Cash or card in Italy (around Trento)

Master Card and Visa are normally equally acceptable. It's true that many places do not take American Express.

I haven't been to the area around Trento, but it's possible anywhere to run into small merchants, family-owned hotels, stallholders at markets, etc., that don't take credit cards.

Do you not have an ATM card you can use to withdraw money from your bank account? That's what the vast majority of tourists do. It's very difficult to predict how much cash you'll need over the entire course of a vacation, and it's risky to carry a large amount of cash around.

I realize that the banking system in Canada is different from what we have south of the border. From posts on this forum, I gather you may have less-expensive options for converting currency at home but not such good options for no-fee ATM and credit cards.

Hi there,
Thank you so much for the feedback. Yes exactly it will cost us alot more in ATM fees and conversion rate if we withdrew the money out of country. So normally I buy some euros at home and bring it along. And try to use credit card as much as I can.
Do you guys all normally just pull cash as you need from an ATM there? Is that safe? I have never done that. Maybe I will look into it. I figured credit card is the best option but maybe I am wrong. But I know for sure the ATM fees and conversion is where they get us.

Restaurants and shops will take your MC in general, as will lodging unless they tell,you otherwise. (Some small B&Bs and some apartments require cash.) In Italy, however, it is still preferred that you pay for small purchases (a cappuccino, a panino) with cash.

It is perfectly safe to take money from an ATM using the same precautions you would at home. You will get a better exchange rate at the ATM than you likely would at home, but never ever accept charges or cash withdrawals with DynamicCurrency Conversion or DCC. If the machine or clerk ask if you want to pay in $CN or €, choose € for the best exchange rate.

But I know for sure the ATM fees and conversion is where they get us.

Not exactly. Your bank will charge an ATM fee for each transaction outside it's own system. But the exchange rate should be very close to what the credit card would give, if both are issued from the same bank. Our bank charges a $5 transaction fee. If I withdraw €500, that's a very small price to pay. And that's why we prefer to make a few large ATM withdrawals instead of a bunch of small ones.

There's nothing wrong with using a credit card if the merchant accepts it and you're OK with any fees your card may assess for use overseas. I have multiple no-fee credit cards, but I realize not everyone has such customer-friendly cards.

I have two ATM cards. To me its counter intuitive, but the large bank ATM card has a transaction fee and a 3% charge whereas my local credit union ATM card does not charge a transaction fee or any charge as a % of the withdrawal. Now the bank in Italy might, so we will do some limited "shopping" around. When I get back from our trip, I am going to explore other bank options for a secondary bank, because we end up using the large bank very rarely because the terms are so awful. I use a credit card as much as possible in Europe. I don't like carrying a lot of cash. In terms of credit cards, I would call each card and give them the dates of your vacation. I would also ask them if you will incur a foreign transaction fee, and also if there is any possibility of getting a PIN. I avoid using my Mastercard in Europe, because mine charges a hefty fee. Neither my VISA or my AMEX has a foreign transaction fee attached to it. I like the points on my AMEX, too, but I love the VISA card I have. It has good travel benefits including insurance and any issues I've had with a transaction has been swiftly handled in a friendly way. So for car rentals, hotels and anything where I feel I might need the extra security, I use my VISA. Occasionally I've run into shops or other places that do not accept AMEX.

Oh, and two of the places we are staying in Italy (more northern) have specified they want their payment in cash so I'm anticipating that perhaps more of the restaurants will be cash only in comparison to other places I've traveled in Europe.

I carry two credit cards and two ATM cards as backups. I charge as much as possible on one of the credit cards that gives me 2% back on future travel. I load up a credit union ATM card and use it only when traveling as it's a no cost card. My Wells Fargo ATM comes with $5.00 and 5% charges per transaction which is excessive, so I don't use it unless necessary.
When in Europe, I actually withdraw relatively little money from my ATM--as credit cards are so universally accepted. And when I do use ATM's, I always try to use machines at banks. Travelex and other non-bank ATM's come with extra charges.
I have run into a couple of situations in Italy where my credit card wouldn't work, but the merchant manually keyed in the numbers and got a signature.

My experience in the Dolomites is that "mostly" you can use credit cards, but many smaller places will only do cash, or make it clear that they prefer cash. Credit cards, of course, cost the shops money. But in the last five years acceptance of credit cards has expanded dramatically across Europe, even in Germany, which used to be even more credit card averse that elsewhere. I have a no foreign transaction fee credit card and get cash from a major bank ATM with it when required, which has given a very good exchange rate. Given the overall costs of our trips, I have decided to be less worried about these fees, although I tend to take fewer, larger cash withdrawals to limit them.

Not a response to the OP but an observation after a week in Switzerland (currently in the Jungfrau Region): young people, especially the Japanese visiting here, are using their credit cards for everything. It’s smart because it eliminates the need to deal in the local currency, especially if you have a no fee CC. However, many small shops here have signs up stating “Cash only” or “Ice cream CASH ONLY” as I saw in Mürren yesterday. The CC users are also often flummoxed by which currency to approve on the CC machine: CHF or Yen (or $ in our case). A reminder to always choose to pay in the country’s currency as your CC company will give you a better exchange rate. The Dynamic Currency Conversion is a cash cow for the retailer or CC processor.

Thank you so much everyone for the helpful feedback. So I'm gathering that I should keep some cash of course but I should be good to use my credit card at most places except for small transactions they prefer I pay with cash.
I will call my credit card companies to find out about the foreign transaction fees. Thank you for telling me about that. Look forward to going to Italy.