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CONTENTS
INTRODUCTION: HOW TO PAY IN ICELAND? 💥
On every trip, the question comes up: how do you pay on site? And the answer depends a lot on the country. Before leaving for Iceland 🇮🇸, it’s important to know how you’re going to pay so you can make the best choice… and avoid losing money on bank fees. In this article, we look at the 3 ways to pay and withdraw money in Iceland, and what we did on our 12-day road trip.
The currency of Iceland is the Icelandic króna (ISK). Iceland isn’t in the eurozone. 👉 In October 2026, €1 is worth about 140 ISK (the rate changes every day, between 136 and 143 ISK over the year). For quick math on site: 1,000 ISK ≈ €7.
🗺️ Planning your trip? Find all our tips and articles in our complete guide to traveling in Iceland.
⚠️ Before you go, also read our 12 mistakes to avoid in Iceland: car, weather, wind, food budget… our stories and our solutions.
THE MAP OF OUR ICELAND ROAD TRIP 🗺️
To help you plan your itinerary, we’ve gathered every place from our 12-day road trip in Iceland 🇮🇸 on an interactive map: waterfalls, glaciers, black sand beaches, hot springs and stopover towns, all the way around Route 1. Click on each pin to discover the place in detail 📍. And to keep it handy during your trip, open it in Google Maps: you’ll find it easily on your phone 📱.
Our itinerary
Our trip to Iceland
12 days10 stops1 full loop of Route 1Dacia Duster 4x4 in winter
The stops, in order
- 1
Reykjavik
1 night
Arrival at Keflavík and car pick-up
- 2
Selfoss
1 night
Golden Circle: Þingvellir, Geysir, Gullfoss and Kerið
- 3
Hof
2 nights
South coast waterfalls, Reynisfjara, ice cave and Diamond Beach
- 4
Reyðarfjörður
1 night
The Eastfjords and the pebble beaches of Hvalnes
- 5
Egilsstaðir
1 night
Seyðisfjörður, its blue church and its rainbow street
- 6
Mývatn
1 night
Dettifoss, Hverir and the Mývatn Nature Baths
- 7
Akureyri
1 night
Hverfjall, Dimmuborgir and Goðafoss
- 8
Bifröst
1 night
Glaumbær turf houses, Grábrók crater
- 9
Hvalfjörður
1 night
The Snæfellsnes Peninsula and Kirkjufell
- 10
Reykjavik
1 night
Fagradalsfjall volcano, Blue Lagoon and Sky Lagoon
PAYING BY BANK CARD IN ICELAND 💳
For me, it’s THE solution in Iceland! Unlike other countries like Mexico, card is king: even in the remotest corners of Iceland, cards are accepted. Hotels, restaurants, tourist sites, gas stations, parking, tours… everything is paid by card, often even for a few hundred króna. Honestly, we never had a single problem with our cards: it’s even easier than in France.
CREDIT OR DEBIT CARD FOR CAR RENTAL
For car rental, most agencies require a credit card and refuse debit cards, which most people have in France. Check carefully before booking so you don’t end up at the counter having to pay a bigger deposit. We only had a debit card, and at Blue Car Rental, it worked with no problem at all. All the details are in our article on renting a car in Iceland.
CHOOSING A CARD WITH NO FOREIGN FEES
Since you’ll be paying for everything by card, the key is to have a bank that doesn’t charge fees abroad (Boursorama, Revolut, N26…), or to take an international option with your current bank. It’s one of the priorities before you leave: over a whole trip, bank fees can quickly add up to tens or even hundreds of euros.
TIP: there are various online banks, like Revolut, Hello bank!, Fortuneo or N26 (French and European banks). On our trip, we’d chosen Boursorama Banque: the Visa Ultim card is free, with no commission on payments abroad. Adeline had taken a one-month no-fee option with her bank.
PAYMENTS TO KNOW ABOUT ON SITE ⛽
GAS PUMPS AND YOUR PIN
Outside the towns, many gas stations are automated, with no staff. The pumps generally ask for your card’s PIN: make sure you know it before you leave. If your card doesn’t work, you can buy a prepaid card from the station’s brand (N1, Olís, Orkan…) in their shops during opening hours. In the East and North, stations are far apart: fill up whenever you can.
