Mikes SX Canada issue

[KeithB]

I recently went to purchase some parts on xs650direct which is the Canadian side of Mikes XS.
In the past, all transactions were in CDN $ as you would expect.
However, now the CND$ is converted to USD and the end value of that conversion is a higher value than the daily exchange rate that I checked.
This is a small order so the difference is not that much but on a large order, this would be much higher.
The currency exchange (today) on $41.69 CDN is about $42 USD
Something is not right here.
I have sent an email to Mike's asking what the deal is. Will post answer.

Here is a copy of the checkout...
$41.69Total (CAD):

$45.56
Total (USD):

Note: Your credit card will be charged in USD

 

[retiredgentleman]

They are definitely gouging. Why are they charging in US $ for a Canadian site?? The answer is obvious. The Canadian price should already reflect a conversion from the American cost price.

They just found a new way to fatten their profit margin. Exchange rate should be around 1 or 2%. Your credit card company likes to skim about 3 or 4% on exchange. By your numbers the total exchange is now 9 %, so XSdirect has now built in another 4 % profit skimming for themselves.

 

[KeithB]

Prompt response from Mike's ....still leaves questions.
I am going to place a low cost order and see how it ends up looking on my credit card statement.

Our credit card processor requires that all transaction be converted from Canadian to USA dollars in order to process orders. It appears that they only periodically edit the exchange rates (maybe once a month?) So, this is what you are seeing a few weeks ago the exchange rate was at

1CN=$1.09US

So, with this in mind

$41.60CN=$45.45

You are still paying the same amount in Canadian dollars which is the important thing as we are a canadian site. We do not like this arrangement either and are looking at different ways to avoid this. Currently one way to avoid this exchange is to pay with paypal and there is no currency exchange.

 

[gapper]

Yes i noticed this as well, and got the same respose fomr them, i have ordered over $1500 from them this spring and never once had that until the order i just placed. i go tthe same respose from them and i call bullshit! no reason and unheard of to charge a canadain customer for a canadain company in usd....will see when i get the bill on card if i need to deal with it more..

 

[650Skull]

the CC company only adjusts their rate evey month it is kinda hard to belive. If the canadian $ is rising then they are Gouging, but i bet they would change the rate daily If the C$ is going down.

This is if you believe 650 direct's statment

Why not use Paypal and save the hassle

 

[KeithB]

Why not use Paypal and save the hassle

Because PayPal is in USD as well AND they take a little taste for the "convenience".

 

[650Skull]

If you are from the US then yes i would agree with you If your are from canada then no i don't agree with you. paypal like banks charge about 1.8 - 2 cents on top of any exchange rate you see in the papers or sites that show the currancy converter. They do not charge any fees to the buyer in any transaction, (unless it entails any exchange rate), the fees are charged to the seller.
As RG pointed out Mikes Canada XSDirect is gouging an extra 5-6% by making you use the US dollar to buy in Canada.

 

[MikesXS]

Hi everyone Jim and Scott here. Wanted you to know that XSDirect is a separate company from Mike's XS. There is no common ownership, but they are a valued distributor of ours.

 

[KeithB]

They do not charge any fees to the buyer

I checked into that and stand corrected. Thanks.
Looks like I'm full of crap on this one

 

[650Skull]

Looks like I'm full of crap on this one

The CC fees that are sus