Behind the MyGallons.com Controversy

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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 they had the agreement with USBank voyager and a reseller of USbank, and that was rescinded apparently as soon as they were ready to go live..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

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 3:32PM July 17, 2008

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 1:30PM July 15, 2008

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 8:28AM July 14, 2008

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 10:20PM July 10, 2008

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 5:19PM July 09, 2008

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 4:26PM July 09, 2008

As a reporter, if this is your attempt at research, then it is pathetic at best. There exists SERIOUS concerns about MyGallons. Where do I start?
First let's look at the found Steven Verona - filed for bankruptcy in 2000 and has a history of dubious business ventures. More importantly, NO material history of effective commodity risk management.
Second, the company currently has NO way to provide it's 'members' with a fuel card. He claims he will find a replacement card provider, but that takes months of work. he should shut down the site until he is ready. He is currently still accepting members and collecting $30-$40 in fees.
MyGallons is operating out of a 'virtual' office in Miami. The address of MyGallons on their site is 1221 Brickell Ave, Suite 900. Regus (the office leasing company) uses that address for those looking to have a "virtual" office with the benefits of a 'credible' address. Rent starts at $250/month. The operation may not even physically be at that address. Does that not raise another flag for you?
The US Bank/Voyager logos along with logos of Exxon, Sunoco, BP, Shell, etc have all been removed from his site in recent days. Hmmmm, why would that be you think??? That doesn't help those that signed up when those logos were present on the website launch.
The honorable thing to do is shut down the site until all the pieces are in place. Otherwise it IS misleading regardless of the defense MyGallons will list on their site or in the press. The currently have NO facility to provide it's members with a card - FACT. The list goes on Kimberly. MyGallons has an "F" rating for a reason.

Peter of ME 12:14AM July 09, 2008