Iceland currency and money — ISK, cards, and costs explained
Do I need cash in Iceland?
Almost never. Card payment is accepted virtually everywhere in Iceland — petrol stations, supermarkets, farm guesthouses, hot dog stands, and campsite kiosks. Carry a card with no foreign transaction fees. An ATM withdrawal of 10,000–20,000 ISK (around $70–150) for emergencies is sufficient for most trips.
The Icelandic króna (ISK)
The currency of Iceland is the Icelandic króna (ISK). Notes come in denominations of 500, 1,000, 2,000, 5,000, and 10,000 ISK. Coins are 1, 5, 10, 50, and 100 ISK.
As a rough guide in mid-2026:
- 1 USD ≈ 135–140 ISK
- 1 EUR ≈ 145–150 ISK
- 1 GBP ≈ 170–175 ISK
These rates fluctuate. For the exact current rate, check xe.com or your bank.
Card payment is the default
Iceland is one of the most cashless countries in the world. Cards (Visa, Mastercard, and contactless including Apple Pay and Google Pay) are accepted almost everywhere:
- Major supermarkets (Bónus, Krónan, Nettó)
- Petrol stations (N1, Orkan, ÓB)
- Restaurants, cafes, and bars
- Guesthouses, hostels, and hotels
- Roadside farm shops
- Campsite kiosks
- Parking meters in Reykjavik
- Even many market stalls and pop-up food trucks
American Express is less universally accepted, particularly at smaller guesthouses and petrol stations. Bring a Visa or Mastercard as your primary card.
The card to bring
The most important thing is to use a card with no foreign transaction fees. Many standard bank cards charge 1–3% on every foreign currency transaction, which adds up on an expensive trip. Options worth checking before you travel:
- Charles Schwab debit card (US): No foreign transaction fees, reimburses all ATM fees worldwide.
- Wise card (international): Excellent exchange rates, low fees.
- Revolut (UK/EU): Good rates, free tier has monthly limits.
- Starling Bank (UK): No fees on card payments or ATM withdrawals abroad.
- Monzo (UK): Similar to Starling for international use.
- Capital One Venture / Quicksilver (US): No foreign transaction fees.
If your current card charges foreign transaction fees, consider opening one of the above before your trip. The savings on a 10-day Iceland trip can easily reach $50–100.
ATMs in Iceland
ATMs (called hraðbanki in Icelandic) are widely available in:
- Keflavik Airport (arrivals hall, post-security)
- Reykjavik (multiple per street in the city centre)
- Akureyri and other larger towns
- Petrol stations along the Ring Road
In very remote areas — deep in the Westfjords, the Highlands, or small east-coast villages — the nearest ATM may be 50–100 km away. Do not rely on finding one when you need it.
ATM fees: Icelandic ATMs often add a withdrawal fee of 400–600 ISK per transaction. Your home bank may add its own fee on top. The Schwab debit card reimburses these fees. Otherwise, withdraw larger amounts at once rather than multiple small amounts.
Dynamic Currency Conversion (DCC): When an ATM or card terminal offers to convert the transaction to your home currency, always decline and choose to pay in ISK. DCC rates are significantly worse than the interbank rate your card will use.
Exchanging currency
You can exchange currency at Keflavik Airport (Arion Bank), in central Reykjavik, and at some post offices. Exchange rates at airports are typically poor — arrive with a good card instead.
There is no reason to exchange currency before your trip for Iceland. Your card will get you better rates than any foreign exchange bureau at home.
What things cost
Iceland is genuinely expensive. These are typical prices in 2026:
Food and drink:
- Pylsur (Icelandic hot dog) at Bæjarins Beztu: 680 ISK (~$5)
- Main course at a mid-range Reykjavik restaurant: 3,500–5,500 ISK (~$25–40)
- Coffee: 600–900 ISK (~$4.50–6.50)
- 0.5L beer in a bar: 1,200–1,800 ISK (~$9–13)
- Skyr (500g) at Bónus supermarket: 400–500 ISK (~$3)
- Loaf of bread at Bónus: 250–350 ISK (~$2)
- Dinner from a supermarket (ready meal + drink): 1,500–2,500 ISK (~$11–18)
Transport:
- Petrol: approximately 290–320 ISK per litre (~$2.10–2.30/litre, or ~$8/US gallon)
- Flybus airport transfer (one way): 3,500 ISK (~$26)
- Taxi from KEF to Reykjavik: 14,000–18,000 ISK (~$100–130)
Activities:
- Blue Lagoon entry (Comfort): from 12,490 ISK (~$90)
- Glacier hike on Sólheimajökull: from 10,000–14,000 ISK (~$72–100)
- Whale watching from Reykjavik: from 14,000 ISK (~$100)
- Northern lights tour: from 11,000 ISK (~$80)
Accommodation:
- Guesthouse outside Reykjavik (per room): 20,000–35,000 ISK (~$145–255)
- Hostel dorm in Reykjavik: 7,000–10,000 ISK (~$50–73) per person
- Budget Reykjavik hotel: from 25,000 ISK (~$180) per room
- Campsite per person: 1,500–2,500 ISK (~$11–18)
See how much does Iceland cost and Iceland on a budget for fuller breakdowns.
