Megan Brooks
The Icelandic króna is the official currency of Iceland, with the abbreviation ISK. It is a low-volume world currency that is strongly managed by its central bank. Due to its limited trade outside of Iceland, few banks outside of the country keep Icelandic króna in stock, and exchange rates can be high. While it is possible to exchange USD to ISK at banks in the USA, it can be expensive due to commission fees and high exchange rate margins. ATMs in Iceland generally accept foreign cards, but users should be aware of foreign transaction fees.
| Characteristics | Values |
|---|---|
| Can banks in the USA exchange USD to Icelandic Krona? | Yes, but it is generally expensive due to commission fees and high exchange rate margins. |
| Best way to get Icelandic Krona in the USA | Open an account with a multi-currency account like Wise or Revolut. |
| Best way to get Icelandic Krona in Iceland | Withdraw cash from an ATM using a prepaid travel card or a debit card that waives foreign transaction fees. |
| Are Icelandic Krona accepted in Iceland? | Yes, it is the official currency of Iceland. |
| Are other currencies accepted in Iceland? | Yes, but only at places frequented by tourists such as restaurants, bars, hotels, and tours. |
| Is it common to use cards in Iceland? | Yes, Iceland is extremely card-friendly and cards are accepted by nearly every shop, tour operator, restaurant, bar, taxi, and coffee shop. |
| Do US credit cards work in Iceland? | Yes, but US debit cards may not work. |
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What You'll Learn
- Banks in the USA may stock Icelandic Krona, but it is rare
- High fees are charged when exchanging USD to ISK at a US bank
- Using a prepaid travel card or a debit card that waives foreign transaction fees is recommended
- ATMs in Iceland accept foreign cards, but your bank may impose foreign transaction fees
- Credit cards are widely accepted in Iceland
Banks in the USA may stock Icelandic Krona, but it is rare
The Icelandic króna (ISK) is the official currency of Iceland. It is a low-volume world currency, strongly managed by its central bank. Its value compared to other currencies has historically been swift to change, for example, against the US dollar. The currency is quite strong, and one of the strongest in the world.
Iceland is not a member of the EU, and the Euro is not the official currency of the country. The Icelandic króna is only traded internally, so few banks outside of Iceland keep a stock of it. This means that exchange rates are usually quite high. Banks in the USA may stock Icelandic króna, but it is rare.
If you need to exchange currency for a trip to Iceland, it is recommended to open an account with a multi-currency account like Wise, or use a prepaid travel money card. You can also use a debit card that waives foreign transaction fees to withdraw cash from an ATM in Iceland.
It is important to note that while Iceland is a very card-friendly country, there are some instances where you may need to pay with cash or coins. For example, when paying for entrance to bathrooms and hot springs, or when refuelling at an unmanned or self-serve gas station. Additionally, some US debit cards may not work in Iceland, so it is recommended to carry a credit card as well. When exchanging currency, it is best to do so at the airport or in Reykjavík, as it may be harder to find banks in more rural areas. Currency exchange is available at all banks in Iceland.
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High fees are charged when exchanging USD to ISK at a US bank
The Icelandic króna is a low-volume currency that is strongly managed by its central bank. It is primarily traded internally, so few banks outside of Iceland keep a stock of it, and exchange rates are usually quite high. As a result, US banks may charge high fees and very high exchange rate margins when converting USD to ISK.
It is recommended that travellers heading to Iceland do not rely on exchanging currency once in the country, as there are no Bureau de Changes, and banks offering currency exchange services may be hard to find outside of the capital, Reykjavík.
To avoid high fees, travellers from the US could consider using a prepaid travel money card or a debit card that waives foreign transaction fees. These can be used to withdraw cash from an ATM in Iceland, or to pay directly like a local cardholder. Fintech apps such as Revolut offer superior rates when compared to banks and can be used directly from a smartphone.
Another option is to open a multi-currency account with a provider such as Wise, which offers low rates and the ability to lock in a desired exchange rate.
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Using a prepaid travel card or a debit card that waives foreign transaction fees is recommended
It is possible to exchange Icelandic krónur at banks in the USA. However, banks may charge high commission fees and exchange rate margins, making it an expensive option. To avoid these fees, it is recommended to use a prepaid travel card or a debit card that waives foreign transaction fees.
Prepaid travel cards, also known as travel money cards, are a convenient option as they allow you to hold the local currency of your destination (in this case, Icelandic krónur) and use it like a local card holder at ATMs and points of sale. You can top up your card balance in your home currency and convert it to the desired amount of Icelandic krónur. Fintech apps like Revolut offer superior rates compared to banks and bureau de change kiosks, and their virtual cards can be easily accessed on your smartphone. The Bluebird® American Express® Prepaid Card is another option that has lower foreign ATM fees and does not charge a fee on purchases processed outside of the U.S. However, it is important to note that prepaid cards are not credit cards and do not help build your credit history.
