We all love free Apps. But its really annoying when we can’t download the App just because we don’t have an Apple ID. Not everyone has a Credit Card. There have been numerous tutorials written on the web which could help you create Apple ID on itunes without Credit Card, but recently people have been facing an error which says “Please contact Itunes Support to complete this transaction“.

I have seen many people facing this error and desperately looking for a solution to create a free Apple ID.
The Trick which most people used was to set USA as the default country and create an account, doesn’t seem to work any more. Guess, Apple has fixed the loophole now. The IP address of the user is now taken into consideration, so you may either want to us an US IP via a Proxy or perhaps use an easier method, if you aren’t particular about the country.
How do you create Apple ID without Credit Card Now?
Don’t worry, Apple seems to have made it easier to create an Account without a Credit Card, for all the countries.
If you try creating an Account directly you may not find the option “None” as the payment option, but there is a quick work around to get that option.
Open your iTunes, and go to any Free App/Game.
Now choose to download/install the App by clicking on Free App.

Now a dialog box will open asking you to Sign in or Create an account. Click on Create Apple ID

Choose to accept the terms and click on Continue/Next.
Now you will be asked to fill in the details of the Account: Email, Password, Security questions, DOB, etc. Fill in all those and continue to the next step.
Now You should be able to see the Payment Method Page. The major difference being, “None” option will be visible. India being chosen as the default country.

Choose None and you are done with Creating a new Apple ID.
I have tried it for other countries as well, haven’t faced any issues. For example, here is a screen shot showing Saudi Arabia.

Since Apple is still largely USA centric, some apps/features are US limited, so you may want to create an US Apple ID. For that you will need to use a Proxy, get an US IP then follow the same method.
Hope this solution comes as a relief to may people waiting desperately to create Apple ID for free. Do let me know if you face any issues, will be Glad to help you.
Update:
Some of the readers wanted to know if they could create the apple ID directly on the iphone/ipod/ipad.
Yes, you can! The steps remain more or less the same.
Creating US Apple Account for free directly on iPhone/iPod using Hotspot Shield
You need to get a US IP.
There are number of ways to get a US IP, you may use a free/paid web proxy service (ex: hidemyass), you could also use a VPN (ex: Hotspot Shield), or you could use a software to change IP (ex: ultrasurf, google for more options). Of these the most secure would be VPN.
I wouldn’t reveal my private info on a free public proxy service like hidemyass, so be very careful using such services.
The best option would be using a trusted VPN like Hotspot Shield
Download: Hotspot Shield for iOS
Choose to turn on VPN manually to make things easier.
Turn On the VPN
Confirm if the VPN is working by visiting ip-adress.com (Location should show up at Anonymous Proxy)
Choose to Install any Free App via the App Store, then choose Create New Apple ID
Choose USA as the country
Agree to the terms
Choose None as the payment option
Enter the required details. You can also enter an iTunes Gift Card here.
Confirm the email address via the link you received in the email.
Voila! You are done!
Let me know if you face any issues!
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Hello, I’d like to know if the above method does work for iPads?
I downloaded Hotspot Shield VPN on my iPad, but its server doesn’t seem to be stable, connecting issues kept coming up. I couldn’t complete creating an account because the VPN keeps getting turned off on its own (is this because Hotspot Shield is only compatible with iPhones and not iPads?).
So I tried using VPNFire. I checked on ip-adress.com like you said, and I didn’t get Anonymous Proxy, but a random location in the US. I tried twice, once it was in San Antonio, the other was Los Angeles. Seeing that the location was in US, i proceeded with creating an account following your steps. But I got that same error message of “Please contact iTunes Store support to complete the transaction”.
I have no idea at all what to do for now. Would you please help me with this? I already bought a US iTunes gift card and I really don’t want it to go to waste. Thank you so much I will be waiting for your reply!
i still do not know whether where i could confirm my Apple ID
I have internet connection in my samsung mobile and I connect it to my PC to run internet on my PC too.
Is there a way that I can similarly connect an iphone to a laptop running on windows and run internet on that laptop?
Please tell me.
Thank You!
Sure you can.
Just activate the Personal Hotspot option in the settings, you can share the internet connection via Wifi/Bluetooth & USB Cable.
That’s wonderful. Thanks!
I want to buy an iphone so I want to clear everything beforehand, because it is very expensive :p
Hi, sir. My name is upender I got an iPhone from us as a gift from my sis the problem is when I creat an apple Id it’s showing to verify n I had down in n number of ways even though my apple id is askng verfication again n again. Can u plz say whts the problem ?? I hope u reply me as soon as pod bile thank.
Hello Techsplurge,
I have to get a smartphone for my son but I am concerned about his safety. I have seen that there are adult apps on Android and I don’t like it for this. People say that iphone is safer because there are no actual adult images and videos on iphone, unlike Android. Is this true? Is iphone safer. I don’t want to download any app that filters such content. I just want a safe environment. Is environment of iphone worth safe to buy it over android. (as far as children safety is concerned) or are they same?
Please tell :/
Thank you
Hello sir. Your concerns, as a father, are perfectly valid. I’ll break my answer in points:
Are their adult apps for Android?
Google has a strict policy against adult apps on the Play Store (Play Store is the official app store for Android). Such apps do get released on the Play Store, but are pulled down pretty quickly. iPhone has a similar policy against adult apps as well, but it is a lot more stricter than Android.
What about Adult Videos and Images?
Sadly, you cannot restrict the type of videos or images that can be stored in a phone. It doesn’t matter if it’s an Android or an iPhone, the user can anytime download it from the internet or transfer from a PC.
Third: From my experience, adult videos are more of a concern than apps as they generally don’t contain nudity like videos.
Please feel free to ask if you’ve got more questions. We’ll be more than happy to answer you
Oh and if you don’t mind, I’ve got a personal suggestion. I know I’m no one to advise you, but still — Please think before gifting your son a phone that is worth more than 25-30 thousand rupees. Does he respect the value of money? And does he deserve it?
Dear Saket,
Thank you for your generosity.
I don’t mind your personal suggestion, instead, thanks for your interest too.
My son is actually asking for iphone 5. Currently he has Samsung Bada. But I believe that perhaps he is eligible for it. Students of his age already have their own vehicles but when I asked him did he need one, he refused. He never asks for anything if he don’t feel that he need it.
He says that he need iphone 5 for education and work because:
1. He browse internet on mobile too much, for information and educational purposes. Internet and websites work better and faster on iphone as compared to Android.
2. iOS has even those educational apps (like Investopedia) which Android doesn’t have.
3. MOST IMPORTANT: IT IS FAST AND FLUID. IT DOES NOT CAUSE FRUSTRATION TO THE USER BY DELAY, HANGING, ETC. ITS USER INTERFACE IS REFRESHING. THIS IS THE MOST IMPORTANT REASON I CONSIDER.
Are these reasons correct?
Yes, sadly we cannot control what’s there over internet. I believe and hope that he will not visit those sort of sites but he is definitely going to use the app store. On Android, I am forced to confront bad apps like ‘remove clothes’, and others (I must not mention there names) which have actual unacceptable images (thought not complete nudity)
I know I might be asking for too much information and time from you, but you see, I don’t have many options to rely upon. Right now I know only one blog which is generous enough to help its users: TechSplurge. That’s why I’m here.
Thanking you in anticipation.
Aaditya