By Blair Pedersen
6 important things to know when you send money to Nepal
Choosing an online money transfer company should be an easy decision. There are a few things that you’ll need to think about first before you go ahead and transfer. Here is some key information to consider before you send money to Nepal.
Registration: make sure you’ve got all your documents
If you’re new to making online money transfers to Nepal, it’s important to understand that every online money transfer company will have some sort of registration process followed by online verification. You’ll save lots of time, ultimately making the process much quicker if you have all the necessary information about yourself and your recipients ready before you start. By having the documents ready before you start you’ll quickly finish the registration process and have all information needed to load a recipient. You can then then whizz through the biometric verification. These are the documents you’ll need to ensure a smooth first transfer:
- The name of the recipient’s bank in Nepal
- The recipients bank account information; account number, address, email and phone number
Now that you have this information, you’re ready to get verified!
Any reputable online money transfer company will have a robust verification process. If you’re new to a money transfer service, upon registration, you’ll find that you need to provide your personal information so that you can be verified. It’s due to Anti Money Laundering obligations which. in lay-man’s terms, this means that a company is checking that you’re a respectable citizen with good intentions.
The verification process is called ‘Biometric verification’ and is not offered by all companies. Biometric verification is usually a quick 2-step process if you have your documents ready. Biometric verification will require you to:
- Take a clear photo of yourself
- An official document that states your name and address, like a passport or driver’s license and in New Zealand customers need to provide a proof of address document
The part of the biometric verification process that can take the longest is the selfie.
When you take a photo for your international money transfer verification it’s as simple as taking a good selfie. Have you ever taken a good selfie before? If you’re a millennial, chances are you’ll already know how to operate a camera and understand the need for lighting. If you’re unsure about taking a selfie, follow these basic rules:
- Make sure the light is facing you
- Watch the screen so that it captures your whole face
- Make sure the document is laid on a flat surface when taking the photo
With a laptop computer:
Laptop computers usually have a camera built into the top of the screen. When taking a photo it’s important that a light source is behind the camera and facing towards you, illuminating your face. Once you have mastered lighting with your laptop computer, the selfie process is the same as with a phone.
If you need another explanation of how to complete your biometric verification, follow this link.
Locking in your exchange rate
Now that you’re verified and setup a recipient, you’re ready to send! Now all you need to do is setup a transfer and lock in a foreign exchange rate. Foreign exchange rates change very quickly. The fastest way to lock-in an exchange rate is to have your account setup and ready to go first. It’s that simple. The final rate you lock in will not include the transfer fee, which is slightly different for Australia, New Zealand and the United Kingdom.
Within an international money transfer there are hidden costs that are easily spotted with a keen eye. The first cost to note is the rate on offer for your remittance: There is the *interbank rate and the conversion rate.
The interbank rate is the exchange rate of your local currency to the destination currency and the conversion rate is the rate that’s offered by online remitters such as OrbitRemit. When you remit to Nepal with OrbitRemit the conversion rate will usually be a couple of points better than other international money transfer companies and far more competitive than a bank.
For an AUD to NPR transfer the conversion rates could look like this:
Competitors exchange rate:
OrbitRemit’s exchange rate**:
1 to 77.0
1 to 77.8
1 to 77.4
In this instance you will want to use OrbitRemit to remit to Nepal as you will get slightly more rupees per dollar than with a competitor.
*Interbank rate is only available to banks, licensed remitters and FOREX traders
**This rate is hypothetical and used for illustrative purposes for this article. Click here to see the real conversion rate.
There’s a gap between the buy and sell prices of any currency, called the ‘spread’. The provider takes this as profit, on top of their other fees. Every company will charge a different spread, depending on the additional fees they charge. Companies with higher fees take a lower spread, and vice-versa. Banks have a very large spread which is the reason why online money transfer companies are the best option for international money transfers. They also include a hefty fee at both ends of the transfer.
The final thing to include is the upfront fee. OrbitRemit has a flat fee to send money to Nepal from Australia, New Zealand and Great Britain. Banks on the other hand charge exorbitant fees (sometimes up to $50!) to send money overseas.
As you can see, this illustrates the need to examine exchange rates and fees together so that you can see the total cost of the transaction. It’s often quite easy to miss the total cost of the spread as it goes on behind the scenes.
A safe and secure, reputable transfer service is essential. The best way to gauge this by visiting the companies Trustpilot account and checking their trust score. We recommend using companies that have at least 15,000 reviews as they have had enough business to inform your decision.
In this connected world it’s important to understand how the companies communicate with their customers. A good indication of whether the company has a fast and effective customer service team is to take a look at their facebook page. If the response time is fast and it has many positive interactions, you can be sure that their customer service team works hard behind the scenes to field questions and speak with customers. Also, a live chat function on their website will make customer service requests even faster and more personalized.
Now you’re ready to send money to Nepal
It’s easy to send money online. Exchange rates vary in importance depending on how you are using the service and remember to assess the hidden costs of transferring. A credible, trustworthy company will have many Trustpilot reviews and have a highly engaged social media page.
No two online remitters are the same so remember to go with the one that suits your personal needs. Send money to Nepal with OrbitRemit.