Accessing money at Keflavik Airport
When you land at Keflavik, you have immediate options for money:
ATMs: Two or three ATMs are available in the arrivals hall, accessible after passing through border control. They dispense ISK and are operated by Arion Bank and Íslandsbanki. They accept major international cards.
Currency exchange desk: Arion Bank has an exchange desk in arrivals. Open during main flight arrivals. Rates are airport rates — significantly below interbank rate. Not recommended except for emergency.
Should I get ISK at the airport? If you have a card with no foreign transaction fees, get none — you will not need cash. If your card charges foreign fees and you want a small emergency cash supply, withdraw 10,000–15,000 ISK from the ATM (better rate than the exchange desk) and use your card for everything else.
Understanding ISK amounts at a glance
Iceland’s prices can seem abstract because the numbers are large. A few anchor points to internalise:
- 1,000 ISK ≈ $7 USD / €7 EUR
- 5,000 ISK ≈ $37 / €33
- 10,000 ISK ≈ $73 / €67
- 15,000 ISK ≈ $110 / €100
- 50,000 ISK ≈ $365 / €333
A quick mental calculation: Divide ISK by 140 to get approximate USD, or by 150 to get approximate EUR. This is good enough for real-time price assessment without a calculator.
Why the numbers look shocking: A “budget” meal in a Reykjavik café might cost 2,500 ISK. Your brain reads “2,500” and expects a problem. Dividing by 140 gives $18 — expensive by global standards, but normal for an expensive northern European country.
Cash situations that can still arise
While Iceland is overwhelmingly cashless, three situations occasionally require cash or can be smoother with it:
Farmers’ markets and craft fairs: Some small vendors at weekend markets in Reykjavik (Kolaportið flea market, outdoor markets in summer) are cash-only or cash-preferred.
Very remote guesthouses: A handful of the most isolated highland-adjacent guesthouses have unreliable card terminals. Not common, but worth asking “accept card?” (taka þið kort?) when booking.
Tipping abroad: If you visit other countries before or after Iceland and need cash for tips in those countries, Iceland is not the place to exchange currency. The rates are poor.
Recommendation: Withdraw 10,000–15,000 ISK ($70–110) from an ATM in Reykjavik at the start of your trip. This covers any cash-only scenarios without leaving you carrying unnecessary amounts.
Booking and paying for tours
Most Iceland tour operators (Reykjavik Excursions, Arctic Adventures, Troll Expeditions, and hundreds of smaller operators) accept card payment online and on arrival. Online booking in advance is generally cheaper than walk-up pricing and guarantees availability.
Cancellation policies: Most operators have a 24–48 hour cancellation window for full refund. Weather cancellations (tours cancelled by the operator due to bad conditions) typically result in a full refund or free reschedule. Read the cancellation policy before booking any activity that could be weather-affected.
Pricing in ISK vs USD/EUR: Many tour sites show prices in multiple currencies. The ISK price is the authoritative one — if you pay in USD or EUR via a card, the conversion happens at your card’s rate. Do not be surprised if the USD amount charged on your statement differs slightly from the advertised USD price due to exchange rate fluctuation.
Currency and money for the budget traveller
Iceland is expensive but some categories have more room than others:
Fixed costs (hard to reduce):
- Accommodation is genuinely expensive throughout Iceland
- Petrol prices are set nationally with minimal variation
- Paid attractions (Blue Lagoon, glacier hikes) have fixed prices
Variable costs (significant room to save):
- Food: a €10 Bónus self-catered dinner vs a €40 restaurant dinner is a genuine €30 saving per meal per person
- Transport: hitchhiking is legal and reasonably common on the Ring Road
- Activities: many of Iceland’s best experiences are free — waterfalls, beaches, scenic drives, hiking
The supermarket card payment advantage: Even at Bónus and Krónan, card payment is standard. You can shop for groceries, pay the campsite, and buy petrol all without handling a single ISK note.
Tipping culture
Iceland does not have a tipping culture. Service charge is included in restaurant prices. Rounding up a bill or tipping is welcome but unusual and never expected. Do not feel obligated. See the full tipping in Iceland guide.
Supermarkets — your budget travel secret
Iceland’s supermarkets are significantly cheaper than restaurants for most meal components. The main chains:
- Bónus (yellow bag logo): cheapest. Wide coverage, including outside Reykjavik.
- Krónan: similar pricing to Bónus, different locations.
- Nettó: mid-range, good produce.
- Víðir / Samkaup: common in smaller towns.
