Using ATMs in Iceland is generally easy and safe, but a few smart choices can save you money and stress—especially if you’re exploring the west of Iceland and staying with us at Ourhotels.is.
First, you don’t need to arrive with a lot of Icelandic cash. ATMs are widely available in towns and at most banks, and cards are accepted almost everywhere, even for small purchases. When you land in Keflavík or arrive in Reykjavík, you can withdraw a modest amount of Icelandic króna (ISK) for small rural shops, swimming pools, or occasional card-free situations. Then, as you travel west and stay at places like Hvítá Inn in Borgarfjörður (near Borgarnes), Stykkishólmur Inn, or Ísafjörður Inn, you’ll find ATMs in the nearby towns if you need to top up.
One of the most important ATM tips for Iceland travelers is to always choose to be charged in Icelandic króna, not in your home currency. Many ATMs and card terminals will offer “dynamic currency conversion” and show you the amount in euros, dollars, or pounds. It looks convenient, but it usually comes with a worse exchange rate and extra fees. Select ISK instead and let your own bank handle the conversion—this is almost always cheaper.
Before you leave home, check with your bank about foreign transaction fees and ATM withdrawal charges. Some banks add a percentage fee to every purchase abroad, while others charge a flat fee per withdrawal. If your bank charges per withdrawal, it’s better to take out a slightly larger amount less often. When you’re staying at Hvítá Inn in Borgarfjörður, for example, you can plan a stop in Borgarnes to use the ATM there and avoid multiple small withdrawals. The same applies when you’re based at Stykkishólmur Inn on the Snæfellsnes Peninsula or Ísafjörður Inn in the Westfjords—use the ATMs in town once or twice rather than every day.
Iceland is very card-friendly, but it’s wise to carry at least a little cash, especially in more remote areas. In Borgarfjörður, around Hvítá Inn, you might find small countryside services or local events where cash is handy. In Stykkishólmur, most places take cards, but a small amount of ISK can be useful for local markets or older parking meters. In Ísafjörður and the surrounding Westfjords, cards dominate, yet cash can still be useful for small, rural stops or if a card terminal is temporarily down due to weather or connectivity.
Another tip: use debit cards for ATM withdrawals whenever possible. Credit card cash advances can trigger higher fees and interest from your bank. Also, let your bank know you’re traveling to Iceland so they don’t block your card when they see foreign transactions. It’s a simple step that can prevent awkward moments at the ATM or when paying for dinner at one of the restaurants near our inns.
Security-wise, Iceland is considered very safe, and ATMs are generally reliable. Still, use the same common sense you would anywhere: shield your PIN, avoid accepting help from strangers at the machine, and use ATMs attached to banks or inside supermarkets when possible. If you’re unsure where to find a trustworthy ATM near Hvítá Inn, Stykkishólmur Inn, or Ísafjörður Inn, our staff are happy to point you to the nearest bank or reliable machine.
It’s also worth having a backup card stored separately from your main wallet. If you lose one card while exploring waterfalls in Borgarfjörður, taking a boat tour from Stykkishólmur, or hiking around Ísafjörður, you’ll still have access to money. Many travelers also like to keep a small emergency stash of ISK in their luggage, just in case.
Finally, remember that you don’t need to carry large amounts of cash in Iceland. Between ATMs, card payments, and contactless options, you can travel light and still pay for almost everything with ease. When you stay with Ourhotels.is—whether at Hvítá Inn in Borgarfjörður, Stykkishólmur Inn, or Ísafjörður Inn—you’re always close to a town with ATM access, and our teams can help you plan your withdrawals so you avoid unnecessary fees and hassles.
By following these simple ATM tips, you’ll spend less time worrying about money and more time enjoying hot springs, coastal views, and the unique landscapes of West Iceland.
