You can save a lot of money on your next money transfer to Iceland if you’re willing to hunt around for a better deal.
Known for its breathtaking volcanic landscape and stunning natural beauty, Iceland is a fascinating country for visitors. The island nation boasts everything from spectacular glaciers to hot springs, making it an important inclusion on the must-visit list of many Australian travellers.
If you want to send money from Australia to Iceland – maybe you want to transfer cash to a friend or loved one visiting the country – there are plenty of transfer providers that can help. All you have to do is compare their services to see which one offers the best deal.
Compare Money Transfer Services
Banks versus money transfer companies
While you could approach your bank to handle your money transfer to Iceland, in most cases you’re better off looking elsewhere. Banks offer some pretty disappointing exchange rates to their customers, which means that a far smaller amount than you originally pay actually ends up making it to your recipient. Banks also charge high transfer fees, leaving you even further out of pocket.
Happily, there’s another solution to your transfer problem. Specialist money providers, such as OFX and World First, are experts in money transfers and trade large volumes of global currency. This means they can afford to offer much better exchange rates than any bank, plus they also charge lower fees. Check out the services these companies offer before deciding which company should handle your next international transfer.
Case Study: Isaac Sends Money to Iceland
Isaac wants to send money to Iceland to help out his sister Katie. Katie is on a two-week holiday in Iceland but left her wallet behind at a bar one night, leaving her desperately short of cash. Isaac agrees to transfer her $1,000 but, since his bank doesn’t transfer exotice currencies, he decides to compare two money transfer companies in an effort to find a cheaper option.
As you can see in the table below, using the second transfer company allows Isaac to send an extra 460 ISK and also save AUD $6 in transfer fees.
|Money transfer company 1||Money transfer company 2|
|Exchange rate||1 AUD = 89.90 ISK||1 AUD = 90.36 ISK|
|Transfer method||Online bank account transfer||Online bank account transfer|
|Processing time||1-3 days||1-3 days|
|Amount received (in ISK)||89,900 ISK||90,360 ISK|
How do I compare transfer companies when transferring and receiving money via Iceland?
- Exchange rates. The higher the exchange rate, the more money your beneficiary will receive. Also, make sure that companies with high exchange rates don’t also charge high fees.
- Transfer fees. You will usually need to pay a fee each time you need to send a transfer, so compare transaction fees between companies to see which one offers value for money.
- Transfer methods. Some companies offer online or in-branch transfers only, while others may also offer over the phone and mobile app transfers.
- Transfer options. Check to see whether the company offers limit orders and forward contracts to help you get a better exchange rate, as well as the ability to set up a regular payment schedule.
- Minimum and maximum limits. If the company has minimum or maximum transaction limits, will you still be able to send the transfers you want?
- Processing times. Some companies offer fast transfers within 10 minutes while others may take several business days to deliver the funds to your beneficiary.
- Pickup options. How will the money be delivered to your beneficiary: bank account deposit, cash pickup or another option?
- Customer service. Check a company’s customer assistance options and how you can access help.
How do I send money to Iceland from Australia?
- Specialist transfer providers. Companies such as Currency Fair and OFX offer this affordable service.
- Cash pickup transfer companies. Western Union and MoneyGram have large international transfer networks.
- Bank transfers. Banks offer transfers to countries all around the world, but they often don’t offer affordable transactions.
- PayPal. PayPal offers an international money transfer service that allows you to send money to Iceland.
- International cheques. Have you considered posting an international guaranteed cheque to Iceland?
How do I receive money from Iceland in Australia?
- Specialist transfer providers. Start researching now to find out which companies offer transfers from Iceland to Australia.
- Cash pickup transfer companies. Find a cash pickup company with a transfer location close to you.
- Bank transfers. Compare the fees and exchange rates of bank transactions with those of other transfer options.
- PayPal. PayPal customers in Australia can receive international money transfers.
- International cheques. Check to see how much your bank will charge in fees when you cash a cheque from overseas.
Emergency cash transfers in Iceland
If you need to get funds to Iceland as soon as possible, companies like Western Union and MoneyGram offer the convenience of international cash transfers in as little as 10 minutes. However, make sure you’re aware of the full cost of your transaction before you part with your money. High transfer fees and lower exchange rates often apply to emergency cash transfers, so if you’re not careful you could end up paying more than you realise.Back to top
Cash pickup locations in Iceland/ Western Union / MoneyGram branches in Iceland
With locations in Iceland and all over the world, Western Union and MoneyGram operate expansive international transfer networks. The details of some popular cash pickup locations in Iceland are listed below – if picking up funds, make sure you have photo ID and the details of your transaction handy.
- LandsbankinnAlfabakka 10Reykjavik, 109+354-410-4000Open 12:09am to 4pm Monday to Friday
- LandsbankinnKletthals 1Reykjavik, 110+354-410-4000Open 12:09am to 4pm Monday to Friday
- LandsbankinnHamraborg 8Kopavog, 200+354-410-4000Open 12:09am to 4pm Monday to Friday
Alfabakka 10Reykjavik, 109+354-410-4000Open 12:09am to 4pm Monday to Friday
Hofdabakki 9Reykjavik, 1105801000Open 9am to 7pm Monday to Friday, 11am to 4pm Saturday, 1am to 4pm Sunday
Thonglabakka 4Reykjavik, 1095801200Open 9am to 7pm Monday to Friday, 11am to 4pm Saturday, 1am to 4pm Sunday
Dalvegi 18Kopavogur, 2005801000Open 9am to 7pm Monday to Friday, 11am to 4pm Saturday, 1am to 4pm Sunday
Litlatuni 3Gardabaer, 2105801200Open 9am to 7pm Monday to Friday, 11am to 4pm Saturday, 1am to 4pm Sunday
Tips for picking up cash in Iceland
According to the Department of Foreign Affairs and Trade, Australian visitors to Iceland should exercise normal safety precautions. When picking up cash, make sure to:
- Never go alone
- Avoid any high-crime areas or areas where you don’t feel safe
- Keep your cash hidden
- Deposit the funds in your bank account rather than carrying them around
What are the steps to send money to Iceland?
- Provide your details. You will usually need to register for a free account before you can send a transfer. This is often done online and you will need to provide your name, contact information and proof of ID.
- Enter your transaction information. The provider will need to know where you’re sending a transfer, in what currency, and the amount you’re sending.
- Pay for your transfer. The final step is to review your transaction details and then submit your transfer request. Many companies also allow you to monitor transfer progress using an online tracking service.