💰 Quick Context: The Icelandic Króna
Iceland uses the Icelandic Króna (ISK / kr). A restaurant meal costs 3,000–6,000 kr, a beer 1,200–1,800 kr, and a hotel night 25,000–60,000 kr. Quick math: divide by 137 for approximate USD (e.g., 13,700 kr ≈ $100). Iceland is one of the world's most cashless countries. You may not need physical króna at all. The critical thing to know: unmanned gas stations on the Ring Road require a chip-and-PIN card.
🎧 Order Icelandic Króna Before You Fly
Have cash in hand when you land. Insured delivery, 2–5 day shipping.
Order ISK → CEI Currency ExchangeCash vs. Card: What to Expect in Iceland
Iceland is nearly 100% cashless. Cards are accepted at virtually every business, from Bjarni Fel's hot dog stand in Reykjavik to remote guesthouses in the Westfjords.
Cards work everywhere. Restaurants in Reykjavik's Laugavegur, gas stations across the country, Bónus and Krónan supermarkets, whale watching operators in Húsavík, glacier hiking companies, and Blue Lagoon all accept Visa and Mastercard with contactless. Apple Pay and Google Pay work at most terminals.
Cash is rarely needed. Many travellers visit Iceland without touching physical króna. Consider withdrawing 5,000–10,000 kr (~$35–70) as emergency backup for rare connectivity issues in remote areas. The unmanned gas station issue is the biggest money concern: self-service pumps on the Ring Road and remote highland roads require a chip-and-PIN card. Swipe-only or signature cards will not work.
How to Get Krona for Your Iceland Trip
Iceland is closer to fully cashless than any country on this list, including the Nordics. Cards work at the Bjarni Fel hot dog stand, the Blue Lagoon entrance, every Bónus and Krónan supermarket, every Westfjords guesthouse, and at unmanned petrol pumps along the Ring Road (chip-and-PIN required, no swipe). The cash question is mostly: do you need any at all? For most travelers the answer is "a small emergency stash". The bigger gotcha is making sure your card has a working PIN since some highland petrol pumps refuse signature-only cards entirely. Two cheap ways to get the small ISK reserve you might want: pre-order before takeoff, or pull a single small withdrawal from a Reykjavik bank ATM after landing.
Order krona before you fly
For pre-arrival ISK, two paths. A currency-exchange service like CEI Currency Exchange ships physical Icelandic krónur to a US address with insured 2–5 day delivery, at a small spread over the bank rate. For Iceland this is the most defensible pre-order on the list precisely because cash is so rare: a single 5,000–10,000 ISK envelope (about $35–75) covers your entire trip's emergency-cash needs without any in-country withdrawal at all. Your home bank can also order ISK (Bank of America, Chase, Wells Fargo, Citi), free for many premium accounts and a modest fee otherwise. Allow 5–10 business days because ISK isn't a flagship currency. Iceland does not have a Bank of America Global ATM Alliance partner, so BoA debit users will pay BoA's standard 3% non-network fee on any in-country withdrawal. The honest setup for nearly everyone: a Wise or Charles Schwab card with chip-and-PIN as the primary payment method, and either a small CEI envelope of krona OR exactly one Reykjavik ATM withdrawal as the emergency backup.
Withdraw from an Icelandic bank ATM
Once you're on the ground, the cheapest source of ISK is one of Iceland's three commercial bank ATMs: Landsbankinn, Íslandsbanki, and Arion banki. All three give the actual interbank rate with no markup, and they don't add an operator fee on foreign cards. Your only cost is whatever your home bank charges (1–3% foreign transaction fee on most US debit cards, zero with a Wise or Charles Schwab card). Iceland's catch is geographic, not financial: ATMs cluster in Reykjavik (Laugavegur, the Hlemmur food hall area, every Hagkaup and Bónus shopping centre), Akureyri, Selfoss, and Egilsstaðir. Past those towns, ATM coverage thins fast; many Ring Road stretches have nothing for 100–200 kilometers. Plan for one withdrawal in Reykjavik and treat it as your trip-long cash supply rather than expecting to top up mid-loop. Avoid the standalone Euronet machines that have appeared at Keflavík arrivals and around Hallgrímskirkja, both of which add fees and push DCC. Decline DCC every time. See the Best ATMs section below for the bank-by-bank lineup, or our Reykjavik money guide for neighborhood-level locations. Want to confirm what an Arion banki withdrawal will actually cost on your card? Plug it into our ATM fee calculator.
