What is the cheapest way to pay in Iceland?


What is the cheapest way to pay in Iceland? Card payments are preferred in most places in Iceland. Of course, it's a good idea to take out some cash just in case you have issues with your card. It's normally cheapest to withdraw straight from an ATM or exchange cash at a local bank, rather than at the airport.


Do I tip in Iceland?

Tipping isn't mandatory or customary in Iceland, but it is always appreciated. The standard rate of tax on Icelandic products is 24%, with some products and services, including books, food and accommodation, taxed at a reduced rate of 11%.


Is it better to use cash or card in Iceland?

Most locals only use card payments instead of cash, and you likely won't run into any small businesses in any of the small Icelandic towns that only take cash, no matter how small your purchase is. Again, for the most convenience, opt to bring your credit and debit cards with you to Iceland and pay that way.


Will my cell phone work in Iceland?

If you are travelling to Iceland from the United States or anywhere else in the world you will probably need to buy an Icelandic Sim Card. You will also need to make sure that you have an unlocked phone to put it in. Have a chat to your home network provider about international plans first though.


Is Iceland mostly cashless?

Iceland is an almost cashless society, with nearly every purchase made by credit and debit cards. You won't need much cash at all for your trip. However, there are some important things that you need to know about paying in Iceland before you arrive.