What Currency Does Iceland Use When Renting a Car?

Planning a road trip across Iceland? Payment logistics catch travelers off guard at the rental desk. Here's what you need to know about currency, payment methods, and deposits before pickup.

The Currency Situation

Iceland uses the Icelandic króna (ISK)—not euros, not dollars. Understanding about currency of Iceland matters because all rental transactions happen in króna.

What continent is Iceland on? Its North Atlantic location means payment infrastructure concentrates in urban areas. What currency does Iceland use becomes less critical when you realize Iceland operates as an almost entirely cashless society—credit cards function everywhere.

Payment Methods at Firefly

Firefly accepts these credit cards only:

• VISA
• Mastercard
• American Express

Not accepted: cash, prepaid cards, or debit cards. The credit card must be in the main driver's name. Firefly places a temporary authorization hold on your card at pickup—this secures potential damage or fuel costs and releases when you return the vehicle without issues.

Deposits and Insurance Coverage

The amount varies by vehicle type—compact cars require less than larger vehicles like the Duster. That's your non-waivable excess, what you'd pay out of pocket if something goes wrong.

MAX Coverage drops that excess to zero for a daily fee. Exploring the Golden Circle Iceland Map or driving to Black Sand Beach Iceland means gravel roads and real damage risks. MAX Coverage eliminates your financial liability from damage claims.

Your bank releases deposit holds after you return the car—typically within a couple weeks, though some banks take longer. Check your bank's policies before you travel.

Smart Payment Procedures

Bring two credit cards and keep them in different places. If your primary card has issues at the counter, that backup saves you. Call your bank before leaving to confirm both cards work internationally—transaction blocks happen more often than you'd think.

Your available credit needs to cover the deposit plus trip expenses. Download Apple Pay, Google Pay, and the Parka app before you land. These work at gas stations and parking facilities throughout Iceland, including at the Golden Circle Iceland Map and Black Sand Beach Iceland where digital parking systems are standard.

What You Actually Need

A credit card in the main driver's name with enough available credit to cover your deposit plus expenses. Make sure your bank hasn't put any international transaction blocks on it—call them before your trip to double-check.

Tipping isn't expected at rental counters. Service charges are already built into prices throughout Iceland, so you don't need to worry about that.

Ready to Drive

Get the payment stuff sorted before you land. Bring your credit card, figure out which insurance coverage makes sense for your plans, and download the payment apps you'll need. Handle all that beforehand, and you can actually focus on enjoying Iceland instead of dealing with payment headaches at the rental counter.