Behind the MyGallons.com Controversy

July 8, 2008 RSS Feed Print
  • Comment (11)

A few skeptical readers wrote to tell me they thought I didn't do enough research on MyGallons.com before writing about it and potentially driving new customers to it. They pointed me to a Los Angeles Times story, the Consumerist, and the Better Business Bureau, which gave the company an F grade.

"I'd check into the viability of this company before offering some free press," scolded Norman Mok of the Armchair Economics blog. Mark from Texas wrote in to say that he signed up for MyGallons.com and then quickly canceled his membership after learning about the Better Business Bureau rating.

Further investigation into this company suggests that this relatively new company is experiencing some growing pains but nothing that—to me, at least—sets off any major alarms. The BBB gave the company an F because MyGallons.com's original partner, which was scheduled to handle the transactions at gas stations, pulled out of the deal. The BBB's Michael Galvin says the company failed to properly disclose that it did not currently have a way to process those transactions. The MyGallons.com website explains the debacle and tries to dispel much of the criticism about the company that has been circulating online.

MyGallons.com is working quickly to install a new partnership that will enable the gas station transactions to take place, says spokesman Greg Salsburg. He couldn't specify when the new contract would be in place but promised it would be soon. We'll keep watching; meanwhile, anyone interested in the "buy now, use later" idea would probably be better off waiting until the kinks have been worked out of the system.

Reader Comments Read all comments (11)

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You don't have all the facts either. Mygallons is not currently taking money or credit card numbers to become a "member". All that you can do is provide some basic info including an email address. The site states that they will contact you by email after they have secured a payment network.

That doesn't seem like too much of a risk. I will evaluate my next move after I get the email. That is, if I ever get that email. Which I won't. So everybody can just relax.

Bryan Lee of NE 12:17AM November 23, 2008

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 2:15PM August 07, 2008

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 3:00PM July 18, 2008

Alpha Consumer

Kimberly Palmer, senior editor for U.S. News & World Report, writes about making smarter financial decisions. She’s the author of Generation Earn: The Young Professional's Guide to Spending, Investing, and Giving Back.

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