Majority of the payment in Nepal is done through cash. And although credit cards are accepted in big department stores don’t expect to use a credit card and debit card everywhere. These payment methods, however, are readily accepted in major hotels, restaurants, and airlines. There are some charges associated with using such method. Traveler's cheque is no longer accepted in Nepal. It is convenient to have an ATM or cash around if you want to travel around conveniently.
Cash and money exchange
The mode of payment in cash is mostly through Nepalese currency. Some do accept US dollars but do expect some loss of value. You can always exchange your currency for the Nepali rupee in the banks or local money exchange. The money comes in several denominations like 1, 2, 5, 10, 20, 50, 100, 500 and 1000. There are several of these exchange markets in a tourist destination. We don’t recommend carrying around a large sum of money with you.
However, you don’t have to carry cash around all the time, there are plenty of ATM across town and cities. Most will accept cards issued by international banking networks but the withdrawal limit per day is only Rs. 10,000. Some may have limit up to Rs. 35,000 as well. Not all the cities have this features, Kathmandu and Pokhara are two of the cities that do. The charges apply so we recommend you to withdraw maximum money at once to reduce charge per transactions. Visa and Master card are accepted in most of the ATM. One of the problems, however, is the rampant technical failure in the ATM’s. You can also use western union. You will have to give some identification verification, in case you don’t have one you will be asked a secret question and you just have to answer correctly.
Tipping is something that is expected yet not mandatory. If you visit normal restaurants, then you can give a small tip of Rs. 50 or Rs.100 but it is not compulsory as they are paid on fixed salary. The porters and guides are not paid much so it will be great if you tip them as well. They take care of you and your belonging so it’s basic courtesy to give them some. In restaurant, however, you don’t necessarily have to tip them as service charge will be imposed on your bill directly which goes to the waiters.