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Best Ways to Send Money Online to Nepal

Updated on April 09, 2020 12:40 pm
Money Transfer Companies to Send money to Nepal

There are several ways of sending money to Nepal. We have compiled a list here.  In this article, we will cover the best and cheapest way to send money online to Nepal.

Historically, more than 50% of Nepalese working abroad used informal channels to send money home due to very high fees on formal channels. However, in the age of digitalization, the statistics are in favor of all the hardworking Nepalese, who have left home to provide better lives for their loved ones.

According to the World Bank report, the cost of remitting to Nepal is lower than the global average of 7.01%. With almost an end to the erstwhile prevailing digital divide, Nepal today stands at least at an arm's length from the rest of the world.

 

There are few factors to consider while sending money online; exchange rates, transfer fees, security, and the speed of transfer.

  • Xoom

This PayPal Company is one of the fastest ways of sending money to Nepal. They have collaborated with Nepal Investment Bank, Himalayan Bank, Prabhu bank, Laxmi Bank and many more to facilitate instant bank deposits. They cover major remittance corridors like USA, Canada, and the UK and have cash pickups locations across 4600 locations covering Mechi to Mekhali. With Xoom, Nepalese in the USA can opt to send money using their bank accounts, debit card, or credit card. The recipients in Nepal can receive the funds instantly in their bank accounts, by instant cash pick up, or choose a one-day deposit option. The maximum amount you can send online to Nepal through Xoom is USD 9,000 per transfer.

Nestled in London, it also covers major corridors and is a very popular choice amongst the tech-savvy consumers. It is one of the first money transfer service provider to focus heavily on digital remittances. Offering low transaction fees, zero hidden fees and competitive exchange rates, which are shown upfront to the sender. Nepalese in the US can send money safe online without leaving their homes or offices, and the recipients in Nepal will receive the money instantly via cash pick up at agent locations in Nepal, or money will be deposited in their bank accounts within 24 hours. For bank deposits, you can send up to USD 5,000 per transfer, while for cash pick-up option, there is a maximum amount of NPR 300,000, which can be received by a beneficiary per transfer, and a total of NPR 1,000,000 a beneficiary per day.

Founded in Singapore in 2014, InstaReM offers fast, safe, and a cheap way of sending money overseas, especially to the Asian Countries. InstaReM works on a Zero-Margin FX rate and charges a low commission rather than charging a fixed rate. It is a popular choice for transferring a small amount of money instantly. It is a new entrant in the industry winning the hearts of many customers by being one of the cheapest ways of sending money to Nepal. They charge a nominal fee, which ranges typically between 0.25% to 1% of the amount being transferred and also offers the most competitive exchange rates in the industry. You can also earn loyalty points with each transfer and redeem them against your transactions.

ThamelRemit is an online platform to send money from the USA to Nepal. The Banking Channel supporting ThamelRemit is Siddhartha Bank Ltd, one of the fastest growing banks in Nepal and a trusted name for years. Nepalese can send up to USD 10,000 per transaction through ACH transfer and their recipients will receive Nepalese rupee in their local bank accounts within 48 hours of transfer. It offers zero transfer fees and competitive exchange rates. Thamel Remit is a popular choice for recipients in Kathmandu valley. Family maintenance, purchase of property, investments, and transfers to NPR accounts are the kinds of payments that you can make through ThamelRemit.

Moneydart is one of the largest US-based money remittance companies founded in 1996 in New York and is powered by the UAE exchange. MoneyDart offers competitive exchange rates and zero transfer fees. Recently, UAE Exchange in association with Bank of Kathmandu launched FLASHremit to provide the customers with the convenience of sending money from any part of the world and crediting the recipient's bank account in Nepal in real-time.

  • Western Union

A global leader in cross-border remittances, Western Union has served millions of expatriates around the world. Nepalese can send up to USD 5,000 per transfer to Nepal and the recipients can pick up cash in minutes in any agent locations in Nepal if you are sending money using a debit card or credit card. If you send money from your online bank account, it will take 4 days to before the money gets delivered to your beneficiary in Nepal. Nepalese immigrants can also send money by cash through Western Union's 42,000 agent locations in the US and the money will reach Nepal in minutes.

