Places to exchange currency in Iceland

I travelled across Iceland with barely any cash. At Keflavik Airport, I withdrew 5,000 ISK from a Landsbanki ATM and thought I’d need more. Turns out I didn’t. My card worked everywhere, from gas stations in the middle of nowhere to the tiny hot dog stand in Reykjavik. The only cash I spent was on a coin-operated shower at a campsite. The airport exchange desk looked tempting, but it was expensive. My advice: don’t exchange there, just rely on cards.

Airport exchange desks in Iceland have poor spreads. Arion Bank and Landsbanki ATMs at Keflavik are the smarter option. Withdraw a small amount for taxis or rural shops, though most taxis also accept cards. Cards dominate Iceland - supermarkets, campsites, tours, and even vending machines. Many travellers do their entire trip without touching cash. Safe plan: take 5-10k ISK at the airport ATM, then rely on your card. Airport counters are a last resort only if your card doesn’t work.

When I landed at Keflavik, I saw the exchange desk but skipped it. Arion Bank ATMs were right there, and my Visa card worked perfectly. In Reykjavik, every shop, café, and even the bus system took cards. Honestly, you barely need cash. I carried about 10,000 ISK just in case but paid with card 95% of the time. The only time I used cash was tipping a guide. No point wasting money at airport counters - use ATMs for a little buffer.

At Keflavik Airport you’ll find exchange counters, but rates are weak. The best option is to use ATMs from Arion Bank or Landsbanki right at arrivals. They dispense ISK at official rates. That said, Iceland is almost cashless - I spent two weeks there and only used coins for a public bathroom. Cards are accepted everywhere, even at hot dog stands. I usually withdraw just 5,000 ISK at the airport for emergencies, then rely on my card the entire trip.