I do not believe this. Although it wasn't a dealership, I had experience with a business that wanted to charge a "convenience fee" to use a CC. I called VISA and told them about it and they said that business was out of line and they'd fix it. A couple days later when we went back to the business we were told that there had been a change of policy and they were no longer charging the convenience fee.

It is probably true that if the CC company does refuse to act, you would have no suit against the dealer, but probably would against the CC company. More importantly, if the CC company does not honor its contract with its members it will not stay in that competitive business for long. You pay an annual fee and risk interest and late fees, and in return should expect the CC company to keep its word. And no way would a dealer want to be told by VISA you have violated our terms of service, your right to accept VISA is revoked. For those reasons I think this talk about suits and who is a third-party beneficiary is all academic. The CC company would act, and the dealer would have to give you the negotiated price, and accept payment of the whole thing with VISA.