Íslenska
Money in Iceland
The Icelandic Krona (ISK) and the culture of paying in Iceland
There are important things to be conversant about when travelling, one of which is money asides safety and language differences. So, you should know that when travelling to Iceland, there will be a lot of things different from what you are familiar with. You need to know that this applies to any international travel you might want to embark on but the focus here in this article is Iceland. It is important to have a piece of reasonable knowledge about the money details and payment structure in Iceland as part of your pre-plans before setting out; this will help make your travel bothersome.
The abbreviation for the Icelandic Króna is ISK however you could also see it written as IKR which in most cases is not regarded as the correct form. Oftentimes, on price tags in shops, it is written as KR without the ‘I’ before it. There are four main money denominations in Iceland and they are 10.000 ISK bill (ten thousand krónur), 5.000 ISK bill (five thousand krónur), 1.000 ISK bill (one thousand krónur) and 500 ISK bill (500 hundred krónur). In coins, there are 100 ISK coins, a 50 ISK coin, 10 ISK coin, a 5 ISK coin, and a 1 ISK coin. Frommer’s lists precise costs in the local currency. However, rates waver, so before embarking on your travel, confer with a currency exchange website.
Accepted Currencies In Iceland
In Iceland, you can make use a credit card almost in all places. Iceland operates nearly a cashless society which means that credit and debit cards are predominantly used for transactions. Though there are a few who still make use of cash in their transactions as it assists them in checking their spending. As a fact, credit cards are the preferential mode of payment in Iceland. However, various places like tourist attractions, souvenir stores, a few bars and restaurants might accept US dollars and Euros.
ATMs are the most reasonable and authentic mode of getting cash at equitable exchange rates. On arrival at Keflavík International Airport, ATMs and the currency exchange desk are easy to find; which are both managed by Arion Banki, and is reputed for reasonable exchange rates; it also interesting to note that ATMs are found in most villages in Iceland, though not all have 24 hours access.
You should also know that credit cards are secure, suitable, and commonly provide good exchange rates, though numerous banks evaluate a 1% to 3% ‘foreign transaction fee’ on all rates you incurred overseas. Note that you will need a PIN to make cash withdrawals on your credit card. The need for a PIN for most credit card transactions might not arise, but in situations like at an automated fuel pump, there will be a need for a PIN. Icelanders are quite comfortable with the use of credit and debit cards. All stores and tourist centers accept credit cards.
First, please be advised that you will need a credit card with a 4-digit pin for a lot of things. The Icelandic credit card makes use of a 4-digit pin hence, just in case you will be making use of any automatic services, you will need a 4-digit pin. Note that all payment machines in restaurants and stores will also request a pin however, if your card has a chip, payment can be made for any transaction below 5000 ISK. Visa and MasterCard are very much accepted over others; while Diner’s Club and American Express do not enjoy the same level of acceptance.
EDC Electron and Maestro debit cards are sometimes accepted at retail shops. It is also pertinent to understand that American Express credit cards are in most cases not accepted. Although most travel eateries and businesses accept American Express, however, there are still some businesses that do not accept it; the reason being the high transaction charges for the business.
Payments for transactions from your phone is gradually becoming more regular in Iceland. Now, more of the numerous retailers are accepting mobile payments but if your transaction is being done in a relatively small retail shop, it is most likely that a credit card will be demanded; it is the same for gas stations and other automatic payment systems. You should also be knowledgeable about Value Added Tax (VAT) and the items that you can buy that fall into this category.
It is money that can be returned on items that you buy in Iceland and will be taken out of the country; VAT in Iceland is presently 25.5% or 7% on distinctive goods. Gift items, souvenirs, and clothes whose overall cost is up to ISK 6,000 or more fall into this category; however, this does not apply to food and drinks while in Iceland. To redeem your money, ensure to request for your tax-free receipt at the point of transaction. All your tax-free receipts should be submitted to the customs office at the Keflavik International Airport. A refund is usually given in ISK cash, which you can then convert to your currency. Iceland is amongst the few countries in the world that have duty free at the arrivals and departures at Keflavík International Airport.
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