Cash or Card in Iceland?

Everything you need to know about paying for things in Iceland as a traveler.

The Short Answer

Iceland is almost entirely cashless. Credit and debit cards work everywhere, even in remote areas.

Minimal; carry some for emergencies only

Keep some cash for small purchases, street vendors, and places that don't accept cards.

ATMs are available in Reykjavik and larger towns. Rarely needed as cards are universal.

Icelandic Krona

ISK

Currency code

Check live rates at your bank or XE.com

Cards with no foreign transaction fees work best for international travel.

Regardless of your destination, these money tips apply everywhere and can save you significant amounts on fees and exchange rates:

✓Always decline "Dynamic Currency Conversion" (DCC) at ATMs and shops — it uses a worse exchange rate and adds hidden fees. Choose to pay in the local currency instead.
✓Notify your bank before traveling to avoid your card being blocked for suspicious activity. Set up travel notifications in your banking app.
✓Carry two different payment methods (e.g., two different cards, or a card and cash) in case one fails, gets lost, or is not accepted.
✓Avoid exchanging money at airports and hotels — they offer the worst rates. Use ATMs or local exchange offices in the city center instead.
✓Keep a small emergency fund in USD or EUR — these are widely accepted and easily exchanged in most countries worldwide.