I am abroad, should I choose to pay in ISK or EUR and why?

In general, it is more advantageous to choose to pay in EUR (or the currency used in the country), as Indó takes care of converting it to ISK at the best rate offered by Indó. If you choose to pay in ISK, the account will be debited with the amount in ISK offered by the sellers acquirer or transaction keeper, which is always less favorable than what Indó offers.

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