Pay for fuel, goods, taxis, food, and tours in Iceland

Last updated: March 2026

Iceland is one of the most cashless societies on earth. I’ve lived here my whole life, and I genuinely cannot remember the last time I paid for something with notes and coins. If you’re planning a trip, the short answer is: bring your card, know your PIN, and don’t worry about carrying cash.

Here’s everything you need to know before you arrive.

Cards — What Works and What Doesn’t

Visa and Mastercard are accepted everywhere in Iceland — shops, restaurants, petrol stations, guesthouses, tour operators, campsites, and market stalls. Everywhere. American Express is accepted in many larger hotels and restaurants in Reykjavík, but is not universally accepted, especially outside the capital. Discover cards are rarely accepted.

One rule applies no matter which card you use: you must know your PIN. Iceland uses chip-and-PIN for virtually every card transaction. Contactless-only cards without a PIN will cause problems. Check your PIN before you leave home.

Contactless and Mobile Payments

Contactless payments work well across Iceland. Apple Pay is widely accepted and is my personal go-to — it works in supermarkets, restaurants, bars, most petrol stations, and many tour operators. Google Pay is also supported. Samsung Pay has limited support, and I wouldn’t rely on it.

One practical tip: at self-service petrol pumps, Apple Pay now works at many stations. But not all. If you’re doing a long road trip, keep your physical card on hand as a backup.

Do You Need Icelandic Króna (ISK)?

Technically, no. Card payments are so universal that most visitors never exchange a single note. The Icelandic Króna (ISK) fluctuates against other currencies — sometimes significantly — so exchanging large amounts in advance is rarely wise.
That said, I’d recommend having a small amount of ISK available, roughly 5,000–10,000 kr (about $35–70), for situations where cards might not be practical — small farm stalls, some market vendors, emergency situations in very remote areas. This is rare, but it happens.
If you do need cash, use ATMs in Iceland rather than exchanging at the airport. Airport exchange rates are poor. ATMs are widely available in Reykjavík and in larger towns like Akureyri, Selfoss, Egilsstaðir, and Ísafjörður. In the Westfjords and the remote Highlands, plan ahead — ATMs can be far apart.

Paying for Petrol — The Pre-authorisation Quirk

This confuses almost every visitor. When you insert your card at an Icelandic self-service petrol pump, the system places a temporary hold on a large amount — often 15,000–30,000 ISK (roughly $110–220). This is not a charge; it’s a pre-authorisation to confirm your card is valid.

Once you finish pumping, only the actual cost of the fuel is charged. The excess hold is released, but this can take 2–5 business days to clear, depending on your bank. Don’t panic when you see the large amount on your statement — it will correct itself.
Petrol is expensive in Iceland. This is not a glitch. I’m sorry.

Paying for Tours Online

Booking tours in advance online is strongly recommended, especially in summer. All reputable Icelandic tour operators accept Visa and Mastercard through their booking systems. If you subscribe to the Stuck in Iceland newsletter, you’ll receive exclusive discount codes for over 50 partners — saving you 10–20% on glacier hikes, whale watching, Northern Lights tours, car rental, camper vans, geothermal pools, and more.

Tipping in Iceland

Tipping is not customary in Iceland and is not expected. The philosophy here is that service workers earn a fair wage — they’re not dependent on tips to make ends meet. In restaurants, bars, and on tours, your bill is your bill.

That said, tipping is not offensive. If you’ve had exceptional service and want to leave something, it will be appreciated. Some people accept it, some will politely decline. Read the room. I never tip at home, but I won’t tell you how to spend your money.

Public Transport in Reykjavík — The Klappið App

If you plan to use Reykjavík’s bus network (Strætó), download the Klappið app before you arrive. It allows you to buy tickets, plan routes, and pay for bus travel digitally. You can pay by card within the app. Cash is accepted on buses, but change is not given, which makes it awkward in practice.

Strætó buses also connect Reykjavík to several towns around Iceland — Akranes, Selfoss, Hveragerði, and more. For budget-conscious travellers, this can be a good alternative to renting a car for shorter distances.

Taxis and Ridesharing

All taxis in Reykjavík accept card payments with PIN and Apple Pay. Tipping is not required. Only use licensed taxis from the two legitimate companies: BSR and Hreyfill. Scammers posing as taxi drivers have targeted tourists — always choose a clearly marked, official cab.

The Hopp and Hreyfill taxi apps operate similarly to Uber in Reykjavík. You book and pay within the app, which is convenient and avoids any awkward payment moment at the end of a ride. Download it before you arrive. Uber itself is not available in Iceland.

Parking Apps

Two apps make paying for parking in Iceland straightforward:

EasyPark — the main parking payment app in Reykjavík and around Iceland. Download it, add your card, and pay for parking by the minute without needing coins or a machine.

Parka — useful for pre-booking spots at camping grounds around Iceland if you’re travelling by campervan.
Set both apps up and link your card before you arrive in Iceland. Trying to set up a new payment account when you’re standing in a car park in the rain is not fun.

A Final Reminder About Your PIN

I’ve mentioned it several times, but it bears repeating: know your PIN. Iceland is chip-and-PIN, not chip-and-signature. If you don’t know your PIN, contact your bank before your trip and request it. Some banks take several days to post a PIN reminder. Don’t leave this to the last minute.

Safe travels — and enjoy Iceland for less with the Stuck in Iceland discount codes.
— Jón Heiðar, Editor, Stuck in Iceland Travel Magazine