How do you set up individual payment methods under family sharing

Check if you have Purchase Sharing turned on.

How to share apps and purchases with your family - Apple Support

You have a choice of using Purchase Sharing to allow sharing of apps and subscriptions, which also shares your Payment Method. If you do not use Purchase Sharing, then each person can have their own payment method, but the apps and subscriptions cannot be shared.

There is one caveat that allows individual purchases using Purchase Sharing. Each person can still use their Apple Account balance for purchases and your card will only be billed if there is not enough money left in their Apple Account to pay for the purchase. Each of them can add money to their Apple Account by purchasing a Gift Card and redeeming it to their Apple ID. They will not be able to each use their own credit/debit card for purchases.

The short answer is only one person, the Organizer, can (and must) have a card, but the Organizer can avoid having this charged by others by asking them to make sure they have adequate personal balance (e.g., from gift cards) to cover their purchases. Other family members can only pay for things by using their personal balance or by letting the remainder automatically roll over to the Organizer's payment method (such as a credit card but not the Organizer's personal account balance).

The alternative is described in this document: Add a family member to your shared subscriptions - Apple Support

"If you're the family organizer and you don't want to pay for family members' purchases and subscriptions, you can turn off Purchase Sharing [ How to share apps and purchases with your family - Apple Support ]. When Purchase Sharing is turned off, everyone must use their own payment method. When Purchase Sharing is turned off, family members can share subscriptions, but they can't share individual purchases like apps or books."

Another alternative would be for you to leave the family group altogether.

=Full details=

Bsed on: How to share apps and purchases with your family - Apple Support and How apps, content, and subscriptions from Apple are billed - Apple Support

1. If anybody in the family buys or subscribes to something, Apple first attempts to charge the item to that individual's Apple Account (Apple ID) balance, if any.

2. If a family member does not have enough personal Apple Account balance, any excess will be charged to the Family Organizer's primary payment method (usually a card of some kind). The Organizer's personal balance will not be used for purchases made by other family members. If Apple cannot bill the primary payment method, the Organizer will need to make another payment method the primary method. With Family Sharing the Organizer always has to have at least one functioning payment method.

Also note: "Some purchases, including gifts, can't be billed to Apple ID balance and will be charged to the family organizer's payment method." "Some subscriptions might not be charged to Apple ID balance."

Ref:

- Family purchases and payments - How to share apps and purchases with your family - Apple Support

- How apps, content, and subscriptions from Apple are billed - How apps, content, and subscriptions from Apple are billed - Apple Support

- Check your Apple ID balance - Check your Apple Account balance - Apple Support

- Add a payment method to your Apple ID - Add a payment method to your Apple ID - Apple Support

Adding funds to your Apple ID balance:

- How to redeem your Apple Gift Card or App Store & iTunes gift card - Apple Support

- Add money to your Apple Account balance - Apple Support

Change, add, or remove Apple ID payment methods - https://support.apple.com/HT201266

"If you're the family organizer, you can add multiple payment methods to your own Apple ID, but your family members can use only the first payment method in the list. If a family member can't make a purchase, the family organizer can move a different payment method to the top of the list."

If a family member makes a purchase using a gift card, is that item added to their account or to the family organizer's account? In other words, if I disable purchase sharing or remove them from the family, will they retain access to their purchases? I'm guessing not, but I've never tried this.

Ken

You ask two questions.

Gift cards are always added to the balance of the person who redeemed the card.

Purchases are added to the account of the person who requested the item, not hte person who ultimately paid for it under family sharing.

Tryonkus wrote:

If a family member makes a purchase using a gift card, is that item added to their account or to the family organizer's account? In other words, if I disable purchase sharing or remove them from the family, will they retain access to their purchases? I'm guessing not, but I've never tried this.

Ken

When you shut off Purchase Sharing, each family member will retain access to the apps that they have downloaded. The apps just won't be able to be used by other family members. For example if you downloaded Game1 and a family member downloaded Game2, currently you can each play both games, but when you shut off Purchase Sharing, only you will be able to play Game1 and the family member will only be able to play Game2. Apple explains it in the Support Article like this:

When purchase sharing is turned off, you stop sharing your purchases and lose access to the purchases made by your other family members. However, you can continue to share subscriptions like Apple TV+ and Apple Arcade, but everyone must use their own payment method for purchases. 

How to share apps and purchases with your family - Apple Support

Check my new balance on Apple Card account