Paying cash for hotels

The lower limits are usually set by your bank. Ask your bank ahead of time what the limit is, and ask if it can be increased. Then take out the max as often as you need to have enough. If you figure out how much you will be able to get and it isn't enough, you might need to get some Euros before you leave for the trip. I haven't had a problem with being able to get enough. I can usually get at 300-400 Euro at a time, though I've been with people who had a lower limit and could only get around 150 at once.

Thanks, Leigh. I will check with my bank. Good advice!

Susan:
The lodgings we stayed at understood it would take a couple of days to accuimulate the cash needed. We'd pay a couple hundred euros on check in then accumulate enough cash to handle the balance as fast as we could. Sometimes we did maximum withdrawals every day for a few days and stashed it in our room safe to pay the bill. Ask: They'll work with you.

Susan, Check with your bank to verify your limit is high enough to cover the amount you want, if not, ask them to raise the limit. On joint accounts sometimes the limit is per card not account so two cards could each take out the limit on the same account. Open another account to increase the amount you can withdraw. It is also a good idea for a backup. Look for the best deal for this new travel account. See http://flyerguide.com/wiki/index.php/Credit/Debit/ATM_Cards_and_Foreign_Exchange You want a low(or Zero) foreign transaction fee and a low or zero charge for out of network fees. Italian banks will not charge you for using their bancomats. On the back of your ATM or debit card you need a Visa - Plus or MasterCard - Cirrus symbol.
The Italian bank ATM may have a transaction limit (the amount you can pull out at one time), usually between 250 and 500 euro, but you can perform multiple transactions until you reach your bank's daily limit.

Some places will give you a discount when you check out, if you offer cash. You'll have time to accumulate it over the length of your stay. If your hotel wants cash in advance, you should be able to accumulate the cash before you get there, except for your first hotel. And as mentioned, they will probably be understanding. Also, find out what your fees will be. Think about opening a Capital One money market account. They don't charge fees at all, so even if you have to take multiple withdrawals to reach your daily limit, you won't be shelling out fees that neutralize your hotel discounts. You can pay for entrance fees and many meals using a credit card. Again, Capital One's card doesn't charge any foreign transaction fees.

Usually, the "cash discount", when legal (e.g., mean to offset credit card fees, or to provide resources at hand) will not compensate the accumulated fees you pay to withdraw money. If a discount is too good (like more than 5-7%), it is likely a scam for tax evasion on the part of the hotelier. I refuse myself to engage in such schemes, it's is immoral and contribute to corruption in a foreign country. But I guess most people are lured by 10% or more cash discounts without realizing they are participating in a tax fraud. The caveat: ALWAYS ask for a formal receipt ("scontrino" or "ricevuta fiscale") from the hotelier. That way, he will be obliged to pay taxes even if he took hard-to-track cash. I always do that to keep hoteliers in check with their fiscal obligations.

Susan,
You are getting great responses. We went to our local bank and asked them to raise our limit per day. When we first got our ATM cards it was $300. They told us that they had since raised it for everyone to $500. We thought that was sufficient, and it was. We could get 300 euro at the time. We would usually get 2 50 euro notes or one 100 and the rest in 20's. I would stash the large bills in my money belt or hotel safe and pay hotels with them. I usually max out my withdrawls the first four days to have a cusion and then cut back throughout the trip. Andre has it right above. In Florence we had a friendly hotel owner who I talked to about Italian's and tax evasion. I never got a receipt for the amount that I paid the entire time there. It became a joke. I told her the Math teachers should be fired which she got a kick out of. The day we left I handed her 70 euro, the price agreed on with a cash discount via e-mail, and she handed me a reciept with 50 on it and a wink. I almost asked for 20 back and then thought it is on her and not me. I saved 20 euro with the cash discount and now i know why. It is up to you.

Andre - I had booked all the hotels that gave me a cash discount over the internet and all gave me written receipts. That seemed to be enough of a trail for me. The discounts were all between 5% and 10%. I assumed it was because of the credit card fees they incur plus the wait until they are paid.

Susan - We just got back from Italy and had two ATM cards from two different accounts (Captial One and our Credit Union). We easily accumulated the money for a cash discount over our stays but we were staying at midrange 3 star places and nothing was too expensive. We always received the proper forms and receipts from the hotel proprietors without having to ask. Sometimes the savings doesn't make sense. We have no foreign transaction fees on our ATM cards and credit card. If you have to pay a 2-3% fee and maybe even a flat amount for a cash withdrawal, it might outweigh the cash discount. But then again, you have to take into account any foreign transaction fees your credit card charges as well. Compare the overall cost of getting the money to what you would save.

I agree with Henry. My bank gives me totally "free" (no exchange rate discount, no ATM fees) ATM withdrawals, but their credit card charges 3% excg. So I'm getting a 3% discount for cash without even going through the hotel. BUT, in the last 7 years I have stayed in 22 places; only one accepts American credit cards, and they have all been small and very economical. I have found in my searches that the places that take credit cards are more expensive, so in essence, there is a "penalty" for staying at places that accept credit cards. You could look at that as a discount for cash.

Andre, "Usually, the "cash discount", when legal (e.g., mean to offset credit card fees, or to provide resources at hand) will not compensate the accumulated fees you pay to withdraw money" I don't believe this is true for most Americans.
The highest charges on ATM/debit cards I have seen are a 3% foreign transaction fee and a $5 out of network fee, this would result in a 4% fee to get $500. Obviously the out of network fee would become more prominent if you withdrew $100 at a time. There are many ATM/debit cards that have a better fee structure, total fees under 2%, so you would be ahead on a 5 to 7% discount for cash.

They'll almost certainly want to swipe a credit card at check-in regardless of final payment method. Also, may want your passport number in some places.