Airport counters & "0% commission" booths
Three traps to walk past in Iceland. The Change Group and Travelex counters in arrivals at KEF (Keflavík International) advertise rates that look reasonable but routinely run 6–12% off the interbank rate, plus a fixed fee. The downtown exchange windows along Laugavegur and around Reykjavik's harbor (some marked Skiptivél) use the "no commission" framing while burying the markup in the rate. And the Euronet ATMs that have appeared near Hallgrímskirkja and at Keflavík arrivals push DCC by default and layer operator fees on top. The simplest path: stick to Landsbankinn, Íslandsbanki, or Arion banki ATMs, decline DCC, and pay everything with a chip-and-PIN Wise or Charles Schwab card so the cash question stays small. Heading to Reykjavik? Our Reykjavik money guide walks the cleanest cash strategy.
For a side-by-side comparison of every method (bank wire, travel card, pre-order, ATM, exchange counter) including USD-to-ISK timing tips, see our complete Getting Currency guide →.
Best ATMs to Use in Iceland
Iceland has only three commercial banks, and all are reliable for ATM withdrawals. ATMs are found in Reykjavik, Akureyri, and most larger towns but are sparse in very remote areas. You may not need an ATM at all if your cards have no foreign transaction fees.
Landsbankinn
Iceland's largest bank with the most extensive ATM network across the country. You will find Landsbankinn ATMs in Reykjavik, Akureyri, and most smaller towns. No operator fees for foreign cardholders, English language options, and fair interbank exchange rates. Your best bet for finding an ATM outside the capital.
Top Pick
Íslandsbanki
Iceland's second largest bank with strong coverage in Reykjavik and major towns. ATMs are typically located at or near bank branches. No operator surcharges, English-language screens, and accepts all major international cards (Visa, Mastercard). A reliable choice throughout the greater Reykjavik area.
Recommended
Arion Bank
The third of Iceland's three commercial banks. Good ATM presence in Reykjavik and larger towns like Akureyri and Selfoss. Same fair rates and no operator fees as the other Icelandic banks. ATMs are usually attached to bank branches, making them easy to spot and safe to use.
Recommended⚠ What is Dynamic Currency Conversion (DCC)?
When an ATM or card terminal offers to charge you in USD (or your home currency) instead of ISK, always decline. Choosing your home currency means accepting a 3-8% markup hidden in their exchange rate. Always select "ISK" or "local currency" at every prompt. DCC is less aggressive in Iceland than in some European countries, but it does appear at ATMs and tourist-oriented businesses.
ATMs to Avoid in Iceland
Iceland has far fewer ATM traps than most European countries because the banking sector is small and well-regulated. However, a few independent operators have appeared near the Skarfabakki cruise port and along Laugavegur in downtown Reykjavik. Always look for ATMs clearly branded with one of Iceland's three bank names.
Euronet
Euronet machines have appeared in Reykjavik's tourist areas. As with every other country they operate in, expect operator fees and aggressive DCC prompts. With Icelandic bank ATMs readily available, there is no reason to use a Euronet machine.
AvoidStandalone ATMs
Any ATM that is not branded with Landsbankinn, Íslandsbanki, or Arion Bank should be treated with caution. These may appear in hotel lobbies, souvenir shops, or near cruise ship terminals. They typically charge higher fees and may push DCC.
AvoidPaying by Card in Iceland
Card Networks
Visa and Mastercard are universally accepted across Iceland, from Reykjavik restaurants to remote highland huts. American Express has more limited coverage, mainly at hotels and larger restaurants. Discover has minimal acceptance.
Contactless & Mobile Payments
Contactless payments work everywhere, from Hallgrímskirkja gift shop to N1 gas stations on the Ring Road. Apple Pay and Google Pay function at most terminals. Chip-and-PIN is critical: unmanned (self-service) gas stations across rural Iceland require a card with a working PIN. Swipe-only or signature cards will not work at these pumps. Set up your PIN before your trip.
Where Cards May Not Work
Connectivity issues in remote areas: while cards work almost everywhere, the occasional remote guesthouse in the Westfjords or East Fjords may have spotty internet, causing card machines to fail temporarily. Having 5,000–10,000 kr in cash as backup handles this. Some older public restrooms at tourist stops may require coins (100–200 kr).
Tipping in Iceland
Tipping Guide
Tipping is not customary in Iceland. Service charges are included in all prices, and staff earn living wages. At restaurants, rounding up is appreciated but not necessary. For glacier hike, whale watching, and Northern Lights tour guides, some travellers leave a small tip, but it is not expected. Not tipping in Iceland is perfectly normal and carries no social stigma. This is one of the easiest countries in the world for tipping etiquette.
The Ring Road, Gas Stations & Practical Money Tips
Things to Know
For Reykjavik-specific tips (Laugavegur card acceptance, BSI bus terminal payments, and downtown ATM locations), see our Reykjavik Money Guide.
