One of the biggest questions people have when preparing to visit another country is whether they need to convert currency. While it’s always good to have a little cash in case a vendor requires it or your card doesn’t work for some reason, many people use a debit or credit card in Iceland to pay for everything from food and souvenirs to taxis and buses.
The following article will explain everything you need to know, from using your debit card in Iceland to which credit cards are accepted in the country.
Are Credit Cards Accepted in Iceland?
Overall, Iceland is a relatively cashless society. While you can certainly use cash in just about any situation if you prefer, credit cards are accepted most places in Iceland. Even many of the pay toilets around the country will accept a credit card as payment. However, it’s always advisable to carry a small amount of cash in case your credit card doesn’t work or isn’t accepted.
Can I use Debit Cards in Iceland?
Yes, you are likely to be able to use your debit card without issues. However, make sure your debit card has a four-digit PIN (some countries issue a longer PIN) and you let your bank know where you are traveling and when to avoid declined transactions for suspicion of fraud.
Not everyone has a credit card, and there are others who prefer not to use them if they can avoid it. In these situations, visitors may wonder whether they can use their debit card in Iceland as they would at home.
Which Credit Cards Are Accepted in Iceland?
Another frequent question is which credit cards are accepted in Iceland. Master Card and Visa are the best credit cards to use in Iceland, just like many other places in the world. If you have one of these debit or credit cards, you have what you need to pay for your purchases in Iceland. However, there are some credit cards that aren’t widely accepted.
American Express is a common credit card used by residents in the United States. AMEX is not widely accepted in Iceland, except in some high-end hotels and restaurants. While these cards often have no foreign transaction fees, making them appealing to travelers, it’s best to leave them at home in favor of a Master Card or Visa.
Where Can I Use My Credit Card in Iceland?
Before you exchange your home currency for Icelandic Krona, you may wonder where you can use your credit card in Iceland and where you may need cash. For most things, you can pay with your debit or credit card, from public bus tickets and food trucks to tours and restaurants.
Most tourists visiting Iceland won’t even see the local currency during their trip as there are few places that require it. You may find you need cash for donation boxes at remote hot pots, some bathrooms, and perhaps small shops. Parking, many bathrooms, and taxis will all accept card payments.
Do I Need a PIN?
Another common question is whether you need a PIN on your credit card. While many countries issue chip and PIN cards that use a PIN for every purchase, the United States doesn’t routinely issue PINs for their credit cards. While many purchases can be completed without using a PIN, paying at an Iceland gas station requires a credit card PIN.
What do you do if you need gas and your credit card doesn’t have a PIN? Using a credit card with no PIN in Iceland to purchase gas may require you to pay inside the gas station. Buying a prepaid gas card can also resolve this issue and allow you to pay for gas at even unmanned stations. Some visitors have had success using Google Pay or Apple Pay when accepted.
Visitors are encouraged to request a PIN for their credit cards before traveling if they don’t already have one. Having a PIN can resolve these issues and ensure you can pay with a credit card in Iceland.
Speaking of Gas Stations
When paying at a gas station with your credit card in Iceland, you will be asked to select an amount or “full tank.” When selecting a full tank or sometimes even when choosing a specific amount, you may initially see an additional charge on your debit or credit card. Don’t worry! This fee is a hold and will be returned within a few days, leaving only the actual amount of gas you used.
If you’re worried about a hold on your credit card every time you fill up, it’s recommended to buy a prepaid card to use instead. These cards will allow you to fill up without the worry of additional holds that can pinch your travel budget.
What to Consider When Using Credit Cards in Iceland
It’s vital to know a few things about your credit card before using it for our trip to Iceland. The first, and perhaps most important, thing to ask about your credit is whether it has foreign transaction fees. Some cards will charge a 3% fee on all transactions, while others have free foreign transactions. When possible, opt for one without fees as they can add up quickly.
Another concern is currency conversion fees. Some card terminals will ask whether you want to pay in the local currency or your home currency. Always choose the local currency to guarantee the best exchange rate and avoid additional currency conversion fees. Your card will automatically convert the payment.
Airports typically have currency exchange kiosks. However, these exchanges often have high fees and unfavorable conversion rates. Instead of using them, take money from an ATM instead. It’s best to use your debit card for ATM withdrawals, as credit cards typically consider the transaction as a cash advance, which typically has a higher interest rate.
Ask your bank for a PIN for your credit card if you don’t already have one. You can make purchases with your credit with no PIN at most locations, but if you need gas, you will likely need a PIN, especially if you use an unmanned station. These stations are more common in the countryside.
Is It Safe to Use My Debit Or Credit Card?
Iceland is often listed as one of the safest countries in the world. While scams do still occur, they are rare and visitors shouldn’t be worried about using their debit or credit card in Iceland. Like always, keep your PIN secret and only use ATMs at a bank or in a public space.
Do I Need a Credit Card to Rent a Vehicle?
Most car rental companies require a credit card to rent a vehicle. The reasoning is they need to have a way to charge customers for damage to vehicles and unpaid parking fees, tickets, or tolls. Some rental companies may accept a debit card, but they will typically hold a specified amount unless you purchase full insurance.
If you don’t have a credit card, ask the other people in your traveling party whether they have one they are willing to use for the rental. If no one has one, talk to your rental company about your options to help you secure a vehicle for your trip.
Whether you choose to convert cash or use your debit or credit card in Iceland, you can be sure you’ll have a fantastic time seeing the country, particularly if you choose the best campervan rental in Iceland.
