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Cash or Credit Cards – How Do I Pay For Things in Nepal?
Gone are the days of travellers cheques but having a plan on how you’d like to access money in Nepal is important.
Should I use international currency such as US Dollars, does it need to be exchanged into Nepali Rupees and can I just use my credit card? What about other major currencies such as Australian Dollars, Singapore Dollars or Euros?
On Arrival
The first place you’re able to exchange money on arrival is at the airport. You know that we recommend having US Dollars for your visa, if you don’t have exact money, the change will come in Nepali Rupees. There’s an ATM available at the airport as well as a cash exchange counter. Most major currencies are accepted for your visa and sometimes they’re able to accept credit card payments, but as these options change without notice, we recommend bringing USD cash for your visa.
Exchanging Currencies
Around the major cities you’re able to exchange US Dollars and major currencies for Nepali Rupees. Hotels are able to exchange money and you’ll see small exchange counters in town, particularly in areas like Thamel and Lazimpat in Kathmandu or Lakeside Pokhara. They display their rates on a board out the front and you should always ask for a better rate than their first offer – bargaining is common in Nepal and you can always sweeten the deal for them by suggesting that you exchange a larger amount with them if they give you a better rate or you’ll bring your friends to exchange their money there.
Do note that small bills either won’t be accepted or you’ll get a lower rate and all bills should be in very good condition without any tears, marks or folds. So that means they’re fresh from the bank counter where they can check the notes for you.
Using ATMs
There’s a network of ATMs in the cities of Nepal where you can take Nepali Rupees directly from your card or account at home. This is a good way of avoiding wads of cash in your luggage from home.
They charge around $5 per transaction, so to minimize the fees, find one that gives a good amount, Rs35000 (around US$250 depending on the exchange rate) is usually the maximum.
*Do check with your bank that your account AND card allow international transactions
** Don’t forget to notify your bank of your travel plans so that they know to expect international transactions.
***Make sure you know the PIN to your card, even if it’s a credit card and that it’s a 4 digit PIN.
Credit Card or Visa/Mastercard Debit Cards
This is a relatively new phenomenon but yes, at many shops and restaurants in cities in Nepal accept card payments! This is not available everywhere so you do need to have cash available, even if you plan to mostly use your card while travelling. Some places will charge you a transaction fee of up to 5%.
Card facilities are not available outside of the major cities and if you’re going trekking, you’ll need to have Nepali Rupees to use as your spending money for snacks, hot showers, extra drinks, etc.
American Express cards are not accepted by all terminals in Nepal, it’s best to use Visa or Mastercard. If you do bring an AMEX card and would like to use it, do confirm before you hand over you card to complete the transaction.
Tipping in Nepal
Can I tip in a foreign currency or do I need to use Rupees?
For small tips, Nepali Rupees are best. Small notes are often not accepted to exchange and the fees associated really eat into an already small amount.
At the end of trek (you don’t need to tip our porters or guides along the way, at the end is fine) rupees makes it easiest for the crew, but USD is also fine. Do keep in mind that they’ll have a hard time changing small notes ($20 and under) or anything that’s damaged, folded or has marks on it.
At a restaurant, if you’re paying by card it’s best to leave a tip in cash if it’s not already included on the bill. 10% tip is a good rule of thumb for a tip. Of course, you’re always welcome to leave more for a particularly excellent meal or outstanding service.
Need more information on tipping in Nepal? Click here.
So which option is the best for Nepal?
We recommend a having a combination of options, so you don’t get caught short.
- Have some backup cash with you that’s in a major currency such as US Dollars
- Use the local ATMs to get cash in Nepali Rupees with a Visa debit or Mastercard debit card
- Use your credit card as a backup or to pay for things in shops, restaurants and hotels
Security
Keep valuables, cash and cards in your day pack or on your person at all times. Don’t pack them in your main luggage or leave them in an unlocked tea house room. It is very rare for things to be stolen or go missing in Nepal but it can happen anywhere and it’s best to take precautions to avoid a serious, vacation-ending situation.
Fun Money Fact
Nepali Rupee notes each feature wildlife found in Nepal including the Royal Bengal Tiger, One-horned Rhinoceros, deer, yaks, snow leopards, blackbucks and Asian elephants. On the reverse side, Mt Everest is featured.
