Travel Tips Holiday money

Using your Irish Wise card in Iceland: Charges and ATMs tips

Gabrielle Figueiredo

03.06.25

Read time 2 minutes

The Wise card lets you spend and make cash withdrawals in 150+ countries, and in 40+ currencies, giving huge flexibility for travellers.

If you’re heading off to enjoy a short break in Reykjavik, to take a dip in the Blue Lagoon, or to get out and about in the famous national parks and glaciers, the Wise card could be the perfect partner.

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Does Iceland accept debit cards? 🤔

First the most important question - does Iceland use cash or card more commonly?

If you’re planning your trip, it’s helpful to know that debit card acceptance is extremely common in Iceland, and card payments on major networks are usually the preferred method for merchants.

Having one or two travel optimised cards on networks like Visa and Mastercard should see you through your trip with no problems.

Can I use my Wise card in Iceland?

wise-card

The good news is that you can choose your Wise card as an alternative to using a bank card in Iceland, to spend and make cash withdrawals conveniently.

In your Wise Account (connected to your card) you can’t hold a balance in ISK - Icelandic krona, the currency in Iceland - but you can leave your Wise balance in euros or any of the other 40+ supported currencies, and Wise will convert automatically to the local currency for you when you pay.

You’ll get the mid-market exchange rate (the same you normally see on Google) and low, transparent fees.

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Wise Account for free 🚀

What are the charges for using a debit card in Iceland?

So - can I use my bank card in Iceland, or would I be better off using the Wise card?

Major banks usually issue cards on Visa and Mastercard networks which are likely to be accepted in Iceland. But that doesn’t necessarily mean that using your bank card will be the cheapest option.

Ultimately, the charges for using a debit card in Iceland depend on the specific card you hold.

Let’s compare the costs of a couple of major banks, against the costs of using Wise in Iceland as an example, looking at bank debit cards only. Fees for using a credit card may be higher.

Provider	Spend in Iceland	Withdraw at an ATM in Iceland
AIB (debit cards)¹	1.75% of euro value (Minimum €0.45, Maximum €11.00) No minimum applies on contactless payments	Conversion fee: 2.5% of euro value Commission: 1% of euro value (Minimum €2.00, Maximum €6.00)
Bank of Ireland Personal Current Account (debit card)²	2% of transaction value (Maximum €11.43)	3.5% of transaction value (Minimum €3.17, Maximum €11.43)
Wise card	Currency conversion from 0.61%	Currency conversion from 0.61% Up to 2 ATM withdrawals up to €200/month for free.³ Then €0.5 per withdrawal + 1.75% of the amount over the limit

*Details correct at time of writing - 8th May 2025.

Tips when paying and withdrawing in foreign currency 🏧

Finally, let’s take a few handy tips for paying and withdrawing in foreign currency:

Always pay in the local currency wherever you are - so ISK in Iceland. Merchants may ask if you’d rather pay in euros, but this will usually mean higher overall costs and, most likely, a bad exchange rate
Check your own bank’s fees for foreign transactions, including conversion fees, commission and ATM costs before you go, so there are no surprises
Make sure your contact details are up to date with your bank so they can contact you if they have any questions about transactions on your account - otherwise you may find payments flag as suspicious and your card is blocked
Choose a low cost international debit card like the Wise card to make spending and withdrawing in Iceland and beyond cheap, easy and hassle free.

Sources used:

AIB schedule of international fees
Bank of Ireland fee schedule
Wise will not charge you for these withdrawals, but some additional charges may occur from independent ATM networks. .

Sources last checked on date:

*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.

We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.