Which Italian banks typically are most reliable and have reasonable rates for ATM use? My limited research tells me Bancomat ATMs are desirable.
Start with the good info available here on the RS site:
https://www.ricksteves.com/travel-tips/money/cash-machine-atm-tips
All Italian banks have a Bancomat attached to it. Use them as you would use them at home. You can also use the language you prefer. When asking someone for an ATM, ask for a BANCOMAT, that is what Italians call those machines.
Don't look for stand alone machines that say ATM (usually at airports) which are not necessarily run by banks, but by money exchange services. Those have higher fees.
Once you see a bank, and a Bancomat, use it. The withdrawal fees are charged by your US bank, not the Italian bank, and can be as high as $5 per withdrawal, therefore minimize withdrawals, by pulling out the maximum amount of cash.
However nowadays all merchants in Italy accept credit cards, therefore use cash only for petty cash purchases, like a cup of coffee or a soda, etc.
Thanks to Liz and Roberto for the helpful feedback.
In Florence the standalone ATMs are fairly common and are often attached to souvenir shops; as Roberto says, these machines are run by money exchange services and may have higher commissions. Use machines attached to bank agencies.
Avoid those that are branded "Euronet"-they have very poor exchange rates and high fees.
This is another example of an ATM attached to shop, in this case a tobacconist shop (the ATM is run by Euronet).
Stay away from anything that says ATM. That is a trap for foreign tourists.
Trust only machines displaying the Bancomat logo attached to a bank (often inside in the atrium of the bank), like in the image here
Some terms are a bit confusing, and people use them interchangeably, but to be clear, I can add.
Saying that ATMs charge different "rates" is a bit misleading. An ATM may charge a use fee, or they may not. That fee is often a flat rate (3 euros to use the machine). Most machines in the US for example will charge a fee. This fee is disclosed up front, you can choose to use the machine or cancel. So if you need money, try a machine, if the fee is acceptable, great, if not, cancel and move on.
All of the "dreaded" Euronet machines charge a fee, but so do some of the Bancomats, especially in tourist areas.
A straight ATM transaction also has no "exchange rate" except for the ~1% barely noticeable by the card clearing company. You may however run into a machine that offers to do the transaction in your currency (Dollars) rather than the local currency (euros), guaranteeing an exchange rate. This is usually done at a terrible conversion rate, and is separate from a straight ATM transaction, and referred to as Direct Currency Conversion (DCC). This too is disclosed up front, and you can decline by indicating you want the transaction to occur in the local currency, or euros, at no additional cost to you. Some Bancomats, as well as Credit card transactions in stores, restaurants and hotels will also offer DCC; always decline, and indicate to do the transaction in euros.
With that, yeah, a Bancomat will offer better chances than a Euronet machine, but you do need to be vigilant. Best news is, you could probably get by using an ATM only once for a trip now, so a fee or two is less of an issue in the big picture. Contactless payment is available almost everywhere, but have some cash on you.
Italian Post Offices also have ATM’s that are reliable, as good a value as you’ll get at the best banks, and accessible. The ATM’s are on a wall outside the P.O. Look for a yellow sign with blue lettering that says Postamat.
Many bank-operated ATMs (bancomats) in Italy charge usage fees these days. As of March, Deutsche Bank ATMs didn't have fees. Unfortunately, the trend is for more and more fees, so I make no promises about what you'll find if you use a Deutsche Bank bancomat tomorrow.
Watch for the offer to dispense money and charge you in US $. This is called "dynamic currency exchange". Avoid that. Instead, ensure that the money is charged in euros. Your bank or card will do the conversion. The rate will be the best.
Of course, there are always fees. The fees are sometimes up-front, as in a 5E fee for the transaction. The fee may be concealed in the exchange rate that your card provider is using.
We were able to find bankomat machines attached to banks in Milan, Florence, and Turin.
Be sure to use the machines inside the banks, or in a glassed in foyer at said bank, and when the bank is open .
Less chance of anyone approaching and trying to “help” you.
Don’t use ones out on the street.
Some machines in smaller towns may be empty of cash by Sunday nights, so plan ahead.
My last two trips to Italy in September and this April, I used my credit cards more than cash.
You do need coins for pay toilets, and perhaps cash in some street markets and small cafes.
I hardly use cash these days. Just remember DO NOT convert to your home currency - it's a scam! Always pay in the local currency.