Rethinking Remittances: How U.S. Migrants Can Support Their Loved Ones Without Paying More

17th June, 2025

Author: Ana Vargas, Customer Success and Partner Marketing Manager

Category: News

As millions of hardworking migrants across the United States send money home every week, new policy changes may be about to hit them where it hurts most: in the support they provide back home through remittances. 

The Trump administration is backing a proposal to impose a 3.5% tax on all remittances sent by non-citizens, including green card holders, work visa holders, and undocumented workers alike. That means if you send $500 home, $25 could go to the government instead of your family. 

For families relying on every dollar to cover school fees, groceries, or medical bills, this is more than a political move—it’s a direct financial blow. 

But there’s another way to help your loved ones. And it’s faster, smarter, and may be tax-free. 

The Problem: A 3.5% Remittance Tax That Hurts the Most Vulnerable. 

In 2023, migrants from Nigeria alone sent over $20 billion back to their home country. For many countries in Africa, Latin America, and Asia, these funds are more reliable than foreign aid. 

However, the proposed 3.5% tax would reduce the amount families receive and may prompt people to use informal, risky channels to avoid fees. 

For many U.S. migrants already struggling to juggle rising living costs, rent, and healthcare, even a small tax is too much. 

The Shift: Sending Value Instead of Cash. 

Instead of sending money that may be taxed, lost in conversion, or spent on unintended things, migrants are increasingly turning to digital products to help their families and friends directly. 

What Can You Send: 

• Airtime top-ups so your parents can stay in touch; 

• Mobile data bundles so your siblings can study or run their business; 

• Prepaid electricity or utility bill payments so your family home stays powered; 

• Gift cards to trusted retailers and pharmacies; 

• School fees or healthcare payments through secure platforms. 

This is called sending value, not just cash. 

Why It Makes Sense for Migrants: 

• No Surprise Taxes: Unlike remittances, most digital value transfers are not subject to federal taxes like the proposed 3.5% fee. 

• Immediate and Direct: You don’t have to wait days. Your family gets what they need instantly – airtime, data, electricity, groceries, gifts, and more. 

• More Control and Peace of Mind: You know exactly how your help is being used – no middlemen, no misuse, no waiting. 

• Safe and Secure: Platforms like the ones charged with Prepay Nation API system use trusted, encrypted systems to send value to over 150 countries. 

Real Stories from the Community. 

Esi from Ghana, living in New York, says:
“Instead of sending money for data, I now send the bundle directly to my niece. It’s cheaper and faster, and I know she can attend her online classes.” 

Luis from El Salvador shares:
“My mom doesn’t have to go to the bank anymore. I just pay her electricity bill from here, and she’s good for the month.” 

How Prepay Nation Helps You Do This. 

Prepay Nation is a global platform that makes it easy to send digital value across borders. Whether you’re topping up airtime in Nigeria, sending a utility voucher to Ghana, or delivering a grocery gift card to Honduras, it happens instantly, securely, and often for less than the cost of a remittance.  

• 🌐 600+ global partners; 

• 📱 Seamless mobile and online experience; 

• 💳 Pay with U.S. money, debit or credit cards; 

• ⚡ Delivery within seconds. 

Whether you’re supporting one person or your whole village, Prepay Nation customers make it easy to show love – even from thousands of miles away. 

But How Does It Work? 

The only thing you need is to find one of Prepay Nation customers and decide what product you want to send home. In a step-by-step: 

1. Visit a Prepay Nation customer – POS; Kiosk; Vending Machine; Overall Merchant; Digital App; Money Transfer Operator; … 
2. Choose the country you want to send the digital value to 
3. Select the product: Airtime, Data, Bundle; Gift Card, or Bill Payment 
4. Enter the recipient details – It may be a phone number or an email address 
5. Pay and send. Done in seconds. 

No forms. No lines. No 3.5% tax. 

Final Thoughts: Send Smarter, Not Just Harder. 

Migrants have always found ways to care for their families, no matter the barriers. This new remittance tax is just another challenge, but now, you have better tools. 

By switching from sending money to sending digital value, you’re not just saving money – you’re making every dollar count. 

So, the next time you’re about to send $100 home, ask yourself:
Would airtime, data, or a paid utility bill do better, faster and safer?