Ordinary domestic cards of Nepal can’t pay online on international sites for now. But many people and organizations have legal PayPal account in Nepal. They work by credit and debit cards provided by Nepali banks. Those cards are actually USD card and our focus is to tell about those cards, account and policies. We asked few banks and found that, such cards are being used by many Nepali clients and they do work for international online payment gateway like PayPal.
The method of making PayPal account is simple. Users need to signup using their details and email. Main part is getting verified account which needs either credit and debit card or bank account. We have seen Nepal in PayPal’s website and current option is linking card. It requires USD card that has permission to pay internationally. It is possible to get such service in Nepal but there are conditions. Our regular NRS cards don’t work in other multinational sites.
NRB currently doesn’t allow such payment gateway and restricts people sending money outside easily. We searched a lot for ways for making international payment from Nepal. Our main goal was to pay for hosting, domain renewal and Facebook promotion. When we asked banks they replied that our domestic cards can’t pay. They said there is no way of sending money outside Nepal. After reading services on websites of many banks we found that there are international card service that work.
International Online Payment can only be done using USD card from Nepal. This can be Master Card or Visa system. There are both Debit and Credit card but most banks offer Credit Card for such transactions. Different banks have different rates and charges so please see their sites and ask the banks. The catch is that in order to have such card people need United States Dollar (USD) account.
Usually most banks only give International Travel card to Nepali citizens based on Passport and confirmed ticket. Another type of card is for people holding FCY account. There are few top class banks who also give FCY or Foreign Currency Account service. This service is also listed in Nepal Rastra Bank Unified Circular 2074.
Our current article is totally based on NRB Unified Circular of 2074. This also accounts for current rules and policies of banks. Mostly A and B class banks are providing these service so do ask your nearest branch, head office or card department if necessary. In our research, card departments assured us of international online payment including PayPal.
Rules and Process: The rules of NRB strictly allows only citizens, organizations and offices who have regular earning in foreign currency. Different banks have different foreign currency account. Mostly they have USD account which is what most people need. There are lots of rules, criterias and conditions for each type of scenario, people and organizations. For in-depth please read the NRB 2074 Unified Circular.
Simply the rules allow anyone who has legitimate proof of earning in foreign currency to open an account. This includes people residing here and working for company in abroad. Foreign companies who work in Nepal and pay in USD or foreign currency. People with salary certificate and slip can easily apply for such service. For freelancers and other earners it is challenging because banks ask for agreement stating earner’s name company and source of regular income.
Please be clear that, people with no such earning can’t apply for such account. Only people with proof of source can get the service from selected banks. People can’t simply convert their Nepali to Dollar and deposit in bank. Most banks ask for money to be sent from Wire and other banking methods. But NRB circular states users can deposit cash if they provide proof of source and income.
Payments and Scenario
USD or FCY are not very common in Nepal. We saw that even the bank staffs are not aware of such service and specially with the NRB rules. This article is actually meant to illuminate on the fact that there is actually such service. We were told that organizations like Tours and Travel with such income are using the international account and card.
The USD credit and debit cards can pay in sites like GoDaddy, Google, Amazon and also work in PayPal according to Banks. As far as the rules and policies state, there is way of having such service. Nepali citizens can clearly have PayPal account legally from Nepal.
We might have gone a bit off track while explaining simple thing but due to complication and rules, we had to cover all of these things. Finally we want to conclude by saying that, all you need is FCY account to have verified PayPal account in Nepal. If you have any experience and suggestion do share with us. This service was confirmed by four A class banks to us. We are still waiting for our central bank to open channel for all normal account holders to pay internationally.