Behind the MyGallons.com Controversy

Actually I don't think he is collecting membership feeds anymore at till they find a new gas card provider.. I got a letter that due to the events they were refunding my membership fee and they did so.also, the BBB revised the rating from F to NR. they had the agreement with USBank voyager and a reseller of USbank, and that was rescinded apparently as soon as they were ready to go live.. the testimonials on their site are weird though i will give you that.. I imagine they had a limited test trial as well..

time will tell.

infinity of FL @ Aug 07, 2008 14:15:46 PM

My Gallons UseMyBank

The one thing we have learned is that there is consumer demand for this pre paid product.

All that has to be done is find the right partners and make it happen.

Truck fleets have been doing this since time began.

Brian Crozier

UseMyBank.com

Brian Crozier of AL @ Jul 18, 2008 15:00:22 PM

I have serious doubts on how the infrastructure will work. Over 60% of gas stations in America is independently owned and oerated by small Mom & PoP locations. They buy their fuel from a Fuel Marketer or distributor who does not work directly for a Major Oil Company. These Fuel Jobbers or Marketers buy and sell branded gasoline such as Exxon or Mobil, or unbranded gasoline, but have to purchase the fuel and resell it. Who is going to take the loss on the gasoline purchased if the price goes up? I don't honestly see the independent store owner or chain taking the loss, or the bank/credit card authorizer company. It costs a retailer maybe $30,000 to buy one tanker truck of fuel and they may only make $100 profit after paying taxes and so forth on the fuel. So who refunds the three months later, or years when the price has skyrocked? A lot of Marketers and retailers are going out of business because they are loosing money to prepay fuel and margins are killing them. This all doesn't make sense. Somebody is going to loose money and I dont see the retailer doing this, the Marketer, or the bank/credit card authorization company. Is mygallons.com going to buy tankers of oil or fuel to lock in prices? Serious questions needs to be explored and explained about how the fuel is going to be managed(who is the supplier, seller, etc..).

Margaret of TX @ Jul 17, 2008 15:32:47 PM

Email from MyGallons.com CEO (Recived 7/15)

Dear MyGallons Member,

We developed the MyGallons program because, like you, we wanted to help

solve the problems caused by the rising price of gasoline. We are proud

of what we created and look forward to providing you with this innovative

service in the very near future.

Due to difficulties with a key supplier, we are unable to deliver the

service we promised to you at this time. We apologize for the delay.

You will be receiving a refund on your credit card for 100% of the

membership fees that you have previously paid.

To express our sincere thanks for your loyalty and support, once we

secure a new payment network, you will enjoy the benefits of the MyGallons

program free of membership charges for your first year.

Rest assured, we are working diligently to secure a relationship with a

new national card processing company. We will keep you updated every step

of the way as we overcome the challenges we face together.

Sincerely,

Steven Verona

Founder and CEO

MyGallons LLC

Joe Timmons of OH @ Jul 15, 2008 13:30:21 PM

Re: Fred Williams

The adjustment they talk about is if you buy gas that is 10 cents more than the local average price at the time you redeem the gas not at the time you prepaid. If you prepay at $4 and the price rises to $4.50, that 10-cent margin is from the $4.50. If you fill up at $4.39, you receive a credit. If you fill up at $4.65, your account is adjusted downward.

Nick of PA @ Jul 14, 2008 08:28:03 AM

Mygallons is trying to provide a solution

Mygallons is at least doing something positive - the real story and focus should be on why us bank and voyager are making inconsistent staements in the press and breached an agreement to allow and give this company a chance - someone needs to start questioning and investigation voyager and find out what is the real reason they have backed away from their deal - doesnt make sense and it seems as gogas has been placed in a uncomfortable situation - i don't trust the banks more!!!!!!!!

g w of FL @ Jul 10, 2008 22:20:28 PM

This is a scam. Read the fine print!

This is a scam. Not the Nigerian-Type scam because the business is legit. But there's little to no chance of you saving any money on this. Forget the part about the history of the owner or the issues with the credit card company. Look at the fine print in the service agreement. I did a little reading into this to see what their terms and conditions where. Here's what I found:

From the Service Agreement:

2.5.3 MYGALLONS maintains the right to make and will make price adjustments to your Personal Account any time you redeem the MYGALLONS Services for a price at the pump that is at least 10 cents per gallon higher or lower than your MYGALLONS Price at the time of the redemption (not at the time you pre-purchased the fuel). For example if your available MYGALLONS Price at the time you make a redemption is $3.50 per gallon you will receive an adjustment credit to your Personal Account if the price you redeem for at the pump is $3.40 per gallon (or less) or an adjustment debit against your Personal Account if the price you redeem for at the pump is $3.60 per gallon (or more) at the time of redemption.

This means that the most they will allow you to save is 9 cents per gallon. Anything over that and they "adjust" your account. So add that to the $40 annual fee for manual renewal (it's only $30 for auto-renewal)and that means that you would have to go through 444 gallons in a year just to break even in the best possible scenario.

Now when I factor in my Geo Tracker, I get 27 MPG. That means that I'd have to save the max allowed and drive 11,988 miles just to break even!

Working with that number, if I drive 12,000 miles in a year then that means I'd start saving money on my last 1/2 gallon for the year. Factor in the 9 cents and that means that in the best case scenario I'd save $0.05 a year using this service. That's it. I'd save a nickel driving 12,000 miles in a year if i get the maximum allowable savings at each and every fill-up for 12 months. Thanks but no thanks. Especially if you factor in overdraft fees, etc. And what are the chances of getting the full 9 cent savings every time?

Fred Williams of ME @ Jul 09, 2008 17:19:03 PM

Gas

The bankruptcy and previous corporations of the owner who wants you to buy

prepaid gas cards at mygallons.com. Escrow accounts are not protected from

bankruptcy proceedings as mentioned in article.

http://webofdeception.com/#mygallons

Robert Lewis of FL @ Jul 09, 2008 16:26:34 PM