Bónus closes earlier than many other shops — typically 18:30 on weekdays and 16:00 on Saturdays. Plan your shopping accordingly if you are self-catering.
The classic budget meal in Iceland is skyr (yoghurt-like), bread, and smoked lamb or salmon from the supermarket, assembled roadside. Costs under 1,000 ISK per person.
Paying for fuel on the Ring Road
Every N1, Orkan, or ÓB petrol station accepts cards. Some unmanned stations in remote areas require you to insert your card and enter your PIN before pumping. No cashier is involved.
Fuel is expensive — roughly double US prices. Budget significantly for petrol if you are doing the full Ring Road. A compact 2WD car covering 1,332 km (Ring Road) at 8 litres/100 km consumes about 107 litres, costing approximately 33,000–34,000 ISK (~$240) at current prices.
See fuel and gas stations in Iceland for practical guidance on where to fill up.
Budgeting strategies: how to spend less
Iceland is genuinely expensive but not uniformly so. The gap between a frugal approach and a spend-freely approach is enormous.
Self-catering: Buying groceries from Bónus (Iceland’s cheapest supermarket, identifiable by the yellow pig logo) and cooking at guesthouses with self-catering facilities reduces food costs by 60–70% versus eating out for every meal. A week of self-catered breakfasts and lunches with only dinners out cuts $300–500 from a 7-day budget.
Avoiding restaurant markups: Reykjavik restaurant prices near the main tourist streets are 40–60% higher than equivalent quality one street away. Walk two minutes off Laugavegur to find the same food at lower prices.
Free attractions: Many of Iceland’s most spectacular experiences are free — waterfalls, black sand beaches, viewpoints, hiking trails. Paying activities (Blue Lagoon, glacier hikes, whale watching) are worth choosing selectively rather than doing every option.
Petrol strategy: Fuel at Orkan or ÓB petrol stations rather than N1 where possible — Orkan in particular is typically a few ISK per litre cheaper than N1. Discount apps (Orkan’s app) offer further savings.
See Iceland on a budget for a full cost-cutting guide.
Foreign exchange scams and pitfalls
Dynamic Currency Conversion (DCC): The most common money trap. When you pay by card, the terminal sometimes offers to charge you in your home currency (“pay in USD instead of ISK”). The terminal’s conversion rate is typically 3–5% worse than your card’s interbank rate. Always pay in ISK and let your card’s bank handle the conversion.
Commission-free exchange bureaux: Some exchange points advertise “zero commission” but compensate by offering very poor exchange rates. Zero commission means nothing if the rate itself is poor. Compare the rate against xe.com before exchanging.
Airport exchange on arrival: Avoidable entirely. If you land without ISK and absolutely need cash, ATMs in the arrivals hall at Keflavik are accessible immediately after border control and give better rates than exchange desks.
Tax refunds for visitors
Iceland has a tourist tax refund scheme for purchases over 6,000 ISK at participating shops. The refund is approximately 11–15% of the purchase price (depending on the VAT category). Not all shops participate; look for the “Tax Free” logo.
To claim: ask the shop for a tax refund form at time of purchase, get it stamped at the customs office at Keflavik Airport before check-in (allow extra time for this), and claim the refund at the refund desk. Some shops process refunds directly to your card after departure.
Tax refunds are most worth pursuing for larger purchases such as lopapeysa sweaters (25,000–40,000 ISK) or outdoor gear. For small amounts, the effort outweighs the return.
Frequently asked questions about Iceland currency
Should I get ISK before I leave home?
No. Foreign exchange bureaux at home rarely have ISK in stock and offer poor rates. Just bring a card with no foreign transaction fees.
Can I use euros in Iceland?
A handful of tourist-facing businesses in Reykjavik may accept euros, but it is not standard. You will be charged an unfavourable conversion rate. Always pay in ISK.
Are US dollars accepted anywhere?
Rarely and at poor rates. Iceland is not a dollar economy. Pay in ISK.
What should I do if my card stops working?
Most Icelandic ATMs accept international cards. Have the PIN for your card — chip-and-PIN is standard; contactless is available but PIN may be needed for larger amounts. If your card is blocked, contact your bank remotely via the app. Keep a backup card in a separate location.
Is it safe to carry cash in Iceland?
Petty crime is extremely rare in Iceland, so cash security is not a major concern. The practical issue is that you simply rarely need cash.
How do I pay at unmanned petrol stations?
Insert your card, enter your PIN (credit card PINs work as well as debit), and enter the amount you want to authorise (typically maximum to avoid having to repeat the process). The pump dispenses fuel and the actual amount charged is adjusted automatically. Some stations require a specific minimum authorisation amount.
What currency symbol is used for ISK?
Kr or kr, sometimes written after the number (5,000 kr). You may also see “kr.” or just the number with ISK beside it on receipts.
Can I pay with contactless at most places?
Yes. Contactless is widely accepted across Iceland. Apple Pay and Google Pay work at most terminals.
