Offline Card Payments

Offline card payments payments
Listen

In order to make domestic retail payments more flexible and reduce the probability that interruptions in internet connections will disrupt business activity, consumers will soon be able to make payment by credit or debit card in Iceland even if internet connections go down.

In cooperation with issuers of Icelandic payment cards and card acquirers, the Central Bank has paved the way for payments to be made even when internet connections are down, in an amount up to 50,000 krónur per payment card issued to a person of legal age in Iceland, provided that the following conditions are met:

The payment must be made using the physical (plastic) card itself, not with a card stored in a smartphone or other smart device.

The card must be inserted into the designated slot in the payment terminal and the PIN number must be entered to complete the payment.

The payment must be made for the purchase of necessities such as groceries, fuel, or medicine.

Issuers may decide to set a higher limit for specific cards and may allow payment for goods other than those listed above.

Cardholders must activate the plastic card themselves in order for it to work offline. This is done by paying for goods one time, by inserting the card into the payment terminal and completing the payment by entering the PIN number. This updates the chip in the card, which stores the authorisation for offline payments. This should be possible from 1 July 2026, although it could take some time for all service providers to implement the solution.

Cardholders are encouraged to contact their card issuer (i.e., commercial bank) and acquaint themselves with the authorisations associated with their payment card(s). They are also encouraged to memorise their PIN and keep their plastic card available. When the internet is down, it is not possible to look up PIN numbers in online bank accounts or smart device apps.

There is no need to activate cards issued on or after 1 July 2026, as they will automatically contain an authorisation for offline card payments.

The Central Bank will continue to work towards strengthening the resilience of payments in Iceland, including enabling contactless payments via smartphone and smartwatch in the event of an internet outage.

No. 8/2026

3 June 2026

Related articles
03. June 2026

Statement of the Financial Stability Committee 3 June 2026

fsn statement financial stability committee financial stability