PARKING WITH THE PARKA APP
More and more natural sites have paid parking (Þingvellir, Geysir, Jökulsárlón, the Fagradalsfjall volcano…), around 1,000 ISK per day. The easiest way is to pay with the Parka app, which accepts bank cards: your license plate is often photographed at the entrance. We explain everything in our essential apps for Iceland 📱.
THE PER-KILOMETER TAX SINCE 2026
Since January 1, 2026, a per-kilometer tax applies to all vehicles, including rental cars. You don’t have to do anything yourself: the rental company charges it to your card, per kilometer or as a daily flat rate (1,550 ISK per day at Blue Car Rental in 2026). Just remember to factor it into your budget.
💸 How much should you plan in total? All our figures, item by item, are in our article Iceland travel budget.
RENTING A CAR IN ICELAND 🚗
To explore Iceland, we think a rental car is the best option: you’re free to string together waterfalls, glaciers, black sand beaches and hot springs at your own pace, and stop whenever a landscape catches your eye, without depending on organized tours 🏔️.
We drove all the way around Iceland on Route 1 in a 4×4, in the middle of March, and everything went really well. Here’s the agency we used and recommend, plus an alternative if you’d rather compare 👇
Our rental tip
Renting a car in Iceland
The agency we used, and an alternative to compare.
Blue Car Rental
Iceland's largest local rental company
We rented our Dacia Duster 4x4 with them for the whole loop around the island: we recommend them without hesitation!
Our budget€62013 days, full insurance · ~€48/day
- Tested on all of Route 1
- Insurance included, no deposit
- Free cancellation
DiscoverCars
Rental comparison site
To compare several Icelandic rental companies in a single search.
Excellent rating290,000+ Trustpilot reviews
- 1,000+ rental companies compared
- Free cancellation
- 24/7 support
To compare before you choose
Good to know before you rent
- Gravel, sand and ashThe wind blasts gravel and sand onto the bodywork: make sure these protections are included.
- Check the roads every morningLook at road.is and safetravel.is before setting off: in winter, a road can close within a few hours.
- Your French driving license is enoughIt's accepted in Iceland. The international driving permit is optional: only if you want one.
- Photos and video at pick-upFilm the car from every angle when you collect it, to avoid any dispute when you return it.
- Fill up whenever you canGas stations are rare in the East and North, and often self-service: bring a card with a PIN code.
- Hold on to the doorsIn strong winds, a door can be ripped off as it opens: park facing the wind and open gently.
CURRENCY EXCHANGE: DO YOU NEED ICELANDIC KRÓNA? 💵
If you still want cash, you can go through a currency exchange office or an ATM. Exchanging means swapping your euros for Icelandic króna (ISK). Exchange offices are rare: you’ll find them at the airport and in Reykjavik, but very few elsewhere 🤙. Rates can vary from one office to another, so compare before exchanging, and check their opening hours, which are often limited.
To be completely honest, we didn’t need to exchange any money. We simply withdrew €100 in króna when we arrived, “just in case.” A bank card lets you do everything in Iceland, without worrying about the conversion rate. In many countries, having some cash on arrival is useful, but in Iceland, it’s really not necessary 😉.
ATMS IN ICELAND 🏧
Another method is to withdraw money from an ATM (hraðbanki). They accept Visa and Mastercard and can be found in towns and tourist spots. But watch out for fees: when you withdraw abroad, your home bank may take a commission, and the Icelandic bank may charge one too, which you can’t avoid.
So check with your bank whether you can get a no-fee withdrawal option, or use an online bank. ATMs aren’t the most practical option in Iceland: the country is vast and often has no ATMs outside the towns. In Reykjavik, however, you’ll have no trouble finding one 😉.
THINGS TO KNOW 🥰
As always in our articles, here are our tips for paying in Iceland with no nasty surprises:
- 💳 Bank cards are accepted everywhere, even for small amounts: you can leave without cash.
- 🏦 Choose an online bank or an international option to avoid fees on every payment.
- 📞 Contact your bank before you leave to find out its foreign fees and raise your limit if needed.
- 🔢 Make sure you know your card’s PIN, essential at automated gas pumps.
- 💶 If a terminal offers to let you pay in euros, always choose Icelandic króna: the merchant’s conversion is often less favorable.
