Try purchasing app through Google Play store on your computer. Also confirm you ccard is valid in the play store. Perhaps you got a new one and forgot to update it in the store. If that don't work try contacting Google. This appears related to your account only, not with the hardware. Goodluck!
I have tried both of what you guys have said and it's still a no go ..
When purchasing it via online thru pc. It gives me an error with my google wallet account saying they need to verify stuff... I went to google wallet online again via pc and it looks pretty normal to me.. I know my card is fine cause I have been able to purchase things with it fine and I did correctly input the proper expiration date as well as CVC number.
I contacted google friday and they told me they'd get a specialist to email me back.. I think you are right when you said it's an account issue and not a hardware issue.
Initially on my GNex I was only able to download free stuff not paid content.
Step 1) Settings> Wireless & networks> More> Mobile networks> Access Point Names> tap the one for your carrier> delete(blank out) the first instance of Proxy & first instance of Port> [MENU]> Save
Step 2) Settings> Apps> All> Google Play Store> Clear Cache/OK> Clear Data/OK
That's what I did and worked fine for me after. No idea why, but just did.
Sent from my Galaxy Nexus using Android Central Forums