By now, everyone knows that Southwest Airlines hedged its bets years ago by locking in jet fuel prices before they went into orbit. MyGallons.com is a service that claims to offer something similar to everyday motorists.
But, as always, it's buyer beware. The Los Angeles Times reports today that the Better Business Bureau is giving the Miami-based company an F rating, citing "a material omission of fact" in MyGallons.com's publicity material.
The company says it uses the Voyager Fleet network, a bank-card processing service owned by U.S. Bank. But it has become clear that MyGallons.com doesn't have a deal with the bank and currently doesn't have any other card processor in place, according to BBB spokeswoman Alison Preszler.
Preszler said the BBB has "serious concerns" about MyGallons.com.
MyGallons.com says it has a deal with a regional reseller that lets it use the Voyager network but U.S. Bancorp says that neither it nor Voyager Fleet Systems has a contract with MyGAllons.com And it adds there are no negotiations underway to establish such an agreement.
MyGallons.com founder Steven Verona says he is about to make a "big announcement" about replacing Voyager Fleet with one of its competitors.
Verona issued press releases last week touting his system, which says it lets consumers buy gas at current prices and store the credit on a prepaid debit card. Consumers can then use the card to gas up at any of the filling stations in a list Verona issued, he said.
Verona said the site signed up 6,000 members after last week's announcement. He said customers will be getting their prepaid cards as soon as the company finalizes its deal with a card processor.
There's an annual membership fee of $29.95 or $39.95, depending on the plan chosen, and a $1.95 fee each time motorists use the card.
MyGallons.com says it invests the prepaid funds in low-risk accounts, using some of it to buy fuel-price hedges.
The BBB said it wasn't making a judgment about the business model, just raising a red flag about the company's deal, or lack of one, with a credit-card processor.
The Times reported that Verona, 39, has started a series of small companies, including an online store called Pursue Peace Clothing. He filed for personal bankruptcy in 2001, the newspaper said.
