Getting Icelandic Króna for Your Trip to Iceland
Iceland has a well-earned reputation as one of the world's most expensive destinations. A simple meal can cost £20-30, a beer £10-15, and even a hot dog from the famous Bæjarins Beztu will set you back £6-7. The good news? You won't need to worry about exchanging currency before you go.
Iceland is extremely card-friendly - arguably more so than anywhere else in Europe. Cards are accepted at the Blue Lagoon, remote highland huts, tiny fishing village shops, and unmanned petrol stations in the middle of nowhere. Many businesses actually prefer cards and some refuse cash entirely.
Given Iceland's eye-watering prices, the most important thing you can do is bring a fee-free debit card. A 3% foreign transaction fee on Iceland prices isn't just annoying - it's genuinely expensive. With the right card, you'll at least get the real exchange rate on every purchase.
Best Ways to Pay in Iceland
1. Fee-Free Debit Cards (Essential)
A multi-currency card like Wise or Revolut is the only sensible option for Iceland. You'll use it for absolutely everything, from glacier tours to supermarket runs. These cards offer the mid-market exchange rate with minimal fees - crucial when prices are already astronomical.
2. Credit Cards
Visa and Mastercard are accepted everywhere. If your credit card has no foreign transaction fees, it can be useful for large purchases or rental car deposits. Be aware that car rental companies in Iceland often require a credit card (not debit) for the security deposit.
3. Mobile Payments
Apple Pay and Google Pay are widely accepted in Reykjavik and tourist areas. Connect your fee-free card for convenient contactless payments. Coverage can be spottier in remote areas, so ensure your physical card works too.
4. ATM Withdrawals
ATMs exist at Keflavik Airport, in Reykjavik, and in most towns. However, given that cash is rarely needed, most visitors never use one. If you do, stick to bank ATMs (Landsbankinn, Íslandsbanki, Arion Bank) and always withdraw in ISK.
Using Cards in Iceland
Card acceptance in Iceland is exceptional:
Where Cards Are Accepted
- All shops, restaurants, and cafes
- Tourist attractions (Blue Lagoon, Golden Circle sites)
- Remote highland huts and refuges
- Unmanned petrol stations (PIN required)
- Swimming pools (sundlaugs)
- Public toilets at tourist spots
- Supermarkets (Bónus, Krónan, Hagkaup)
- Farmers markets and small vendors
Important Card Tips for Iceland
- Enable your PIN: Many unmanned petrol stations and automated machines require a 4-digit PIN
- Fuel station pre-auth: Petrol stations often pre-authorize 15,000-20,000 ISK - this is released after you pump
- Always choose ISK: If prompted for currency choice, select Icelandic Króna
- Notify your bank: Let them know you're traveling to avoid blocks (though less common with Wise/Revolut)
- Bring a backup card: In remote areas, you don't want card issues leaving you stranded
- City buses: Straeto buses in the Reykjavik area have not taken cash since 1 June 2025; tap a contactless card when you board, with a separate card for each passenger
Surviving Iceland's Prices
Let's be honest: Iceland is brutally expensive. Here's what to expect and how to cope:
Typical Costs (2026)
- Restaurant meal: £15-30 for a basic main course
- Beer: £10-15 at a bar
- Coffee: £4-6
- Petrol: About £1.60/litre
- Hotel: £150-300+ per night
- Hostel dorm: £40-60 per night
- Blue Lagoon: £80-200+ depending on package
- Hot dog (Bæjarins Beztu): £6-7
Money-Saving Tips
- Self-cater: Shop at Bónus (the pink pig logo) for affordable groceries
- Bring food: You can bring food into Iceland duty-free
- Tap water: Iceland's tap water is exceptional - never buy bottled
- Free hot springs: Skip Blue Lagoon and visit free natural hot springs
- Camp: Camping is much cheaper than hotels
- Lunch specials: Many restaurants offer cheaper lunch deals
- Happy hour: Reykjavik bars have happy hours - drinks are still expensive, but less so
Driving and Fuel in Iceland
Most visitors rent a car to explore Iceland. Here's what you need to know about paying for fuel:
- Unmanned stations: Many stations, especially outside Reykjavik, are unmanned and card-only
- PIN required: You must have a 4-digit PIN enabled on your card
- Pre-authorization: Machines pre-authorize 15,000-20,000 ISK before dispensing fuel
- N1, Olís, ÓB: Main fuel brands - all accept international cards
- Fill up often: Stations can be far apart in remote areas
Tipping in Iceland
Tipping is not part of Icelandic culture, and nobody will expect one:
- Restaurants: Not expected or customary
- Cafes: No tipping
- Taxis: Not expected (just pay the meter)
- Tour guides: Not expected, but appreciated if exceptional
- Hotels: Not customary
If you insist on tipping for exceptional service, it will be accepted graciously, but it's genuinely not expected.
Best Exchange Options for ISK
Top providers by category:
Landsbankinn
Largest Icelandic bank. ATMs in all towns.
Íslandsbanki
Good coverage including rural areas.
Arion Bank
Third largest bank. Good card acceptance.
Keflavík Airport
24-hour ATMs. Since November 2025 the only exchange desk is Prosegur Change in arrivals.
Reykjavík Centre
Cards accepted everywhere. Cash rarely needed.
Compare ISK Exchange Rates
See what you'd receive from providers local to you
Frequently Asked Questions
Iceland's prices make even a 3% foreign transaction fee genuinely expensive, so the step that matters is a card without fees, Wise or Revolut say, which converts at the mid-market rate. There is no need to buy Króna before you fly, since cards are taken almost everywhere, and if you do want cash, withdraw ISK from a bank ATM.
Almost certainly not. Cards are taken at every shop, restaurant and cafe, at the Blue Lagoon and Golden Circle sites, in remote highland huts, at unmanned petrol stations, swimming pools and even farmers markets, and many businesses prefer them, with some refusing cash altogether. Straeto buses around Reykjavik have not accepted cash since 1 June 2025, so tap a contactless card when boarding, one card for each passenger.
No. There is no need to buy Icelandic Króna before you travel, because cards are accepted everywhere; just bring a fee-free debit card and a backup card and choose ISK whenever a terminal offers a currency choice. If you want notes on arrival, Keflavík Airport has 24-hour ATMs and, since November 2025, a single exchange desk, Prosegur Change in arrivals.
Yes, but be prepared. Many stations, particularly outside Reykjavik, are unmanned and card-only, so your card needs a working 4-digit PIN. The pump pre-authorises 15,000-20,000 ISK before it dispenses fuel and releases the hold afterwards; N1, Olís and ÓB all take international cards, and in remote areas the next station can be a long way off, so fill up often.
Very expensive indeed. In 2026 expect £15-30 for a basic restaurant main, £10-15 for a beer in a bar, £4-6 for a coffee, about £1.60 a litre for petrol, £150-300 or more a night for a hotel and £40-60 for a hostel dorm. Self-catering from Bónus, bringing food in duty-free, drinking the tap water, camping, lunch specials and Reykjavik happy hours all take the edge off.
No. Tipping has no place in Icelandic culture and no one expects it, whether in restaurants, cafes, taxis or hotels; tour guides do not expect tips either, though they appreciate one after an exceptional day. Should you tip anyway for outstanding service, it will be taken graciously, but it is genuinely not expected.
Nearby Destinations
Planning to visit multiple countries? Check out exchange guides for nearby destinations:
Norway
Denmark
Ireland