Moneygram is the second largest provider of money transfers in the world and serving the immigrants for more than 3 decades since it was formed. The company operates in more than 200 countries with a global network of about 347,000 agent offices and serving the immigrants for more than 3 decades since it was formed. Through Moneygram online, Nepalese immigrants in the USA can send money up to USD 6,000 per transfer or choose to pay in cash through Moneygram's more than 30,000 outlet locations across the US. The recipients in Nepal can receive the money through cash pick-up and the money usually reaches the recipients in Nepal within minutes of transfer.

Based in Seattle, Remitly is focused on delivering a promise to provide low transaction fees and swift payment overseas transfers. Located in the tech hub, Remitly wants to do away with antiquated ways of sending money through their proprietary global transfer network described as "easy-to-use mobile app". Pay zero fees when you send money to Nepal for the first time. Users can send money by using a debit card, credit card, or through online bank transfer and depending on where the recipient lives, they may have multiple options on how to receive money including bank transfer, cash pick up, or even home delivery. With Remitly, the sender can choose between the express method of transfer with slightly higher fees, or choose the economy way and pay low fees for their money transfer from the USA to Nepal.

Ria has over 30 years' experience and has consistently ranked number one because it is one of the cheapest, fastest, and the safest way to send money and offering great exchange rates. With a worldwide agent network of 350,000 locations in 149 countries, Ria continues to help immigrants through world-class money transfer. Ria also offers bill payment, mobile top-ups, prepaid debit cards, check, and money orders. For sending money from the USA to Nepal, Nepalese can send up to USD 2,999 per transfer using their online bank accounts, credit card, or debit card and the recipient in Nepal will receive the money either through bank deposit or cash pick up at agent locations. Remitters in the US can also choose to pay in cash by visiting Ria agent locations in the US if they need to send a higher amount. The fastest way to send is by using debit or credit card, whereas it takes about four days to transfer the money from the USA to Nepal if you will use your bank account.

Licensed and authorized by Nepal Rashtra Bank, Muncha Money Transfer is a quick, secure and cost-effective way of sending money to anyone in Nepal from 50 states in the US. Muncha Money Transfer aims to provide quality service at an affordable price. Currently, it offers ACH pay mode and Nepalese in the US can send up to USD 10,000 per transaction, while the recipients in Nepal will receive Nepalese rupee in their bank accounts. Normally it takes about 48 hours for the money to get credited to the receivers' account in Nepal once the funds are cleared in the US. Muncha Money Transfer offers the first transaction at zero fees.

Small World FS is one of the world's leading payment providers offering a secure, fast and inexpensive way to send and receive money anywhere in the world. Nepalese in the USA can send money to Nepal easily and securely using online bank transfers or by using their debit cards. Small World has a very large payout network and the beneficiary in Nepal will receive the money on the same day or within 48 hours via cash pick-up or by bank deposit in Nepalese rupee. You can send up USD 9,999 per online transfer and USD 2,499 for each ACH transaction to Nepal.

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Understanding Government Remittances Tax in 2025

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US Remittance Tax Plan Update 2025 - Financial Advisory

Sending money overseas is a lifeline for millions across the US. As digital transfers grow and money crosses borders faster than ever, 2025 brings a new wave of attention from regulators. The spotlight? Remittance tax planning.From updated reporting rules to shifting tax thresholds, financial advisors are keeping a close eye on what these changes mean for everyday senders. Know that transferring money is still secure and straightforward if you know the rules.In this article, we’ll walk you through the latest remittance news, what’s changing in the tax landscape, and simple steps you can take to stay compliant and confident. Today’s Remittance StoryWhen we talk about remittances, we mean the money sent by individuals in the US to support family, friends, or business contacts abroad—often through banks, online platforms, or money transfer services. For millions of immigrants and expats, these transfers go far beyond simple transactions. 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From real-time exchange rates to timely news and practical tools, they help you navigate cross-border transfers smartly, so you can focus more on your goals and less on the paperwork.Staying ahead isn’t just about knowing the rules, it’s about using that knowledge to make better decisions for you and your loved ones.Frequently Asked Questions (FAQs)Q1. What are the penalties for failing to report large remittances?If you don’t report remittances that exceed the IRS threshold, you could face civil penalties or audits. For instance, failing to file Form 709 (Gift Tax Return) when required may result in fines, even if no tax is owed. In more serious cases, this could trigger further investigation by the IRS.Q2. Can remittances impact my US immigration or visa status?Yes. Sending unusually large or frequent remittances without a clear source of income might raise questions during immigration reviews or visa renewals. It's important to ensure all transfers are well-documented and consistent with your declared income.Q3. Do remittances affect eligibility for government benefits in the US?Possibly. If you're receiving need-based government benefits (like Medicaid or SNAP), large outgoing remittances could lead to a review of your financial activity. Authorities may question how you can afford to send money abroad while receiving assistance.Q4. Are there any remittance exemptions for students or dependents?No specific exemptions exist for students or dependents under IRS rules. However, if you're sending money for education or living expenses, the same gift and reporting thresholds still apply. It’s advisable to keep receipts and explain the purpose of funds if requested.Q5. Can I deduct remittances from my US taxes?Generally, no. Personal remittances sent to family or friends do not qualify as tax-deductible expenses under IRS guidelines. However, if the money is sent as part of charitable giving through a registered 501(c)(3) organization, it may be deductible with proper documentation.

