Sorry to tell you, and I know your wanting people to agree with you here, but the guy at the servo did the correct thing by refusing to manually over ride your card.
When you read through of the merchanat info you get from the bank, to a business, it advises a business, not to manually over ride a card that will not swipe.
After 12 years of managment in retail I have been requested, by westpac cards services, to cut up a persons card I would think about 5 times in front of them.
One that I can remember very clearly was on Christmas eve, a card would not read and I was advised (from the little number on my display) to contact the bank, and they requested that I cut up the card, and for ME to post it off to the bank.
As for him cutting up your card, if he got that little number on the display or had to call the bank then that is what the bank would have requested him to do.
Not really fair on anyone is it.
mum to bubba 5yo, dude 4yo and little man 2yo.