- 🚗 Check your car rental quote carefully (deposit, accepted card, per-kilometer tax).
- 🙏 No need to tip in Iceland: service is included in the prices.
- 💰 The country is expensive: to find accommodation at the best price, read our article where to stay in Iceland.
OUR TAKE: CARD OR KRÓNA? 💭
Being used to traveling, we’re starting to understand the system well, but it’s not always easy when you don’t travel much. In Iceland, the answer is clear: we paid for everything by bank card, restaurants, accommodation, gas, activities… with only €100 withdrawn in króna at the start, just in case. It was really very easy, even better than we’d imagined: one less thing to worry about on the trip.
We each had a card with no foreign fees: Adeline had taken a one-month option, and I’m with Boursorama. The result: no fees from our French banks. By the way, if you’d like to switch to Boursorama, you can use my referral code “BARO8996” to get the current welcome offer (up to €100 depending on the offer). In other countries, like Mexico, it’s different, but in Iceland, there’s nothing to think about: a bank card is the best solution.
👉 What about you? Do you usually bring cash or go 100% card?
FAQ: YOUR QUESTIONS ABOUT MONEY IN ICELAND ❓
These are the questions people often ask before leaving about currency and payments in Iceland. Feel free to ask yours in the comments, and I’ll add to this FAQ 💬.
Iceland’s currency is the Icelandic króna (ISK). Iceland isn’t part of the eurozone. In October 2026, €1 is worth about 140 ISK, or about €7 for 1,000 ISK.
No, payments are made in Icelandic króna. But you don’t need to have any: bank cards are accepted everywhere, and the conversion happens automatically.
No, almost everything can be paid by card, even small amounts. We just withdrew €100 in króna just in case, and hardly used it.
A card with no foreign fees, for example from an online bank, or your usual card with an international option. For car rental, check whether the company accepts debit cards: Blue Car Rental does.
It all depends on your bank: many banks charge for every payment and every withdrawal abroad. With an online bank or an international option, you can pay with no fees. For withdrawals, the Icelandic bank may also charge a fee.
By bank card, right at the pump. Many stations are automated and ask for your card’s PIN. Otherwise, buy a prepaid card from the station in its shop.
No, tipping isn’t customary in Iceland: service is included in the prices.
Yes, it’s one of the most expensive countries in Europe, especially for accommodation, car rental and restaurants. For 11 nights, for example, we paid €1,366 in accommodation for two.
There’s no legal minimum wage in Iceland. Minimum wages are set by collective agreements in each sector: according to sources, they exceed 500,000 ISK gross per month in 2026. That partly explains the high cost of living.
Exchange offices are rare: mainly at Keflavík airport and in Reykjavik. Compare rates before exchanging. Honestly, with a no-fee card, exchanging money isn’t necessary.
WHERE TO STAY IN ICELAND 🏨
During our 12-day road trip in Iceland 🇮🇸, we slept in 9 different places, alternating between hotels and guesthouses, almost all booked on Booking. Changing accommodation every night is the best way to loop around the island without piling up hours of driving 🚗.
OUR TIPS FOR CHOOSING THE RIGHT PLACE TO STAY
- 📅 Book ahead: outside Reykjavik, accommodation is scarce and the best places go fast.
- 🍳 Breakfast included: very handy, because cafés and restaurants are rare on the road. We often used it to make our lunch sandwiches.
- 🛒 A kitchen in remote areas: around Jökulsárlón, the nearest supermarket can be more than an hour’s drive away. Do your shopping before you arrive.
- ♨️ A hot tub: after a day in the cold and wind, it’s pure bliss. Several of our places had one.
- 🌌 Away from the lights: in winter, a place in the countryside gives you a better chance of seeing the northern lights right from your door.
- ✅ Free cancellation, to stay flexible if the weather forces you to change your itinerary.
HOTEL OR GUESTHOUSE IN ICELAND?
Both have their advantages. A guesthouse is often cozier, sometimes with a kitchen to cook your own meals. A hotel is more convenient for a one-night stop, with a reception desk, a restaurant and often breakfast included. As for us, we liked both. It all depends on what you want, your budget and how you like to travel.
HOW MUCH DOES ACCOMMODATION COST IN ICELAND?
