Quick answer. KEF has Landsbankinn and Islandsbanki hradbanki ATMs inside the arrivals hall landside near the customs exit, charging zero operator fee on foreign cards at the actual Visa or Mastercard interbank rate. But the honest answer for most travelers is: you probably do not need any Icelandic krona. Iceland is the most card-saturated country in Europe. Every Reykjavik restaurant, Bonus and Kronan supermarket, Straeto city bus, Blue Lagoon ticket, Ring Road gas station, hot dog stand, and Westfjords guesthouse takes contactless. The one Iceland-specific trap is the DCC prompt at restaurant card terminals ("charge in USD or ISK") — always tap ISK. If you do want a small cash reserve, the Landsbankinn ATM is your cheapest option. Skip the Change Group and Travelex counters in KEF arrivals (5 to 12 percent markup). The FlyBus and FlyBus+ airport coach to Reykjavik's BSI terminal in 45 minutes accepts contactless tap-to-pay, so you can leave the airport with zero krona and never look back.
Where to get Icelandic krona at KEF
KEF has the standard Icelandic airport mix: zero-fee Landsbankinn and Islandsbanki hradbanki ATMs in arrivals; a small number of Euronet standalone units along the walkway to rental cars and FlyBus; and the Change Group and Travelex counters in arrivals. The cost math below assumes you withdraw kr. 10,000 (about USD 72) starting from a USD account. Worth repeating: most Iceland travelers do not need any cash at all.
| Option | Where | Markup | Total Cost |
|---|---|---|---|
| Landsbankinn / Islandsbanki hradbanki ATM (KEF arrivals) | Landside arrivals hall near customs exit | kr. 0 operator fee + interbank rate | ~kr. 14,200 + kr. 0 fee |
| Landsbankinn / Islandsbanki ATM in central Reykjavik | After 45-min FlyBus to BSI | kr. 0 + interbank rate | ~kr. 14,200 + kr. 0 fee |
| Pre-ordered krona (CEI) | Delivered to your US address | ~2-3% | ~kr. 14,500-14,900 |
| Pay everything by card and skip cash entirely | Card terminals everywhere in Iceland | 0-3% home-bank FX on each transaction | Variable, typically cheapest |
| Change Group counter (KEF arrivals) | Arrivals hall near customs exit | 8-12% over mid-market | ~kr. 15,300-15,900 |
| Travelex counter (KEF arrivals) | Arrivals hall near Change Group | 8-12% | ~kr. 15,300-15,900 |
| Standalone Euronet ATM (DCC trap, baggage claim walkway) | Between customs exit and FlyBus pickup | kr. 250-500 + 4-12% DCC | ~kr. 14,800-16,200 |
Where to find Landsbankinn and Islandsbanki ATMs at Keflavik Airport
Keflavik International Airport (KEF) is Iceland's main international gateway, located about 50 kilometers southwest of Reykjavik on the Reykjanes peninsula (not in Reykjavik proper). It handles roughly 8 million passengers a year through a single integrated terminal with separate Schengen and non-Schengen piers, all funneling into a shared landside arrivals hall on the ground level. The Landsbankinn and Islandsbanki hradbanki ATMs sit in the arrivals hall near the customs exit, before the rental car desks and the FlyBus pickup zone. Iceland's three commercial banks (Landsbankinn, Islandsbanki, Arion Bank) all charge zero operator fee on foreign-card withdrawals at the actual Visa or Mastercard interbank rate. The catch at KEF is the Change Group counter in arrivals plus a small number of standalone Euronet ATMs that have appeared along the walking path between baggage claim and the rental car desks since 2022.
KEF Single Integrated Terminal (Schengen and non-Schengen piers)
Icelandair, Play Airlines (the Icelandic low-cost successor to WOW Air), United, American Airlines, Delta long-haul to North America, plus Scandinavian Airlines, Lufthansa Group, British Airways, EasyJet, and most major European carriers. The terminal has separate Schengen and non-Schengen piers that share a common landside arrivals hall
All KEF arrivals exit into a shared landside arrivals hall regardless of pier. The Landsbankinn hradbanki ATM is on the wall just past the customs exit on the right side, plus an Islandsbanki unit further along the same wall before the rental car desks. A standalone Euronet unit sits in the visible walking path between the customs exit and the FlyBus pickup zone; walk past it to reach the Landsbankinn or Islandsbanki units.
Do you actually need cash at Keflavik?
Almost never. The FlyBus and FlyBus+ to central Reykjavik, every Straeto city bus via the Klappid app or direct card tap, every Reykjavik taxi, every Hertz and Blue Car Rental car-hire counter, every Bonus and Kronan supermarket along the way, and every gas station accept contactless tap-to-pay. Even airport vending machines and the Joe & The Juice and Sushisamba outlets at KEF take contactless. There is no realistic situation between KEF and central Reykjavik where you need cash. Here is what works on tap:
FlyBus airport coach (KEF to BSI Bus Terminal in central Reykjavik) (kr. 3,799 (USD 28) with contactless): Every 35 to 45 minutes, 45-minute run. Contactless tap via in-vehicle terminal or via the Reykjavik Excursions app..
FlyBus+ (KEF to BSI plus hotel drop-off shuttle) (kr. 4,999 (USD 36) with contactless): Same FlyBus to BSI, plus minibus shuttle from BSI to your hotel. Useful if your accommodation is not within walking distance of BSI..
Airport Direct (private shuttle services) (kr. 4,300-5,500 with contactless): Similar coach service operated by alternative Reykjavik Excursions providers. Often used for hotel transfers when FlyBus is full..
