How to pay for things in Iceland – pay for fuel, goods, taxis, food, and tours

How to pay for things in Iceland is one of the most frequently asked questions on Facebook groups and other online forums about traveling to Iceland. The answer is simple. Iceland is virtually a cashless country. Paying with bills or coins is the exception while paying with credit cards or debit cards is the norm. Almost all merchants accept cash if that is your thing. Stores, restaurants, gas stations, and supermarkets will usually only take the local currency, Icelandic Króna, which has the unpleasant habit of fluctuating against other currencies. However, I would not bother having a lot of money on hand. The locals certainly do not do that. I

What payment cards work in Iceland?

All retailers will accept your Mastercard and VISA cards. However, they might not accept American Express or Discover cards. Always have your PIN ready. You will not be able to pay for things if you do not have your PIN. The same will go for ATMs, and you will not be able to withdraw cash if you do not have your PIN at your fingertips. Did I mention that you need your PIN for your physical card? 🙂

Apple Pay works perfectly in Iceland

But what about virtual payment methods? Apple Pay is widely accepted. It works in shops, supermarkets, restaurants, and bars. You can also, for example, pay for gasoline at many self-service pumps with Apple Pay. Garmin Pay is advertised here, so I suppose that works too. As Google Pay, that is supported here as far as I know but I don’t think Samsung Pay is available in Iceland.

Paying for tours

I recommend booking tours online. All reputable Icelandic travel sites accept regular credit cards. Check if my promo codes can help you save money on the tours you want to book.

Tipping

Tipping is not customary in Iceland. The attitude is that people in the service industry should make a living wage, and they will not bend over backward to earn a tip. My advice is that you read the room before offering tips. Offering a tip is rarely a faux pas, and some people will accept it. Don’t be too surprised if your tip is rejected out of hand. This ambiguity about tipping is equally true for bars, restaurants, and tours. I never tip while at home, but who am I to tell you how to spend your money?

Bring your physical credit card to Iceland, just in case

However, in the countryside, you may require your physical card to pay for gasoline. Some people asked whether they needed their physical card, and my response would be that I would bring it. But again, your debit or credit card is only useful with your PIN.

What is the deal with a too high amount being shown on your card record when paying for gasoline?

Icelandic Self service fuel pumps often work in a strange way where they seemingly withdraw a large sum of money, something like 20 – 30 thousand Icelandic krona (roughly $140 – 210) off your credit card when you enter in your card. You may end up pumping gas for much less but still seeing the too high amount on your credit record. Don’t worry, this will be lowered down to the actual amount of money you owe. But the correction might happen a few days later. I have never heard about anyone being ripped off. However, gasoline is very expensive in Iceland so the actual price is extortionate to travelers and locals!

Paying for public transport

If you want to use public transport in Reykjavik get the ‘Klappið‘ app. Also, you can travel by bus from Reykjavik to many places in Iceland. It can be an excellent way to save on transport.

How to pay for taxis and parking

Taxis all accept credit cards (with PIN) and Apple Pay. Tipping is not required

If you want to pay for parking quickly, you can download either of these two apps:

• Parka. This app will enable you to pre-book spots at camping grounds around Iceland.
• EasyPark

Hint: Sign up for the services mentioned above before coming to Iceland to ensure that your credit card works with them.

And did I mention that you need your PIN to be able to use your physical card?