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Are credit cards widely accepted and safe to use locally? Are ATMs common and do you recommend using them? Are they safe to use?

Credit cards are used everywhere for everything. - Nov 27, 2017
Credit cards for just about everything. You can use cash if you must but you'll get funny looks. - Jun 23, 2015
You can buy a pack of gum here with an ATM card - people use them for everything. - Feb 13, 2013
Icelanders use credit cards for everything. ATMs are widely available in Reykjavik and work just like in the US. - Jul 29, 2011