to the bottom, RESET. Follow the instructions.
Yes your money is lost, you can contact apple to recover the account. There are several methods to recovering an account. If you have the last credit card used on the account if will help you greatly, also if you are able to provide an accurate history of the account I am sure this will also help you, having access to your recovery email if one was set is also a BIG help. The fact that apple wants to keeps it's customers accounts secure, measures has been put in place and if you can not live up to those measures then even if legit you will not be granted access to such account. Contact iTunes via email and ask for help, do not call because CS can not help with this issue. If you are asking this question here it more than likely means you did not live up to their recovery expectations, more than likely you would not be granted access to the account... I.E yes your money is gone. Another situation, did you need your password to redeem the itunes card? if so you still have access, sounds like you used a new device and apple want to verify the account, you can go to one of the original verified device on your account, login and change security questions-or email itunes--Good Luck.
Ive popped below how to redeem on you phone, hope this helps!
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Open the iTunes or App Store on your iPhone
Music from the bottom navigation bar if you're in the iTunes Store,
then scroll to the bottom of the page. If you're using the App Store,
tap Featured from the bottom navigation bar and scroll to the bottom of
In the text box, enter your redemption code exactly as it appears on the back of the iTunes Gift Card.
When done, tap Redeem.
you are not already signed in, you will be prompted to do so after
tapping Redeem. Once you have successfully redeemed your iTunes Gift
Card, you will see the following Thank You page.
The problem with using a phone on another carrier is that even though it worked for a long period of time your current carrier updates information on there system and it may now have caught that you are using an unlocked phone on there service. This is not a bad thing but your applications may not work properly. You may also experience delayed voicemail and delayed text messaging because of this issue.
To get an itunes account you'll need to download itunes on your computer, open iTunes and choose the iTunes Store option in the left-most menu. This will take you to the iTunes Store. At the top right, you'll see a button that says Sign In. Click it. You'll also need to enter your credit card info to complete the process.
This is most likely to set up your itunes account, and have the phone sign in. You can go to settings on your main screen then click Store, the last option in the list, to see what I am talking about and to enter your info or create an iTunes account. To set up an account, you need a credit card, but Apple has now created a way to create an iTunes Account without a credit card, look here:
You have to have an account on iTunes (http://www.apple.com/iTunes) in order to access the application store. Then simply locate the icon for applications and you can search and download. Keep in mind you'll need a credit card to set up the iTunes account, even if you only use free applications.
Check to make sure the card you're using is not a debit card. Apparently only a credit card will work for the iTunes if purchasing directly from the iPhone. Oddly enough, debit cards are accepted for the online (non-mobile) iTunes store.