i can't believe sony hasn't fixed this problem. How the hell do they expect people to pay for games when they wont take my money. Playstation store has to be the worst marketplace. iPhone FTW, Sony fail. They're not even trying to win this mobile gaming war. this error is real frustrating, im about to smash the vita with a hammer.
I had the same problem but my credit card had just expired and I had got a new one. The billing information on my PSN was for my old credit card so it was invalid. What you need to do is just update your credit card then update the billing information on your PSN via PS Vita or PS3 to your new credit card.
I called sony and talked to someone who wasnt any help at all. He just kept suggesting go buy a psn card. I was always loading 5 bucks on both accounts every week but now i cant. I wont be going out and buying a psn card any time soon so guess they will be loosing some money
The real problem is to convince the radioshack people that it was their fault, but finally they acepted to reactivate it, back in my place i tried to redeem the code and there was no more that error code.
Hope it helps playstation forum