When it comes to debit cards, there are several options that waive foreign transaction fees. The Capital One 360 Checking Account offers a debit card with no international transaction fees and no monthly fees or minimum deposit requirements. The Schwab Bank Investor Checking account also provides a debit card with no foreign transaction fees and no monthly maintenance fees or account minimums. Additionally, the HSBC Premier checking account comes with an HSBC Premier Debit World Mastercard that has no foreign transaction fees, but it has a $50 monthly maintenance fee. For those seeking a premium account, the Citi Priority Package from Citibank offers travel benefits, including a debit card with no foreign exchange fees and no Citibank fees on ATM withdrawals overseas. However, this account also has a $30 monthly service fee.
It is worth noting that some credit cards, such as those from Capital One, also do not charge foreign transaction fees. However, they may not offer the same level of support as other cards. Additionally, secured credit cards or credit cards with a refundable security deposit may be an option for those who want an actual credit card for their trip.
By using a prepaid travel card or a debit card that waives foreign transaction fees, you can avoid the high fees associated with exchanging Icelandic krónur at banks or bureaux de change in the USA. These options provide convenience, competitive exchange rates, and the ability to access cash from ATMs abroad without incurring additional charges.
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ATMs in Iceland accept foreign cards, but your bank may impose foreign transaction fees
If you're planning a trip to Iceland, it's a good idea to be prepared when it comes to payment methods and foreign transaction fees. While ATMs in Iceland generally accept foreign cards, it's important to be aware of potential fees and charges. Here are some things to keep in mind:
ATMs in Iceland:
ATMs in Iceland are easily accessible, especially in urban areas and at Keflavik Airport. You can use your international card to withdraw cash from ATMs, but keep in mind that some ATMs may not be accessible 24/7. It is recommended to use ATMs at banks or in public places for added security.
Foreign Transaction Fees:
Using a foreign card in Iceland may incur foreign transaction fees. These fees can vary depending on your bank and card type. Some banks may charge international withdrawal fees, while others may have cards with no foreign transaction fees. It's a good idea to check with your bank about any applicable fees before your trip.
Card Usage in Iceland:
Iceland is a highly card-friendly country, with most businesses accepting card payments. Chip-and-PIN cards are widely used, so it's important to have a 4-digit PIN for your credit or debit card. Apple Pay and Google Pay are also widely accepted. While cards are commonly used, it's still a good idea to carry some Icelandic krona (ISK) cash, especially for smaller purchases or when visiting rural areas.
Currency Exchange:
The Icelandic krona is a low-volume currency, and few banks outside of Iceland keep it in stock, leading to high exchange rates. You can exchange currency at Keflavik International Airport or banks in Reykjavík, but be aware of potential commission fees and unfavourable exchange rates. Consider using a prepaid travel card or a debit card that waives foreign transaction fees to withdraw cash from ATMs in Iceland.
Alternative Options:
To avoid foreign transaction fees, you can consider applying for a credit or debit card with no foreign transaction fees. Additionally, using a multi-currency account like Wise or Revolut can help you lock in desired exchange rates and make withdrawals in multiple currencies.
In summary, while ATMs in Iceland generally accept foreign cards, be mindful of potential foreign transaction fees and charges. By planning ahead, comparing card options, and considering alternative payment methods, you can minimise fees and have a more enjoyable trip to Iceland.
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Credit cards are widely accepted in Iceland
However, it is important to note that some retailers may not accept certain types of credit cards, such as American Express (AMEX). Additionally, some businesses, such as unattended gas stations, may require a chip and a 4-digit PIN for credit card transactions. While credit cards are widely accepted, it is always a good idea to carry some local currency, the Icelandic króna (ISK), in cash, especially when visiting smaller establishments or rural areas.
If you are travelling from the USA to Iceland, you may find it challenging to obtain Icelandic króna from banks in the USA due to the low trading volume of this currency. Additionally, banks may charge high commission fees and unfavourable exchange rates. It is recommended to exchange currency upon arrival at Keflavík International Airport (KEF) or at banks in Reykjavík.
To avoid foreign transaction fees, consider using a prepaid travel card or a debit card that waives these fees. Alternatively, you can use a multi-currency account, such as Wise or Revolut, to take advantage of competitive exchange rates.
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Frequently asked questions
Yes, you can exchange for Icelandic krona at a bank in the USA. However, it is generally expensive because they may charge commission fees and high exchange rate margins.
You can use a prepaid travel money card or a debit card that waives foreign transaction fees to withdraw cash from an ATM in Iceland.
Prepaid travel money cards let you hold the local currency of your destination (ISK) so that ATMs and point-of-sale devices treat you like a local cardholder. Fintech apps like Revolut offer superior rates when compared to banks and bureau de change kiosks, and they are also more convenient as they can be downloaded and used directly from your smartphone.
Yes, currency exchange is available at all banks around the country. You can also exchange currency at Keflavík International Airport.
