Shipkevich PLLC founder and principal Felix Shipkevich was recently featured in U.S. News & World Report discussing changes to the cost of sending money internationally and what they could mean for consumers and the money transmission industry.
The U.S. News article, “Sending Remittances Will Be More Expensive Thanks to Trump. Here’s What to Do,” examines a new federal tax on certain remittance transfers from the United States and the potential impact on individuals who regularly send money to family members and others abroad.
The measure was enacted as part of federal tax legislation signed by President Donald Trump in July 2025. Beginning January 1, 2026, a 1% excise tax applies to certain remittance transfers funded with cash, money orders, cashier’s checks, and similar physical instruments.
Felix Shipkevich Provides a Money Transmission Perspective
As an attorney whose practice focuses extensively on payment systems, money transmission, and the regulation of money services businesses, Shipkevich provided U.S. News with insight into how the new requirements fit into the broader regulatory environment surrounding remittances.
The issue extends beyond the additional cost imposed on individual transactions. For companies facilitating international money transfers, changes to federal law can introduce new operational and compliance considerations alongside the state and federal regulatory requirements that already govern the industry.
Shipkevich’s payments practice includes advising money transmitters on licensing requirements across the United States, regulatory matters involving state agencies, cross-border transactions, and federal and state enforcement issues.
A Changing Environment for Remittance Providers
Remittance services occupy a highly regulated segment of the financial services industry. Money transmitters may already be subject to state licensing requirements, federal anti-money laundering obligations, consumer protection rules, disclosure requirements, and other compliance responsibilities.
The introduction of a federal excise tax on certain remittance transactions adds another consideration for companies operating in the space.
For consumers, even a relatively small percentage can become meaningful when money is transferred regularly. For remittance providers, the change raises practical questions surrounding implementation, transaction funding methods, consumer disclosures, and the systems used to facilitate cross-border payments.
Funding Method Matters
An important element of the new framework is that the tax does not apply uniformly to every remittance transaction.
The 1% excise tax is directed at certain transfers funded through physical payment methods such as cash, money orders, and cashier’s checks. That distinction makes the way a consumer funds a transfer increasingly important when evaluating the total cost of sending money internationally.
The change may also influence how consumers choose between traditional remittance services and digital payment methods as they compare transaction fees, exchange rates, convenience, and applicable taxes.
Compliance Remains Critical for Money Transmitters
For businesses operating in the payments and money transmission industries, the remittance tax is another example of how quickly the regulatory environment can evolve.
Companies offering cross-border payment services should evaluate new federal requirements alongside their existing obligations under state money transmission laws and other applicable federal regulations.
Shipkevich PLLC regularly advises money transmitters, payment companies, fintech businesses, and other financial services providers on licensing, regulatory compliance, transactions, and enforcement matters.
Felix Shipkevich’s inclusion in the U.S. News discussion reflects his longstanding work in the payments and money transmission space and his role in helping businesses understand an increasingly complex regulatory environment.
Read the full U.S. News & World Report article for Felix Shipkevich’s commentary and additional discussion of the remittance tax and its potential impact on consumers and the payments industry.
read full article here:
https://www.usnews.com/banking/articles/sending-remittances-will-be-more-expensive-thanks-to-trump-heres-what-to-do