What is CAD?
CAD stands for “Currency Adjustment Factor” and is a fee that is applied to international transactions involving currency exchange. It is a fee that is charged by banks and other financial institutions when converting one currency to another. The fee is usually a percentage of the total transaction amount and is used to cover the cost of currency exchange.
History of CAD
CAD was first introduced in the early 1990s as a way to help businesses manage the risk associated with currency exchange. The fee was designed to help protect businesses from the volatility of currency exchange rates. As the global economy has become more interconnected, the need for CAD has grown. Today, it is used by businesses of all sizes to manage their currency exchange risk.
CAD vs. Other Fees
| Fee | Amount |
|---|---|
| CAD | Percentage of total transaction amount |
| Foreign Exchange Fee | Flat fee per transaction |
| Wire Transfer Fee | Flat fee per transaction |
Summary
CAD is a fee that is charged by banks and other financial institutions when converting one currency to another. It is used to help protect businesses from the volatility of currency exchange rates. For more information about CAD, you can visit websites such as Investopedia, Bankrate, and the World Bank.
See Also
- Foreign Exchange Fee
- Wire Transfer Fee
- Currency Exchange Rate
- Currency Risk
- Exchange Rate Risk
- Interest Rate Risk
- Currency Hedging
- Currency Swap
- Currency Futures
- Currency Options
