Just wondering what's the best thing to do, should I send some one $500 thru Money Gram or tell him to use his ATM card (from USA bank) to take out the money. It's not about ATM fee or Money Gram Fee. Just for the sake of the safety.
What would you do? Please comment.

Moneygram is safer, ATM card is risky, what if he/she takes out more than you wana give.

What sort of safety issue are you talking about when it comes to sending money via moneygram? It'll cost you $11 to send $500. Most banks have a daily cap of certain amount ($400 for me for both Chase and BOA) as far as withdrawals are concerned. So if someone tried to withdraw $500, it'd either need to be done on different dates.

But withdrawing money via atms will pretty much guarantee that they'll get money based on that very day's exchange rates, unlike moneygram, that typically 'charges' 1 rupees/dollar.

Sorry friends I didn't mention that my concern about AMT pin being hacked. I heard cyber crime is one of the fastest growing crime in Nepal and India.
As far as I know if some one hack your pin no. and take out money from your account especially in foreign country it impossible to get it back, but if someone hack you credit card and make purchases any where in the world, it's 99% possible to get credit back and you won't be liable for those charges.
So how safe is it to use ATM (even credit card) in Nepal? Has anyone gone thru such a situation after using their credit card/debit card on ATM/restaurant/stores in Nepal or India?