The unmanned gas station issue is the biggest money concern in Iceland. When driving the Ring Road (Route 1) or visiting remote areas like Landmannalaugar or the Westfjords, you will encounter N1, Olís, and Orkan self-service pumps that require a chip-and-PIN card. These stations do not accept cash. If your card lacks a PIN, purchase a prepaid gas card at a staffed station in Reykjavik or Akureyri before heading out.
Iceland is extremely expensive. A restaurant meal costs 3,000–6,000 kr ($22–44), a beer 1,200–1,800 kr ($9–13), and Blue Lagoon entry starts at 9,990 kr ($73). Self-catering from Bónus supermarket and cooking at hostel kitchens is how budget travellers survive. Hot dogs from Bæjarins Beztu (440 kr / $3.20) are the most affordable restaurant food in the country.
Keflavik Airport (KEF) has Landsbankinn and Íslandsbanki ATMs in arrivals if you want a small amount of cash. The Flybus and Airport Direct shuttles to Reykjavik accept cards. Duty-free at KEF is significantly cheaper than Reykjavik shops for alcohol (which is heavily taxed in Iceland). Buy on arrival, not departure.
Money Safety in Iceland
Staying Safe
Iceland is one of the safest countries in the world. Violent crime is essentially nonexistent. Theft is extremely rare, even in Reykjavik. You can carry cash without any safety concerns.
Use Landsbankinn, Íslandsbanki, or Arion Bank ATMs in Reykjavik or Akureyri. There are no predatory tourist-trap ATMs in Iceland. The main risk is simply not having a working chip-and-PIN card for remote gas stations. Iceland is a well-known destination, so most card issuers do not flag Icelandic transactions.
Frequently Asked Questions
Do I need cash in Iceland?
Almost never. Iceland is nearly 100% cashless. Cards work at virtually every business. Keep 5,000–10,000 kr ($35–70) as emergency backup for rare connectivity issues in remote areas.
Will my card work at Icelandic gas stations?
Only if it has a chip-and-PIN. Unmanned self-service gas stations on the Ring Road and remote roads require a card with a working PIN. Swipe-only and signature cards will not work. Set up your PIN before your trip.
Is tipping expected in Iceland?
No. Service is included in all prices. Staff earn living wages. Not tipping is perfectly normal and carries no stigma.
Is Iceland expensive?
Very. One of the most expensive countries in the world. Restaurant meal 3,000–6,000 kr ($22–44), beer 1,200–1,800 kr ($9–13), hotel 25,000–60,000 kr ($180–440). Self-catering from Bónus supermarket is how budget travellers manage.
Should I buy alcohol at the duty-free?
Yes. Alcohol is heavily taxed in Iceland (a beer in a bar costs $9–13). The duty-free shop at Keflavik Airport (KEF) arrivals has significantly lower prices. Buy on arrival, not departure.
What currency does Iceland use?
The Icelandic króna (ISK / kr). Not the euro. At roughly 137 kr per $1 USD, divide króna by 137 for approximate dollars.
Skip the Foreign Transaction Fees
The Wise card converts your money at the real mid-market exchange rate. No markups, no surprises. Spend króna like a local.
Get the Wise Card →Quick Comparison
| Method | Cost | Convenience | Best For |
|---|---|---|---|
| Icelandic Bank ATMs | Very Low (no operator fee + fair rate) | ★★★★★ | Emergency cash backup |
| Independent ATMs (Euronet, etc.) | High (fees + rate markup) | ★★★☆☆ | Never recommended |
| Credit/Debit Cards (no foreign fee) | Very Low for purchases | ★★★★★ | Everything (primary payment method) |
| Currency Exchange | High (markup fees) | ★★☆☆☆ | Not recommended |
Iceland Quick Facts
| Currency | Icelandic Króna (ISK / kr) |
| Best ATMs | Landsbankinn, Íslandsbanki, Arion Bank |
| Cash Needed? | Minimal. Iceland is nearly 100% cashless |
| Card Acceptance | Excellent everywhere. Chip-and-PIN required at unmanned gas stations |
| Tipping | Not customary. Service included in prices |
| DCC Risk | Moderate. Less aggressive than mainland Europe but still present |
| Key Tip | Make sure your card has a working PIN for unmanned gas stations on the Ring Road |
Iceland City Guides
Neighborhood-level money guides for Iceland. Where to find ATMs, which areas need cash, how to pay for transport, and more.
Iceland money toolkit
Deep-dive guides for specific banks, airports, and traveler nationalities in Iceland. Each one builds on this overview with card-by-card fee math, exact ATM locations, or terminal-by-terminal directions.