Paying in Iceland is surprisingly simple, especially for travelers used to card payments. Iceland is one of the most cashless countries in the world, and visitors can easily pay for almost everything using debit or credit cards, from gas stations to campsites and cafés.

What is the Currency in Iceland?

The official currency of Iceland is the Icelandic Króna (ISK). Iceland does not use the euro, and foreign currencies are generally not accepted for everyday purchases.

Current Exchange Rate in Iceland

Exchange rates fluctuate daily depending on global markets. As a general reference:

• USD to ISK mid-rate as of January 2026: ~121.82 ISK 
• EUR to ISK mid-rate as of January 2026: ~145.06 ISK
• GBP to ISK mid-rate as of January 2026: ~167.45 ISK

For the best rates, card payments usually offer better value than cash exchanges.

Iceland Payment: Cash or Card?

Cards are the preferred payment method in Iceland. Most locals rarely use cash, and many businesses don’t even keep cash registers. Travelers can comfortably visit Iceland using only cards, including for small purchases like coffee or public toilets.

What Debit or Credit Cards are Accepted in Iceland?

Most Icelandic businesses accept major debit and credit cards, including:

• Visa
• Mastercard
• Maestro
• Visa Electron

PIN usage is standard in Iceland, especially at gas stations and self-service terminals. Make sure you know your card’s PIN before arriving.

Can You Pay Contactless in Iceland?

Yes, contactless payment is widely available. You can use:

• Tap-to-pay cards
• Apple Pay
• Google Pay

Contactless payments work in shops, restaurants, gas stations, public transport, and even many campsites.

When Do You Need Cash in Iceland? (If Ever)

Cash is rarely required, but you may need small amounts in:

• Remote rural markets
• Honor-system farm stands
• Some older campsites or swimming pools

That said, even these places increasingly accept cards.

How to Get Cash in Iceland?

If you do need cash, it’s easy to obtain.

ATMs

ATMs are widely available in Reykjavík, towns, gas stations, and near major tourist attractions. Most accept international cards and offer instructions in English.

Currency Exchange 

You can exchange money at:

• Keflavík International Airport
• Major banks
• Authorized exchange offices in Reykjavík

Airport exchange desks are convenient but usually offer less favorable rates than card payments.

How to Pay for Things in Iceland?

Here’s how payments typically work for common travel expenses.

Parking & Road Tolls Payment

Parking and road tolls are usually paid via apps, websites, or card terminals. Learn more about parking fees and road tolls in Iceland before hitting the road.

Pay for Gas

Most gas stations are self-service and require a card with a 4-digit PIN. You can also use a prepaid gas card, which can be purchased at most gas stations around the country. Gas prices vary by location, so be sure to check the latest fuel prices in Iceland to plan your budget.

Pay at Restaurant and Cafés

Card payment is standard. The bill is brought to your table or paid at the counter, no need to wait for a server to take your card away.

Pay for Groceries

Supermarkets and convenience stores accept cards. Contactless payment is common even for small purchases.

Pay for Campsites

Campsites usually accept cards, either at reception, through machines, or via mobile apps. Some campsites charge electricity and lodging tax separately. 

Public Transport

Public buses and transport apps accept card and contactless payments. Cash is rarely accepted on board.

Do You Need to Tip in Iceland?

There is no tipping culture in Iceland. Service charges are included in prices, and staff receive fair wages. Tipping is neither expected nor required, though rounding up or leaving a small extra amount is appreciated in exceptional situations. 

VAT Refund & Tax Free in Iceland

Visitors from outside the EU may be eligible for VAT refunds on certain purchases. Look for “Tax Free” labels in shops and keep your receipts. Refunds are processed at the airport before departure.

Frequently Asked Questions

Below you will find the answers to the most frequently asked questions about how to pay for goods and services in Iceland.

Does Iceland accept payment in USD, EUR or GBP?

No, foreign currencies are generally not accepted. Payments must be made in ISK, usually via card.

Do you need cash in Iceland?

No, most travelers never use cash during their trip. Cards are accepted almost everywhere.

Do you need a credit or debit card in Iceland?

Yes, having at least one debit or credit card is essential for gas stations, parking, and rentals.

Should I change money before coming to Iceland?

It’s usually unnecessary. Card payments offer the best exchange rates, and ATMs are widely available.

Can I rent a car in Iceland without a credit card?

Yes. With RV Iceland, you can rent a vehicle without a credit card by choosing our Premium or Platinum insurance package, which allows alternative payment options.

Final Words: Paying in Iceland

Paying in Iceland is easy, secure, and almost entirely card-based. Bring a debit or credit card with a PIN, use contactless where possible, and keep a small amount of cash only if you plan to visit very remote areas. With this setup, you’ll be fully prepared for smooth, stress-free payments across Iceland. Don’t forget to book your campervan rental early and start planning your trip.

Do you want to know more about how things work in Iceland? Read more about parking rules in Iceland before hitting the roads.