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What is an EFT (Electronic Funds Transfer)? Everything You Need to Know

Have you ever paid any bill online, sent money through your mobile banking app, or used your debit/credit card at checkout? If yes, you have used EFT—whether you know it or not.If you are an immigrant, expat, or a small business owner, understanding what an EFT is and how it works will help you save a lot of time and money, particularly when you are sending money overseas.In this guide, you will learn the meaning of EFT, the working of various types of EFT, its benefits and drawbacks, and how to choose the right service for your requirements.What Is an EFT?EFT, short for Electronic Funds Transfer, is a method of digitally transferring money between accounts—sometimes within the same bank, sometimes between two different financial institutions. It is a secure and fast method, and doesn’t require cash or paper checks.How Does an EFT Work?EFT is just a method of moving money digitally. Whether you are sending money from one account to another, paying for online shopping, or giving out employees’ salaries, your bank uses the electronic system to process the transaction.The key players involved in an electronic funds transfer are as follows:The sender: The sender who initiates the transactionThe receiver: The person or the business that is receiving the moneyBanks or payment processors: They move the money between accounts.EFT networks: These comprise systems like SWIFT, ACH, or card networks such as MasterCard and Visa.There is no involvement of physical cash here. The entire process of transferring funds happens through computers and secure protocols.Types of EFT PaymentsThere are various types of electronic funds transfer methods. Let’s break down the top five types, so that you can make an informed decision on which is the best for your needs.1: ACH transfersACH stands for Automated Clearing House. Mostly used in the United States, it is the perfect method for business invoicing, payroll, and recurring bill payments. It takes 1-2 days for the transfer, and the fee is usually free or very low.2: Wire transfersWire transfers are best for large amounts or urgent transactions, especially overseas. Domestic wires are completed within the same day, whereas international wires may take up to 5 business days, depending on the currency and the bank. It can be expensive due to the sender or receiver fees and intermediary bank charges.3: Debit and credit card paymentsEvery time you tap, swipe, or enter your card details online for payment, you are making an electronic funds transfer. Cards are used for everyday shopping and online transactions. It involves the MasterCard and Visa networks. The risk of potential fraud also exists with cards, so always keep your card details secure.4: Mobile wallets and payments appsThere are various apps built for transfer, such as Google Pay, Apple Pay, PayPal, and Venmo. These apps allow store payments and instant peer-to-peer transfers. They are very easy to use, convenient, and quick. The only limitations are geography and the amount transfer limit.5: ATM transfersElectronic funds transfer also involves using your debit or credit card to transfer or withdraw money through bank ATMs. Some banks charge an ATM withdrawal or transfer fee if you are using a card from another bank.EFT vs. Online Money Transfer Services (like Wise or Remitly)When you think of sending money, especially internationally, you must often think of companies like Wise, Remitly, or Western Union. These are money transfer services, not the same as EFTs, although they often use EFTs to move money in the background.Let’s understand the difference.FeatureEFT (Electronic Funds Transfer)Online Service (like Wise or Remitly)DefinitionA digital method to move money between bank accountsPlatforms built specifically for sending money, often internationallyUse casePayroll, paying bills, and bank-to-bank transfersSending money to family/friends abroad, business transfersTransfer modeUses ACH, SWIFT, or card networksUses EFTs, but adds extra services and layersSpeed and feesDepends on type (ACH: 1–2 days, Wire: Same day)Often faster, but may include service fees and markupsBest forDomestic transfers, direct bank-to-bank paymentsPersonal or business transfers with added featuresIf you are wondering which is the ideal fit for you, then:Use EFTs when you are transferring between bank accounts directly or setting up recurring domestic payments (like rent or payroll).Use money transfer services like Wise, Remitly, etc. when