Rental car (Hertz, Avis, Budget, Sixt, Blue Car Rental, on-airport) (kr. 8,000-15,000+ per day): All major rental agencies have on-airport desks at KEF arrivals. The standard choice for Ring Road or Golden Circle road trips. Some require a refundable hold on a credit card..
Taxi (Hreyfill, BSR; rare for KEF given the distance) (kr. 18,000-22,000 to central Reykjavik): Pre-book or take the rank at curbside. Card readers in every vehicle. Not the standard choice given the 50km distance; most travelers use FlyBus or rental car..
⚠ DCC trap. When the ATM or terminal asks if you want to be charged in your home currency instead of the local currency, always decline and choose the local currency. Accepting locks in a 3-13 percent markup that your no-FX-fee card cannot undo. Full DCC explainer →
Frequently Asked Questions
Do I need cash to get from Keflavik to Reykjavik?
No. FlyBus airport coach (KEF to BSI Bus Terminal in central Reykjavik) accepts contactless. Most taxis accept cards. Uber and other apps are card-only.
Can I order Icelandic krona before flying?
Yes. CEI Currency Exchange ships physical Icelandic krona to your US address in 2-5 days at rates well below airport counters. Order 50-100 Icelandic krona for taxis and tips on day one.
Do I actually need any Icelandic krona at all?
Probably not. Iceland is the most card-saturated country in Europe and arguably in the world. Every restaurant, supermarket, bus, gas station, hot dog stand, tour operator, and rental car desk takes contactless. Most travelers complete a full Iceland trip without holding a single krona note. The legitimate cash use cases are vanishingly small: a tip jar at a 101 Reykjavik trad-folk pub, the occasional Westfjords or Vestmannaeyjar fishing-village shop with an offline terminal, and small toilet coins at remote highland huts. If you want emergency cash, kr. 5,000 to 10,000 (about USD 35 to 75) is more than enough for any realistic edge case.
Which ATM is best at KEF arrivals?
The Landsbankinn and Islandsbanki hradbanki ATMs inside the KEF arrivals hall are functionally identical: same zero operator fee on foreign cards, same Visa/Mastercard interbank rate. Either is fine. If you can wait until Reykjavik (45 minutes by FlyBus or 50 minutes by rental car), the Landsbankinn flagship branch on Austurstraeti and the Islandsbanki branch on Kirkjusandur cost the same and are central to the rest of the city.
Should I use the Change Group or Travelex counter at KEF?
No. The Change Group and Travelex counters in KEF arrivals post Icelandic krona at 5 to 12 percent off the interbank rate plus fixed transaction fees. A real Landsbankinn or Islandsbanki ATM is 30 to 60 seconds further along the arrivals concourse and will save you roughly kr. 1,000 (USD 7) on a typical kr. 10,000 withdrawal.
What is the standalone Euronet machine near baggage claim?
Walk past it. Euronet has installed a small number of standalone ATMs inside KEF along the walking path between the customs exit, the rental car desks, and the FlyBus pickup zone. They charge a kr. 250 to 500 surcharge per withdrawal and stage a hard DCC pitch ("charge in USD" at 6-12 percent over mid-market). The Landsbankinn and Islandsbanki units are 30 to 60 seconds further along the same walking path and cost zero on the operator side.
What is the DCC trap at Icelandic card terminals?
Every cafe, restaurant, hot dog stand, and shop card reader in Iceland prompts "charge in USD or ISK" once it detects a US-issued card. Tapping "USD" adds a 4-12 percent DCC markup on top of whatever your home bank charges. Always tap "ISK". This is the single biggest non-obvious cost in Iceland, far more impactful than ATM choice because most travelers spend more on restaurants and gas than they ever withdraw in cash.
Can I leave KEF with zero Icelandic krona?
Yes, easily. The FlyBus and FlyBus+ airport coach from KEF curbside to the BSI bus terminal in central Reykjavik runs every 35 to 45 minutes and takes 45 minutes, accepting contactless tap-to-pay via in-vehicle terminals or pre-purchase via the Reykjavik Excursions app. Rental car desks (Hertz, Avis, Budget, Sixt, Blue Car Rental) all accept card. Reykjavik taxis from the curbside (Hreyfill, BSR) accept contactless via in-car terminal. Uber and Bolt do not operate in Iceland. If you have a no-FX-fee card you can land at KEF, tap onto the FlyBus, and never need an ATM at all.
How do I get from KEF to Reykjavik?
Three good options. The FlyBus and FlyBus+ airport coach from KEF curbside to Reykjavik's BSI bus terminal runs every 35 to 45 minutes, takes 45 minutes, and costs kr. 3,799 (about USD 28) one-way with contactless. FlyBus+ includes a hotel drop-off shuttle from BSI to your accommodation. The Airport Direct private shuttle services (similar service via Reykjavik Excursions) cost kr. 4,300 to 5,500 one-way. A rental car from the on-airport agencies (Hertz, Avis, Budget, Sixt, Blue Car Rental) is the standard choice for Ring Road trips; the drive to central Reykjavik takes 50 minutes via Highway 41. Taxis from the curbside run kr. 18,000 to 22,000 (USD 130 to 160) to central Reykjavik and are not the standard choice.
Can I order Icelandic krona before flying to Iceland?
You can but you probably do not need to. CEI Currency Exchange ships physical Icelandic krona to your US address in 2 to 5 days at rates roughly 2 to 3 percent over interbank. Useful only if you want a small kr. 5,000 to 10,000 (USD 35 to 75) emergency reserve for a Westfjords or Vestmannaeyjar trip where a tiny rural shop might have an offline card reader. For most Iceland travelers, a Wise or Charles Schwab card and zero pre-ordered cash is the standard setup.