True conversion
Iceland is more card-friendly than you'd think
Iceland accepts cards almost universally — even hot dog stands and rural campgrounds. You'll rarely need cash. But the FX markup matters: a "0% FX" card costs you nothing extra; a typical bank card can add 2.5% per transaction. On a 7-day trip with ISK 350,000 in spend, that's ISK 8,750 in invisible fees.
Withdrawal fees from Icelandic ATMs (Landsbankinn, Arion banki) are typically ISK 200–400 per transaction for foreign cards. Some UK/EU banks charge additional £/€ per withdrawal. Withdraw larger sums to amortise the fee.
FAQ
Should I get Icelandic cash before?
Almost never. Iceland's ATMs give better rates than exchange counters. Take ISK 20,000–50,000 emergency cash; the rest is fine on card.
Which card is best for Iceland?
Any card with 0% FX markup and 0% ATM fees. Wise, Revolut, and many travel credit cards (Chase Sapphire, Capital One Venture) qualify. Standard Visa/MC from a big bank usually adds 2–3%.
Are cards accepted everywhere?
Over 90% of businesses accept cards, even small ones. Cash is rarely needed unless you're at a small fish market or a private hot spring with no terminal.