Icelandic payment providers compared
What each option really costs, what it supports, and how to choose without getting locked into a contract that does not suit you.
In short
- The cost is rarely one number. It is fixed fees plus a percentage plus a per transaction charge.
- Icelandic buyers expect cards and Apple Pay. Aur and bank transfer are a bonus, not a requirement.
- Foreign providers are simpler to set up, domestic ones are often better on support and payouts.
- Check the payout time. Money that arrives in fourteen days is not the same as money that arrives tomorrow.
- Always ask about the exit clause and what happens with refunds and chargebacks.
The payment provider is the part of an online store people think about least and complain about most afterwards. Here is what actually matters.
The cost is three numbers, not one
- A fixed monthly fee, which can be zero or a few thousand krónur.
- A percentage of every transaction, usually somewhere between one and three percent depending on the card and where it comes from.
- A fixed charge per transaction, which bites hardest if your average basket is small.
A store with a 3,000 króna average basket and a store with a 30,000 króna average basket should choose differently. Always run the numbers on your real basket size and transaction count, not on the price list alone.
What Icelandic buyers expect
- Payment cards, debit and credit, without having to create an account.
- Apple Pay and Google Pay on a phone. This is no longer a luxury, it is the expectation.
- Prices in krónur with no surprise additions at the final step.
- A clear confirmation immediately and a receipt by email.
Aur, bank transfer and other domestic methods are fine additions, but few buyers walk away because they are missing. A card that does not work, on the other hand, is a lost customer.
Domestic or foreign
| Domestic providers | Foreign providers | |
|---|---|---|
| Setup | More paperwork | Usually same day |
| Support | In Icelandic, a phone number | In English, through a system |
| Settlement | Depends on the contract | Often a fixed number of days |
| Flexibility | Less | More, plenty of add on tools |
| Accounting | Easier to connect domestically | Often needs an extra step |
The questions you should ask
- When does the money reach my account after a sale?
- What does a refund cost, and do I get the transaction fee back?
- What happens with a chargeback, and who carries the cost?
- Is there a lock in period, and what does it cost to leave?
- Does the provider support the ecommerce platform my store runs on?
The most expensive mistake
Picking the cheapest percentage and then discovering that settlement takes two weeks. For a small store with tight cash flow, the payout time often matters more than half a percent in commission.
What we do
We set up the provider that fits the business and connect it to the accounting from the start, so you are not copying transactions by hand every month. If you already have something that works, we do not switch just for the sake of switching.
Frequently asked questions
Can I use more than one provider?
Yes, and plenty of people do, for example cards through one route and bank transfer through another. It complicates the accounting a little but it can pay off.
Do I need to store card details?
No, and you should not. The payment provider handles that and carries the liability. A store that keeps card numbers itself is taking on a lot of risk.
What about selling abroad?
Then currency and card types matter more, and foreign providers often have the edge. Check the VAT rules before you start as well.
Related service
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ReadAbout the author
Kristján Gilbert is co-founder of galdrasmiðjan. He builds websites and online stores for Icelandic companies and writes here about what actually works: speed, search, visibility in AI answers and automation.
Questions about this article go to hallo@galdrasmidjan.is.
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