Bummer.
Perhaps "Smart Cycles" should change there name by adding "Not Too" to the front!
I would definitely talk to Visa about options. Then call Mr. Gopher/Dumpster Cleaner when you have some ammo (other than the big Nuke - a bike that doesn't meet your order).
Mom always told me "you catch more flys with honey than with vinegar" - but something tells me you're past the point of trying to sweet-talk this guy. Sounds like the only option is to send it back. Sux with these cross-country purchases.
Good luck and may better bikes (and better bike dealers) be ahead for you in the future!