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 CEOMyGallons LLC

The whole MyGallons saga began when the media fell all over themselves about the gasoline hedging start-up, prompting the BBB to investigate the company's ability to process transactions at the pump.

The BBB found that MyGallons.com had no contract with a processor, telling Consumerist that USBank, the company that was touted in MyGallons.com's press release, had ultimately declined to participate.

MyGallons.com posted a notice claiming that USBank backed out. The BBB nevertheless issued a poor rating to MyGallons, because despite their lack of contract to process transactions, the company was still collecting membership fees. Later, the BBB met with MyGallons and revised their rating to NR (no rating) after the company agreed to suspend accepting new memberships.

Boy, that was one hell of a press release, wasn't it?

The BBB says:

The Better Business Bureau challenged the company’s advertising regarding their offer, and the company met with the Better Business Bureau on July 9, 2008 and has modified it claims. The company’s merchant services provider, PowerPay, has assured the Bureau that membership fees processed by them on behalf of MyGallons.com customers have been placed in a non-interest bearing escrow account. As of this date Mygallons.com acknowledges it does not have a contract in place with a vendor who can process transactions with gas stations across the country, and they have suspended accepting membership fees. The Bureau will issue a new report as the company’s evaluation continues.

MyGallons.com had originally claimed to be partnered with US Bank, but an investigation by the BBB revealed that that program had ended and that MyGallons.com was operating without a contract in place. The BBB has amended MyGallons rating from "F" to "NR" or "No Rating."

MyGallons LLC [BBB](Thanks, Teresa!)

The BBB has added this warning to MyGallons' reliability report.

The Bureau is concerned that the company's advertising contains a material omission of fact. Specifically, while the website proclaims that any gas station in the US that accepts credit cards will accept the My Gallons Card, however the company has informed the Bureau that no contractual agreements to process the card have been made as yet.

Here's the statement from MyGallons.com's press release:

In addition to significant savings, MyGallons offers its members convenience and freedom as the gas redemption program uses the Voyager fleet network, owned by US Bank, which is accepted at over 95% of gas stations nationwide.

MyGallons.com's, spokesperson, Greg Salsburg, told Consumerist that their partnership with US Bank was just for a "pilot program" and that they are currently in negotiations with another company. He said they expect to have a big announcement next week about their new transaction partner. He also said MyGallons is "comfortable and confident" that the deal will go through, and that current customers will not be affected.

MyGallons LLC [BBB]
MyGallons Provides Americans With a Solution To Fight Rising Gas Prices (Press Release) [Yahoo!]