You can use your card almost everywhere.
You don´t need to be worried about not having cash with you, you can use your credit card almost everywhere. The few places that don´t accept your card are the smallest vendors, the ones that don´t have a store. There is only one card (that I know about) that could give you problems and that is American Express. Other then that your good to go. You can walk into any shop and find that souvenirs or great lunch you spotted, and just pay with your card. One thing you should know, most shops in Iceland have a POS that will ask you for your PIN. So it would pay off to have it in a handy place in case you have to put it in.
There is one thing you need to keep in mind. Even though we don´t charge you extra for using a foreign card, your credit card company might charge you for the transaction a special fee.
