Our mobiles have become our most useful possession. Payments using mobiles have become more common than payments with the physical card and the device is necessary to confirm online purchases.
Landsbankinn’s app on our mobiles gives us easy access to information about our cards, both card numbers and our PINs. The app also offers notification and security settings to enhance card safety, close lost cards and order new cards that are ready for use in your mobile almost immediately. Our mobiles have become part of the travel mantra I refer to as the “holy travel trinity”. Before I close the door behind me and my suitcases, I always check that I have my holy travel trinity: Passport - Visa card - mobile.
But have the actual, physical cards become obsolete then? No, at least not yet, and definitely not when travelling abroad!
Contactless payment is safer, also overseas
Contactless payment means that we don't insert the card in a POS terminal and enter our PIN, instead using Apple Pay, Google Pay, Garmin Pay or the contactless function of the card itself. Using this method to pay is convenient and heightens our safety. The risk of unscrupulous persons obtaining our PIN is very much minimised. Strong customer authentication is still carried out with reference to ourselves, i.e. biometrics such as fingerprint or face ID.
Card necessary to withdraw cash
Despite all these technological advances, the physical card is still required in most ATMs. There are also merchants all around the world and in some cases even large shopping chains who will not accept payment with mobile solutions. I would never travel to another country without my card and I always take both a debit and credit card.
There is no longer any great difference in the cost of using debit or credit cards to withdraw cash. Cash withdrawals overseas carry a fee according to the Bank’s tariff: a set percentage of the withdrawn amount yet no less than certain minimum. Landsbankinn’s Visa rate and minimum fee for cash withdrawals are the same for both debit and credit cards. It’s not until the amount exceeds around ISK 30,000 that debit cards become less expensive since the percentage fee for them is lower than for credit cards. I always use my debit card to withdraw cash in ATMs since it's either as favourable or better but the credit card for all other types of payments as they don’t carry transaction fees.
To check the rate for card transactions, we look up the Visa rate, available on the Bank’s website. No other transaction or additional cost is added to the Visa rate for Landsbankinn cards.
But do I need cash?
Opinions on whether or not to carry cash differ and it matters where you’re going. Personally, I prefer to carry some cash for safety, even if I end up bringing it all back home. In addition to classic examples, such as taxis and low amount payments, the events in Portugal and Spain at the end of April 2025 show how power outages can upset card transactions. In such cases, having cash is helpful.
Where should I get cash?
If you can, it’s a good rule of thumb to withdraw foreign currency before leaving for the airport, as the premium there may be higher. You can either visit a branch or one of Landsbankinn’s currency ATMs in various locations in Iceland – they are open 24/7.
If you visit an ATM in a foreign country, I strongly advise that you choose an ATM located inside or adjacent to a bank rather than stand-alone ATMs in grocery stores or at airports. If you do need to use such an ATM, check for any additional service or withdrawal fees.
Will your withdrawal limit cover the trip?
If your limit isn’t high enough, you can adjust it for credit cards in Landsbankinn’s app. Before we leave for our trip, it’s good to check the scope of our authorisation to adjust the limit in the app rather than visiting a branch or calling the Customer Service Centre.
Keep in mind that many hotels and especially car rentals require guests and customers to present a payment card as insurance and can reserve part of your limit for the duration of your trip.
PINs - some pointers
Since we are so used to making contactless payments, we are more likely to forget our PINs. It’s a good idea to refresh your memory and check how we can look PINs up, such as in the app or online banking. We still need to take care with our payment cards and PINs, not write them down and save with the cards. In general, we are liable for all transactions confirmed with a PIN. It’s awful to have a relaxing, carefree holiday ruined by maxed out cards and the liability for the entire amount.
If we’re asked to confirm repayment by entering our PIN, we should proceed with caution. It is a known but little used method for merchants to ask for a PIN when reimbursing amounts to payment cards. Be very sure that you are in fact being reimbursed and not charged a second time.
Even so, forgetting a PIN can happen to the best of us and if the wrong PIN is entered too often, the card is locked. If this happens when the card holder is abroad, most cards can be unlocked by visiting an ATM for a cash withdrawal. It’s good to withdraw at least ISK 10-15,000 in each withdrawal.
Payments in ISK abroad
People are often asked when paying abroad if they want to pay in their own currency rather than the local currency. As a general rule, it’s more favourable for the card holder to approve the payment in the foreign currency rather than in ISK. That being said, some people find it convenient to see the amount in ISK and to know that this is the amount they are paying. We nevertheless recommend that you scrutinise the amount well before approving payment.
Cards and security settings in the app
Under “Security, notifications and closure” in the app, you’ll find all main features relevant to your payment cards. If a card is lost, you can close it and create a new one instead. The new card is ready for use in your mobile almost immediately.
Using the security settings for cards in the app is a great way to maximise security both at home and abroad. You can use the settings to prevent use of the physical card, cancel the contactless payment function, foreign use and withdrawals in ATMs. Customers control these settings themselves and can activate and deactivate the functions as suits them.
Notifications for cards is also a fantastic feature which I have used since it first became available. The way it works is that whenever my card is used without the physical card actually being present, i.e. for online payment, subscriptions, fuel tokens and such, I get a text message.
Insurance through your card
The insurance coverage provided through your credit card varies and before we start our travels, it’s good to check the information and terms and conditions of insurance company Vörður, Landsbankinn’s card insurance partner. Card holders who have car insurance included in their cards should acquaint themselves with the extent of the coverage, i.e. limitations that may apply to certain countries, etc.
Landsbankinn’s credit card holders are insured while travelling regardless of how the trip is paid for and do not have to pay for the trip or accommodation to activate traditional card insurance.
Another important aspect of the card insurance coverage is the payment protection and chargeback right. In the event that merchants and service providers are unable to supply paid for goods or services, this can be very important.
Around the clock service for card holders
Landsbankinn card holders enjoy access to around the clock service. If you require information or assistance, our Customer Service Centre answers your call to +354 410 4000 and messages in our web chat. We also respond to email sent to landsbankinn@landsbankinn.is.
If you have been the victim of fraud, we encourage you to contact us as soon as possible and, as the case may be, to notify the police. Landsbankinn’s employees man the phones from 9:00 to 23:00 all weekdays and helps in fraud cases. Outside of those hours, calls are automatically transferred to the emergency number for Visa cards, +354 525 2000.
Gyða originally wrote this article in May 2018 and updated it in May 2025.