you want a more user-friendly experience for international transfers, especially if the recipient does not have a bank account or you want competitive exchange rates.How Long Does an EFT Take?The amount of time taken for electronic funds transfer depends on the type of EFT.Type of EFTSpeedACH1-2 business daysBank wire transferSame day or next dayDebit card or credit card2-5 business daysMobile wallets and payment appsInstant or near instantATM transfersImmediate authorizationTo find out about the fastest and most cost-efficient international money transfer methods, check out CompareRemit’s rate comparison tool.What Does an EFT Cost?While EFTS are very cost-efficient, the fees vary based on the method or the provider. The fees for ACH transfers are usually free or a nominal fee. Wire transfer can cost $15 - $50, depending on the bank and country or recipient. Cards and wallets may include currency conversion costs for international use. Always double-check hidden fees, exchange rates, or delays before finalizing your transfer.Benefits of EFT PaymentsHere are the reasons for you to consider EFT payments:Affordable: No middlemen, printing, or postage involved.Speed: You can send money anytime, anywhere.Security: It is regulated, trackable, and encrypted.Great for recurring bills: It is perfect for payroll and recurring bills. Set it and forget it.Paperless: There is no requirement for any checks or physical cash.Drawbacks of EFT PaymentsEFT payments have some downsides as well. Here's what you should be cautious about:Reversal: If you have sent money mistakenly to someone, it may be lost. Reversals are not at all easy, especially with bank wire transfers.Frauds: Electronic funds transfers are still vulnerable to potential phishing and identity theft.Fees on international transfer: Banks and traditional wire transfers might include many hidden charges.Pro tip: To avoid risks, always use a comparison tool and verified platforms before sending the money.What is the Electronic Funds Transfer Act?The Electronic Funds Transfer Act was passed in 1978. It protects the United States’ consumers making EFT transactions. It limits the liability if you quickly report when your card is stolen or lost. It gives you the right to dispute any unauthorized charges. It also requires the banks to show how EFTs work and what your rights are.Understanding your rights is vital, especially if you are transferring a large amount of money overseas or running a business.Compare and Choose SmartElectronic Funds Transfer is here to stay, and they have made moving money globally without physical cash or paper checks easier than ever. But with so many options available today, choosing the right service to transfer money overseas to save time and money can be difficult.Whether you are transferring money to your family, making a business payment, or managing funds internationally, CompareRemit’s exchange rate calculator tools and comparison engine can help you save a lot of time and money, enabling you to make smart decisions.Frequently Asked Questions (FAQs)Q: What is the difference between an EFT and an ACH?An EFT (Electronic Funds Transfer) is a broad term for any electronic movement of money, while an ACH (Automated Clearing House) payment is a specific type of EFT that uses the ACH network. Essentially, all ACH payments are EFTs, but not all EFTs are ACH payments.Q: What is the difference between RTGS and EFT?RTGS (Real-Time Gross Settlement) enables the immediate, individual transfer of high-value funds, while EFT (Electronic Funds Transfer) is a broader term, which can include various methods of electronic transfer with different processing speeds. Q: Is EFT the same as Swift?No, EFT (Electronic Funds Transfer) and SWIFT are not the same. EFT is a broad term for any electronic movement of money, while SWIFT is a messaging network used by financial institutions to send instructions for international money transfers.Q: Is Wise or Remitly an EFT?No, Wise and Remitly are not EFTs themselves—they are money transfer services that use EFT methods (like ACH or wire) to move your money. These platforms often offer faster delivery, currency conversion, and added services for sending money internationally.Q: What is the difference between EFT and ACH?EFT is a broad term for any digital money transfer—ACH, wire, card, or mobile payments. ACH is a type of EFT that uses the ACH network, mainly for U.S.-based direct deposits and bill payments. All ACH transfers are EFTs, but not all EFTs are ACH.

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