Planning a trip to Iceland and wondering how to pay for things once you arrive? You’re not alone. Many travelers are surprised by how modern and cashless Iceland really is—especially in the west, where small towns and remote landscapes meet very efficient payment systems.
Here’s a clear guide to paying in Iceland, with tips tailored to guests staying at Ourhotels.is properties like Hvítá Inn in Borgarfjörður, Stykkishólmur Inn, and Ísafjörður Inn.
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Iceland Is (Almost) Cashless
In everyday life, Icelanders pay for nearly everything with cards or digital payments. From gas stations on lonely stretches of road to cozy cafés in fishing villages, card terminals are everywhere.
You can expect to pay by card for:
– Accommodation at Ourhotels.is (Hvítá Inn, Stykkishólmur Inn, Ísafjörður Inn)
– Restaurants, cafés, and bakeries
– Supermarkets and convenience stores
– Gas stations and self-service pumps
– Tours, activities, and museum tickets
– Parking meters and some public restrooms
Many visitors travel around West Iceland for days without using a single banknote.
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Which Cards Work Best in Iceland?
Most major cards are accepted, especially:
– Visa
– Mastercard
These work almost everywhere, including in small villages and at unmanned gas stations. Contactless payments (tap to pay) are widely used, and Apple Pay / Google Pay are increasingly accepted.
American Express and some other cards may not be accepted in smaller places, so it’s wise to have a Visa or Mastercard as your main card.
At Ourhotels.is properties like Hvítá Inn in Borgarfjörður, Stykkishólmur Inn, and Ísafjörður Inn, you can comfortably pay with standard international cards, and staff can help you if you’re unsure about your options.
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Do You Need Cash in Iceland?
You can easily travel around West Iceland with little or no cash, but having a small amount of Icelandic króna (ISK) can still be useful in a few situations, such as:
– Very small, rural services that might not take cards (though this is rare)
– Local markets or small community events
– Occasional coin-operated facilities
Even in smaller towns like Borgarnes, Stykkishólmur, and Ísafjörður, most businesses are fully set up for card payments. If you’re staying at Hvítá Inn in Borgarfjörður, for example, you’ll find that nearby services in Borgarnes are very card-friendly. The same goes for Stykkishólmur Inn and Ísafjörður Inn—both are in towns where cards are the norm.
If you do want cash, ATMs are available in these towns, and you can withdraw ISK using your debit or credit card.
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Paying for Gas and Self-Service Stations
If you’re driving the Westfjords or the Snæfellsnes Peninsula, you’ll likely use self-service gas stations. These usually require:
– A card with a PIN
– Sometimes a set pre-authorization amount
This is where having a reliable Visa or Mastercard is essential. Before you set off from Hvítá Inn towards the Snæfellsnes Peninsula, or from Stykkishólmur Inn up to the Westfjords and Ísafjörður Inn, make sure:
– Your card is activated for international use
– You know your PIN
– You have at least one backup card if possible
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Tipping and Service Charges
Tipping is not a big part of Icelandic culture. Service charges are usually included in prices, and staff are paid fair wages. You’re not expected to tip in:
– Hotels and guesthouses (including Ourhotels.is properties)
– Restaurants and cafés
– Taxis
If you receive exceptional service and want to leave something extra, you can round up the bill or leave a small tip, usually by card. But it’s never an obligation.
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Currency and Exchange Tips
The local currency is the Icelandic króna (ISK). While some tourist services may show prices in euros or dollars online, you’ll pay in ISK on the ground.
To avoid unnecessary fees:
– Use cards with low foreign transaction fees
– Withdraw cash from ATMs instead of exchanging large amounts at airports
– Pay in ISK when your card terminal asks which currency to use (avoid “dynamic currency conversion” to your home currency, which often has worse rates)
When you book or stay with Ourhotels.is, prices are clearly displayed, and staff can help you understand approximate values in your home currency if needed.
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Digital Payments and Receipts
Iceland is very comfortable with digital solutions. You’ll notice:
– Contactless terminals almost everywhere
– Email receipts available in many shops and hotels
– Online booking and payment options for tours and stays
If you’re staying at Hvítá Inn, Stykkishólmur Inn, or Ísafjörður Inn, you can often manage much of your trip—bookings, confirmations, and payments—directly online through Ourhotels.is, and then simply tap your card when you arrive.
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How to Prepare Before You Travel
To make paying in Iceland smooth and stress-free, it helps to:
1. Bring at least two cards (ideally Visa/Mastercard).
2. Confirm your PINs and international usage with your bank.
3. Consider a travel card with low foreign transaction fees.
4. Plan to use cards for almost everything, with a small amount of ISK as backup.
Once you’re here, you’ll see how easy it is. Whether you’re waking up to river views at Hvítá Inn in Borgarfjörður, exploring the colorful harbor from Stykkishólmur Inn, or ending a long Westfjords drive at Ísafjörður Inn, you can focus on the landscapes and experiences—not on hunting for cash.
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Staying with Ourhotels.is in West Iceland
Ourhotels.is offers comfortable, well-located stays across West Iceland, all in places where paying by card is simple and secure:
– Hvítá Inn – A peaceful base in Borgarfjörður, close to Borgarnes and the scenic Hvítá river valley.
– Stykkishólmur Inn – Perfect for exploring the Snæfellsnes Peninsula and the charming harbor town of Stykkishólmur.
– Ísafjörður Inn – A welcoming stop in the heart of the Westfjords, ideal after long days of coastal drives and mountain passes.
At each of these inns, you can rely on modern payment options, friendly local advice, and an easy, cash-light stay.
By planning to use cards as your main payment method—and keeping just a little cash for rare situations—you’ll be perfectly prepared to enjoy West Iceland with Ourhotels.is.
