Cash versus Card in Italy

The Italians seem to prefer cash and sometimes will offer a small discount for it. For big items like hotels and entry tickets, I usually use my credit card. For everything else - cash. The Italian version of ATM is Bancomat. Make sure that is what you use - your bank will then give you the appropriate exchange rate plus any charges. The other cash machines make those decisions for you and you may not like the results - bad exchange rate and high transaction fees.

I vote credit card, as all atm's charge fees, and usually your own bank will charge an additional fee, in addition to the exchange rate. IF you chose the wrong atm in Italy, you will have HUGE fees and poor exchange rates, [as sometimes the regular bank atm's are hard to locate.] I believe that the Travelex atm's are the ones to be avoided, but they are usually the ones in the airports and tourist centers. Always indicate you want charged in the local currency, not USD.
Good luck and safe travels!

Our two cents…we use the Capital One 360 debit card for travel. It’s attached to our CO 360 checking account, which we replenish periodically, online, from our “home” bank checking account. Seamless, easy, and there are no fees whatsoever. We’ve used it in multiple countries and have never had an issue. That said, as others mentioned, be careful of the ATMs you choose.

nushinhuq

you said: ". . . I plan to take cash out either way once we arrive, but wasn't sure how much . . . "

What I do is take out the max on arrival (300€ or so) and see how long it lasts. I don't like to use a card for " . . . things like gelato, coffee, snacks . . . " home or abroad. You'll figure out if you can get by with less, or need more. Anything left, bring home for the next trip, your friends trip, or spend in the airport gift shop.

When we were in Italy a couple years ago, there were quite a few inns that wanted cash. We can't recall any restaurants that wanted cash. I used cash for espresso, gelato, postcards and not much else.

We were just in Poland and I got the feeling that, much like the U.S., many places now prefer CC due to COVID concerns.

We use CC as much as possible when we travel, but we always have some cash. We don't like to carry much, however. We usually withdraw about 100 Euro, split it between the two of us and leaving some in our room. We'll get more during the trip as needed. We use bank ATMs making sure that we are not charged fees, and given an appropriate exchange rate. We've never been anywhere that we could not easily find an ATM that does not charge fees. We have a credit ATM card in the VISA network. You just need to make sure that your card (check the back) is affiliated with the ATM.

We always make sure to come home with about 100 euro for the next trip.

I say use your credit card as much as possible. Carry about 50-75 Euros daily for incidentals. It doesn't matter if the merchant "prefers" cash. If they advertise they accept CC, then I would use them.

We just returned from Italy and were able to use credit cards at the hotel and all the restaurants. However it's much easier to have small bills and 1 euro coins to pay for gelato, at bakeries, and for tips at the restaurants for good service (leave a couple of euros in cash). The shops were fine with credit cards, but cash would be easier at the market stalls.

We traveled to Italy for a few weeks in 2019. We bought euros in advance through our local aaa office. We burned through that first traunch within a week or so buying lots of low price items such as bottled water, snacks, fruit, esspresso, slice of za, small museum admissions, etc. Also used it up on ferry rides and modest tipping. Had to find random Atms twice more during our stay, once to buy a leather purse in Florence because I didn't have my passport on me. But I did get the instant vat discount for using cash there. Once back home i learned I got hit with some pretty high transaction fees using out of network atms. I will try to use my cards more next visit, but I found it helpful to have a few euros in my pocket with more stashed away in my money belt. One wine bar in Belagio demanded cash in lieu of taking my card, lucky for him I had enough on hand.

Most of the information you need to avoid excess fees and costs with ATMs and credit cards can be found here on the RS site.
https://www.ricksteves.com/travel-tips/money

Have cash with you for daily incidentals for purchases under 10 euro or so.
Although many merchants may prefer cash so that they can cheat the taxman, however that is not your problem. I use the credit card as much as I can.

If they want cash, they must be ready to give me a 10% discount or more. I'm even willing to accept no receipt, but in that case I want a 20% discount. No receipt means the merchants get to save 22% in VAT plus lower income tax reported (and the marginal tax rate is 38% for incomes over 28,000 euro). I want to share their tax evasion proceeds.

Another two thumbs up for the Capital One 360 ATM card. I’ve never had a problem using it at ATM’s in Italy and other countries.

Thank you to everyone. This was very helpful.

This year we found credit cards were far more widely accepted than in the past. Neighborhood coffee bar and for gelato, certainly cash, but few care if you use a card. Pandemic really changed things. Just ate sure not to accept Dynamic Currency Conversion. It is not a good exchange rate.

I have never had a problem using my credit card in Italy. Just be sure you inform your card company about your travel dates and where you will be so the charges won't be denied. You will want some cash on hand but I generally use my credit card for about 2/3 of my purchases while there. Like you, I generally book as much as possible well in advance too. I'd suggest cash for gelato and snacks but your credit card should be fine for large meals and shopping. Also, make sure your credit card has no foreign transaction fees and keep the exchange rate in mind while there. The Euro fluctuates so you could very well spend $1300 when you swipe 1000 Euro. Also, I use a Visa or Mastercard throughout Europe and it's been easy. I don't think American Express and Discover are widely accepted. Good luck and happy travels!

In the past, have had attempts on purchases with DCC in Europe, but when I was just in Poland, there were no quick attempts to select dollars for my purchases and most automatically assumed I wanted zloty (Polish currency)

Just got back from Italy, pretty much use contactless card everywhere. Not much need for cash. I took out some Euro's to have when I got at the airport, but in 2 weeks I can't recall a single purchase that I could not have used my card for. We were in Rome, Florence, and many other cities and small towns. Looking back on my purchases, I have some that were less than 3 euro on my card. No issues or complaints.

I'll add my 2 cents worth - Both is the answer. Have a good Credit card with no foreign transaction fees. Then get a backup card to use just in case. Also, use your debit card - but as others have said, take notice as to which machine you are getting money from. I always try to get from bank. I will use my Credit card as often as I can for 2 reasons: 1. it's easy and don't have to think about things if I put all on the same card, and 2. I can assess how much I spent when I get home much easier, and ensure I pay the card off immediately. I still like to have cash on me at all times - but not too much.

Glenn

In years past we kept our major credit cards down to one or two. Now, we intentionally have 4. Many places in Europe use Master card even though we rarely use it in the U.S. So we have 2 mastercards, 1 VISA and 1 AMEX. The amex is Delta for those advantages, the VISA has the best travel advantages for us including car rental insurance and excellent customer service. We like having multiple cards in case an account is frozen or hacked, and often one card is preferred over the others.