Simon says: swipe the card to minimise the cost

 
7 April 2014

We are stopping off in Reykjavik on our way back from New York. I’m confused about currency for Iceland. What’s the best plan? — Margaret Breen, Southfields

Iceland is an excellent staging post between the UK and the US. Transatlantic fares on Icelandair can be much lower than on non-stop flights.

From New York it turns a long-haul flight into a pair of short hops, with a pause that can be as little as one hour or run to several days, offering a short break amid some thrilling landscapes with a fascinating culture.

Since the financial crash, Iceland is not quite so expensive, but it remains challenging. To minimise the cost, maximise the number of Icelandic kronur (international symbol: ISK) you get for each pound.

The best way to do this is to use plastic — but carefully. Don’t use your debit card, unless you want to pay up to £2 in fees to your bank for a £20 meal, comprising a flat fee and a percentage charge. Credit cards are slightly better, but they still typically charge 2.5-3 per cent.

Assuming you have a reasonable credit history, acquire one that has no foreign fees, such as the Halifax Clarity card; you can apply here: bit.ly/HxClarity. This will also stand you in good stead when shopping, eating and staying in New York.

You can use plastic for the vast majority of transactions in Iceland, from the airport bus onwards. For a modest amount of local currency, you could change about £20 at the Post Office here; you’ll get a dismal rate, around ISK170 to £1, but you won’t pay commission.

Or find the best rate you can for sterling notes in downtown Reykjavik.

Email your queries to s@hols.tv

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