Money & Payments in Reykjavík (2026)

Good to know

Good to Know

When offered a choice to pay in Icelandic krónur or your home currency, it's almost always cheaper to pay in Icelandic krónur, as the exchange will be made by your bank and not the retailer.
Know your card's PIN before you leave home — Iceland uses chip-and-PIN for virtually every card transaction.
Iceland is one of the most card-friendly countries on earth — cards work almost everywhere, even remote Ring Road gas pumps — but DCC and 3% FX fees can still quietly cost $80–$120 on a typical trip.
If you intend to tip, you will need cash because the card readers don't offer the option to add a tip to your card; you can ask if they can enter a rounded total on the card terminal.
In recent years, increased tourism has brought some changes to the traditional no-tipping approach, particularly in Reykjavík and other popular destinations; some service staff may now be more accustomed to receiving tips from international visitors, but this hasn't fundamentally altered the non-tipping culture.

ATM Access

Fees: Typical fees include a local ATM fee plus your bank's foreign transaction fee; withdraw larger amounts less often to reduce fees.
Availability: ATMs are available all over Reykjavík, and you can withdraw local currency as needed.
Best Practice: Avoid dynamic currency conversion and always pay in the local currency.

Cash Needs

Necessity: It's relatively rare in Iceland to find you have to offer cash to pay for something and there's no other way of paying; some businesses have gone completely cashless, while others will accept cash and cards.
Recommendation: Carrying a small amount (like 5,000–10,000 ISK) isn't a bad idea just in case.
Currency Exchange: You can exchange many currencies for Icelandic krona at the airport or any Icelandic local bank; these banks will accept USD, EUR, GBP, CAD, and all forms of other Scandinavian krona.

Tipping Norms

Restaurants: In Iceland, tipping in a restaurant, even a fancy one, is never expected but always appreciated; the cost of the food you've just eaten or the drinks you've ordered takes any taxes and a service charge into account.
Tipping Jars: Tipping jars are found near the registers at small bars, fast food restaurants, or cafés; the money donated to these jars is generally used to fund employee social gatherings as a way for staff to have fun together outside of work, but don't feel pressured to donate.
General Status: Tipping is not customary or expected in Iceland.
Optional Gesture: While not expected or necessary, small tips for exceptional service are accepted with appreciation; if your server provided truly memorable service, a small tip of 5-10% would be a kind gesture of appreciation.
Why Not Expected: It isn't a custom in Iceland to tip for any type of service; the cost of everything, from tours to meals to accommodations, includes good service and is priced in a way that covers the business costs.
Cultural Acceptance: Leaving a tip in Iceland isn't illegal, nor is it considered rude.
Card Payment Tipping: Most card terminals in Iceland will ask if you want to add a tip after you enter your PIN; you can enter an amount or a percentage right there on screen.
Wage Context: Iceland has strong labor laws that ensure service workers—including restaurant servers, bartenders, and hotel staff—receive fair wages and benefits; unlike in the United States where servers often depend on tips to reach minimum wage, Icelandic workers earn a living wage from their employers.

Card Acceptance

Overview: International credit and debit cards are widely accepted using contactless (tap) payment or chip and PIN.
Mobile Wallets: Apple Pay is widely accepted and works in supermarkets, restaurants, bars, most petrol stations, and many tour operators. Google Pay are widely accepted around the country.
Acceptance Scope: Credit and debit cards are accepted everywhere — from Reykjavík cafés to petrol stations in the middle of nowhere, and you likely won't run into any small businesses in any of the small Icelandic towns that only take cash.
Contactless Limits: The limit for contactless payments is ISK 7,500 per transaction.
Chip Pin Requirement: You must know your PIN and Iceland uses chip-and-PIN for virtually every card transaction.

Card Networks

Discover: Discover cards are rarely accepted.
Visa Mastercard: VISA and MasterCard are the major credit cards in Iceland and are serviced by all banks in the country.
American Express: American Express is accepted in many larger hotels and restaurants in Reykjavík, but not universally, especially outside the capital.

Banking

Payment Methods: Iceland is highly digitalized; cash is rarely used. Digital payments, bank cards, and mobile payment apps are standard. Most businesses accept card payments.
Account Setup For Foreigners: Specific current information for foreign digital nomads opening bank accounts in Reykjavik could not be verified through available sources. Expats registering for longer-term residency can apply for an Icelandic ID number at a local tax office, which is required for banking and most financial services.

AI-generated estimateData refreshed July 2026

Sources cited for this category

These are the sources cited in this money & payments research for this city. Individual figures may not each trace to one of them.

More About Reykjavík

Data last updated July 2026 · Verify anything important.

Money & Payments in Reykjavík