Kortagreiðsla

Kortagreiðsla refers to the Icelandic term for card payment. It encompasses all transactions made using debit or credit cards, both in physical stores and online. This method of payment has become increasingly prevalent in Iceland, largely replacing cash transactions for many everyday purchases.

The process of kortagreiðsla involves the customer presenting their card at a point of sale terminal. The terminal then communicates with the bank or financial institution that issued the card to verify the funds or credit available. If approved, the transaction is completed, and the funds are transferred from the customer's account to the merchant's account. In recent years, contactless payment options have also become widespread, allowing for quicker and more convenient kortagreiðsla for smaller amounts.

Both Visa and Mastercard are widely accepted card networks in Iceland, and most Icelandic banks issue cards affiliated with these networks. The adoption of chip-and-PIN technology has significantly enhanced the security of kortagreiðsla, reducing instances of fraud. The infrastructure for card processing is well-established throughout the country, making it a reliable and convenient payment method for both residents and tourists. While cash is still accepted in some places, the trend towards digital payments means that kortagreiðsla is the dominant form of transaction.