When preparing for your vacation in the Land of Fire and Ice, you might wonder how to rent a car in Iceland. Are the requirements different from other countries? Can you use your debit card, or is a credit card absolutely required for the rental? Let’s look at some examples of when you can use only your credit card, debit card, or even both.
Knowing in advance the available payment methods in the Viking island will help you have a more pleasant trip with no surprises.
When to use a debit card
Once you’ve decided which car category you should have and the dates for your trip, you’ll need to make a reservation. The standard procedure is to pay 15-17% of the total rental online and the rest when picking up the vehicle. This ensures that no one else can rent your car. You can pay this percentage with a debit or credit card and it will be refundable under certain conditions. Check with your car rental provider about the cancellation period without any charges, normally if you make the request 7 to 30 days before the start of your rental, no penalty will apply and the deposit will be fully refunded.
Some companies will ask you to pay the remaining balance in advance, but most will allow you to pay the outstanding amount when you arrive in Iceland. You can pay this amount with a debit or credit card, whichever is more convenient for you.
When to use a credit card
When you pick up your car, either at Keflavik airport or the Reykjavik office, you will need to show your passport or ID, driver’s license, confirm the rental contract details, and present a valid credit card as a guarantee in case of damage or accident. You cannot use a debit card for this operation. It does not have to be the same card used to make the reservation, nor does it have to belong to the driver.
The credit card will be valid as long as the cardholder is present at the time of pickup. Most companies do not block any amount on the card as a deposit, they only store the card details in case something happens during the rental.
This procedure is standard across all car rental companies here. Some time ago, a company accepted rentals with debit cards, but the fleet they offered was a bit outdated, and it seems they have stopped operating. If you don’t have a credit card and none of your companions do either, some companies make exceptions. In exchange, you’ll likely need to add the most comprehensive insurance coverage available. Otherwise, you’ll need to leave a deposit that would practically equal the best insurance package.
PIN for my credit card in Iceland
Before we move on to this point, we hope it’s clear when you can use a debit or credit card in Iceland when renting a car. In summary, you can use both to pay the deposit or total rental amount, and you need to leave the credit card details as a guarantee when picking up the car.
In Iceland, you don’t need to carry much cash or Icelandic kronas with you. Fortunately, most shops accept credit cards. Something you might not know is that if you're using a credit card at a gas station in Iceland, you will need to enter your PIN. Most people know the PIN for their debit cards because they use it almost every day. But since we often have to sign with credit cards, we have no idea what the PIN is or if we even have one. It’s very likely that your credit card doesn’t have a PIN yet. Call your bank a few weeks before your trip to Iceland to find out your PIN or, if necessary, request one. They’ll send it to you by mail, so make sure to do this in advance.
Keep in mind that if you opt for the full tank option for gasoline or diesel, an estimated value of what the largest tank could cost will be blocked, and then the difference will be refunded. With debit cards, this refund could take several days, so we always recommend refueling a specific amount rather than filling the whole tank.
Do I need a credit card to travel in Iceland?
While you don’t need a credit card to pay for your rental, you will need to present one when picking up the vehicle, just as a guarantee in case unexpected charges arise that are not covered by the rental insurance you choose. We hope you enjoy your road trip in Iceland and explore the island to the fullest.