Iceland isn’t a cheap destination, and accommodation is one of the biggest items in the budget. We paid between €78 and €162 a night for two. To be completely transparent with you: €1,366 for 11 nights, or about €124 a night on average (that was in 2023, prices may have changed since).
👇 Here are the 8 places where we slept during our road trip that still welcome travelers, in the order of our itinerary.
Tested during our road trip
Our 8 places to stay in Iceland
GuesthouseHotel
-
HotelReykjavik201 Hótel (Kópavogur)
Right next to the capital, handy for the first and last night of the road trip.
- Double room
- Breakfast included
- Close to Reykjavik
- Guesthouse
SelfossLambastaðir Guesthouse
A quiet guesthouse, perfect for sleeping after a day on the Golden Circle.
- Hot tub and sauna
- Breakfast included
- After the Golden Circle
- GuesthouseOur favorite
SvínafellThe Potato Storage
Our absolute favorite of the trip: an exceptional place at the foot of the glaciers.
- Our best place to stay
- Fully equipped kitchen
- Close to Jökulsárlón
- Hotel
EgilsstaðirHótel Eyvindará
A quiet hotel on the edge of Egilsstaðir, with a hot tub to unwind.
- Hot tub
- Breakfast included
- Near Seyðisfjörður
- Hotel
MývatnVogafjós Farm Resort
A farm on the shores of Lake Mývatn, chosen for watching the northern lights.
- Ideal for the northern lights
- On-site restaurant
- Breakfast included
- Hotel
AkureyriCentrum Hótel
Right in the town center, a stone's throw from Akureyri church: you can do everything on foot.
- Town center
- Breakfast included
- Superior room
- Hotel
BifröstHraunsnef Country Hotel
A country hotel in the middle of nowhere, with a hot tub and a restaurant.
- Hot tub
- On-site restaurant
- Breakfast included
- Guesthouse
HvalfjörðurHótel Laxárbakki
A stop on the edge of the fjord, ideal after a day on Snæfellsnes.
- Hot tub
- On-site restaurant
- Heading back to Reykjavik
MY MUST-HAVE TRAVEL GEAR 🧳
It’s a question that comes up a lot when preparing a trip “What should I bring?” And in Iceland even more than elsewhere, because the cold, wind and rain can quickly ruin a day if you’re poorly equipped 🥶. That’s why you’ll find below the travel accessories we had in our bags. Planning ahead and getting these items in advance helps you save money and avoid paying for some of them on the spot, where everything costs much more 💸 These are the accessories we took to Iceland in the middle of winter 👇.
Our road trip checklist
What to pack for Iceland?
What we had in our bags for 12 winter days. Good news: the outlets are the same as in France, no adapter needed.
0 / 12 in my suitcase · check what you already have
- Essential
Cold & snowHeat Holders thermal socks
The ones we took: to keep your feet warm on walks in the snow.
- Essential
Cold & snowThermal underwear
Thermal leggings and T-shirt under your clothes: the basics for facing the Icelandic wind.
- Essential
Cold & snowWarm gloves
A pair of ski gloves against the wind, and a thin pair for taking photos.
- Essential
Cold & snowBeanie and neck warmer
The wind is often strong, especially near the waterfalls and on the black sand beaches.
- Essential
Cold & snowWaterproof hiking boots
Icy trails, snow and waterfall spray: dry feet all day long.
- Essential
ElectronicsPower bank
The cold drains batteries fast: your phone lasts until evening.
- Recommended
Baths & waterWaterproof phone pouch
To take photos in the hot baths with no risk to your phone.
- Recommended
Baths & waterMicrofiber towel
Light and quick-drying: handy for baths and hot springs.
- Recommended
Baths & waterWater bottle
Tap water is excellent in Iceland: no need to buy bottles.
- Bonus
Travel & securityEmergency blanket
Keep it in the car, in case a closed road forces you to wait.
- Bonus
Travel & securityTSA lock
To lock your suitcase on the plane, with no risk of it being broken at security.
- Bonus
Travel & securityAirTag
To track your suitcase if your luggage is delayed or lost.
THANKS FOR YOUR FEEDBACK 
Thanks for reading this article all the way to the end 🙏! We hope it helps you plan your trip.
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