Planning an Iceland trip and don't know where to start?
Six questions, in the order they matter: when, how long, who with, budget, car or tours, where to sleep. We point you to the answer for each one.
Money in Iceland – Credit Cards, Currency, ATMs & Tipping Guide
Money & Payments
Currency, cards, and cashless payments
At a glance
- •Cards everywhere: Iceland is nearly cashless. Visa and Mastercard, Apple Pay, and Google Pay work almost everywhere, even small shops. How cashless it is.
- •Bring a PIN: Unmanned gas stations and parking machines need a 4-digit PIN, and pumps place a temporary hold of around 15,000 ISK. Cards & PIN.
- •Cash & currency: You rarely need cash. The currency is the króna (ISK); 100 USD is roughly 13,500 to 14,000 ISK. Currency & exchange.
- •Tipping: Not expected anywhere. Service is included in every price. A simple takk is plenty. Tipping culture.
Want the full picture? Keep scrolling for the detail.
Iceland is Largely Cashless
Credit and debit cards are accepted almost everywhere, including taxis, small shops, food trucks, and even some remote locations. Contactless payments (including Apple Pay and Google Pay) are widely accepted.
Tip: You can travel in Iceland comfortably without ever using cash. Even small transactions are typically done by card.
Cards & PIN Requirements
Most payment terminals accept Visa and Mastercard. American Express is less widely accepted.
PIN required: Many unattended machines (gas stations, parking) require a 4-digit PIN
Gas station holds: Unmanned fuel pumps place a temporary pre-authorization hold on your card, often around 15,000 ISK. This is not a charge. You are only billed for the fuel you pump, and the hold drops off within a few days. If your card has a low limit, this can cause a decline.
Contactless: Widely available at staffed locations
Mobile wallets: Apple Pay, Google Pay commonly accepted
Currency & Exchange
The Icelandic currency is the króna (ISK). For reference, $100 USD is roughly 13,500–14,000 ISK (rates vary). Currency exchange options are limited:
At the Airport
Exchange offices available at Keflavík Airport
In Reykjavík
Banks and a few exchange offices in the city center
Many visitors find they simply don't need cash. Your foreign card will work well throughout the country.
Note: Exchange rates vary, and shops that accept foreign cash may use unfavorable rates. Card payments are recommended whenever possible.
ATMs & Banks
If you do need cash, ATMs are available at the airport and in most towns. They dispense Icelandic króna (ISK).
Main banks: Landsbankinn, Íslandsbanki, Arion Bank
ATM availability: At airports, in towns, and at most bank branches
Fees: Check with your bank about foreign transaction and ATM fees
Tipping & Service Culture
Tipping is not expected in Iceland. Not at restaurants, not in taxis, not at hotels. Service charges are already included in every price. This is not like the US or Canada where staff depend on tips.
If you receive exceptional service and want to leave something, that is kind and appreciated — but nobody is expecting it, and no one will think less of you for not tipping. Rounding up a bill or leaving loose change is the most you will ever see locals do.
Tour guides and activity operators are the one area where a tip is sometimes given, but still never required. A simple "takk" (thank you) goes a long way.
VAT Refund (Tax Free Shopping)
If you live outside Iceland, you can claim back part of the VAT on things you buy here and take home with you. It is worth doing for bigger purchases like wool, outdoor gear, or design pieces, but the honest reality is it takes a little admin and you do not get the full tax back.
Minimum spend: At least 12,000 ISK on a single receipt from one store. Several items on the same receipt can be combined to reach that.
Ask at the till: Request a Tax Free form when you pay. The shop fills it in and staples your original receipt to it. Add your personal details before you fly.
Take it home in time: The goods must leave Iceland within three months of purchase.
At Keflavík Airport, before you check your bags
Get the forms stamped first, then submit them at the Tax Refund desk (run by Prosegur Change, in the departures area). Reclaim before you drop your luggage, because you may be asked to show the goods.
For totals under 100,000 ISK, the Tax Refund desk stamps the form. For totals over 100,000 ISK, you go to the Customs Service Desk first. Leaving from Akureyri, by ferry, or by boat has its own process.
A gentle reality check: the refund is only a portion of the VAT, and the tax-free company keeps a handling fee, so you get back noticeably less than the full 24 percent sticker tax. Treat it as a nice bonus, not a reason to overspend. Rules and thresholds can change, so confirm before you rely on a refund.
Sources: Ísland.is and Skatturinn (Iceland Revenue and Customs).
Check what your trip might cost
Supermarket prices, pool entry, and car hire all add up differently depending on when you travel, how many people you are, and how much you want to cook versus eat out. Use the Cost Reality Check to get a rough estimate you can actually use.
Cost Reality CheckQuestions visitors often ask
Can I use my credit card everywhere in Iceland?
Yes. Credit and debit cards are accepted almost everywhere, including small shops and remote areas.
Do I need cash in Iceland?
Cash is rarely needed. Iceland is largely cashless, and card payments are standard even for small transactions.
Is tipping expected in Iceland?
No. Service is included in all prices — restaurants, taxis, hotels. Tipping is kind but never expected or required. Tour guides are the one exception where a tip is occasionally given.
How much spending money do I need for Iceland?
It depends on your style, but Iceland is not cheap. Budget around 15,000 to 25,000 ISK per person per day for food and activities. Cook from supermarkets and you will stretch that much further.
Does Apple Pay work in Iceland?
Yes. Apple Pay and Google Pay work at most terminals. But have a physical card as backup, especially at unmanned gas stations where a PIN is required.
You might also need
Quick answers
Tipping, tap water, card use, Uber. The short versions.
Cost Reality Check
Interactive trip budget calculator with realistic daily estimates
Shops & Supermarkets
Finding what you need in Iceland
What If...?
Card declined? Lost your wallet? We have step by step help
Transport & Getting Around
Getting around Iceland
Alcohol Rules
Buying alcohol in Iceland