cash vs. credit card in Italy

We were in Rome, Matera and Naples in October and there didn't seem to be a certain lean either way - except when we were in some smaller shops - Euro's was happily accepted.

Every place we visited had tap credit card readers. My primary card was hacked somewhere in Italy or Greece. When we got home I replaced the card and the second one was immediately hacked. Don’t know how this can be avoided. Good luck.

https://search.ricksteves.com/?button=&date_range=2y&filter=Travel+Forum&query=Cash+in+Italy

The above Search should be helpful, and you are correct, the topic comes up here frequently.
We prefer tap pay via the Apple Wallet. No getting the credit card out, fewer chances of losing it. Many posters report increasing trends toward credit card pay, by whatever mode.

Have a great trip.

I have found in recent years that in Europe, we can pay for 90 to 95 % of our expenditures with our credit cards.

We take cash as backup. The disadvantage with cash is if you are pickpocketed and the cash is gone. If my cards are stolen, especially my AmEx card and be replaced with in hours.

I agree with Pat that Apple Pay or similar eliminates the risk of losing your cash or credit cards, and it also eliminates the risk of your credit card being hacked.
No worries about being pick-pocketed, either.
One credit card in your money belt is the backup plan should you lose your phone.

I'll second Kenko's remarks. We'll be in Florence next Tuesday, then Rome, Salerno & Sicily. And I just put my credit cards into my Apple Wallet, which pretty much eliminates hacking.

Everything I have read indicates that you need to have cash to pay a "tourist tax" at all of your hotels, etc. Is that still true?

“Everything I have read indicates that you need to have cash to pay a "tourist tax" at all of your hotels, etc. Is that still true?”
False. The tourist tax will be added to your hotel bill. In fact I haven’t used cash in Italy since 2018 except for tiny items like a morning espresso or a gelato but, to be quite honest, ALL businesses are required to accept credit cards. It’s the law. Those places that say they take cash only are trying to skirt the tax laws and eventually they’re caught. Don’t help them do it.

False. The tourist tax will be added to your hotel bill. In fact I haven’t used cash in Italy since 2018 except for tiny items like a morning espresso or a gelato but, to be quite honest, ALL businesses are required to accept credit cards. It’s the law. Those places that say they take cash only are trying to skirt the tax laws and eventually they’re caught. Don’t help them do it.

Thanks. I know that the monastery in Florence where we have reservations states the tax must be in cash. I believe some of the hotels in Cinque Terre I have been researching also say that on their booking pages. I'll have to be sure to check that wording as I continue to find our lodgings.

You can use either.

In 2023 there is a new law that imposes all merchants to accept card/digital payments regardless of transaction amount, therefore there cannot be shops or restaurants or hotels that tell you they accept cash only. That is illegal and they may incur fines if they do. Some prefer cash payments because that way they don’t pay the bank commission on credit card use, but bank commissions in Italy are lower, almost zero for debit/ATM cards, so they don’t care much to be paid by card, especially if it’s a debit cards, which Italians use heavily.

There are however certain categories of “dishonest merchants” who prefer cash because they try to evade taxes and sometimes tell you that their POS machine is momentarily “broken” (wink wink). Taxi drivers are famous for that, also because they are not required to give you a tax compliant receipt (scontrino fiscale). So before getting on a taxi, if you want to pay by card, confirm with the driver the POS machine is “not broken.

Another group that likes to circumvent the law and require cash payment are some vacation home owners. Their practice is illegal and is obviously done to circumvent tax laws, not so much bank commissions, but, since those transactions are not public in the open, like shops or restaurants, some do require you to pay cash. In that case they will let you know ahead of time. You don’t have to rent from them if you don’t want pay a lot of hard cash.

Keep some cash (50-100€) for emergencies (card not working or taxi with “broken” pos machine) but pay with card or phone otherwise.

KEEP YOUR PHONE SECURE AT ALL TIMES. Not in back pocket (use a secure holster) not on a sidewalk table, use it also with caution (some have it snatched by their hands by thieves). Phones are the no. 1 target by pickpockets.

We are currently in Italy. Majority of our stays are booking.com. Some of the hotels and apartments ask you to pay the city tax separately upon arrival as stay is prepaid, based on the cancellation date. We paid €8 cash for tax for an apartment (provided receipt) and credit card for €15 city tax at hotel in Milan). City tax is not much, maybe 2-4€ per person per night.

I will just say that, yes, a number of hotels and other lodgings, do prefer the tourist tax to be paid in cash. It is not dishonest, and if you want to make a scene at reception and loudly proclaim your insistence to use a card, go ahead.

I always carry some cash, and it is not inconvenient. Other places, for small purchases, like cash, if under 5 or 10 euro, I do so.

As for safety, your card cannot be "skimmed" by using tap to pay, the same reason your phone cannot be skimmed. As for pickpockets, your phone is attractive a target as your wallet, plus it is larger, and often in your hands.

These replies have me more confused. I was under the impression cash would be needed to Airbnb/tax upon check-in, bathrooms, and should we choose to tip - that should be cash or else it goes to the business rather than the server, guide, etc. Is that incorrect?

Is front pocket a safe place for phones? Mine will be in my crossbody bag, zipped, but thinking of my husband and teens.

Thanks!

KEEP YOUR PHONE SECURE AT ALL TIMES. Not in back pocket (use a secure
holster) not on a sidewalk table, use it also with caution (some have
it snatched by their hands by thieves). Phones are the no. 1 target by
pickpockets.

Roberto, how right you are. We will be in Florence next Tuesday, starting our journey of 16 days, and in prep for this trip--our first time back to Italy since 2017--I cannot believe how much is iPhone-based, and how much that's changed in the past 8 years. Google Maps, Google Translate, Apple Pay, Apple Wallet, Trenitalia app, Free Now app, What's App...and on & on. Incredible, and to be honest a little scary.

I've made hard copies of everything as a fail-safe, but I have an inside zippered pocket--with RFID blocking--on my travel vest that will hold the iPhone, and nothing else. I take it out, do what I need to do, then back in the pocket it goes. I can't be glued to that thing like I am in the States sometimes.

Watch for the diversion, especially on transit or in markets. An argument a few feet away, something spills...anything to distract. Someone could be just behind you waiting to snatch your phone while you're watching them.

Good luck everyone!

I have been on 7 RS tours since 2022 and have yet to use physical card for payment. Used my Apple Watch or iPhone except for 10 euro or less purchases.

I agree with Pat that Apple Pay or similar eliminates the risk of
losing your cash or credit cards, ..... No worries about being
pick-pocketed, either.

Phones are not the subject of pick pockets? My wallet stays in my pocket all the time, my phone is in constant use and in a more "accessible" pocket. I think a better trarget for theives.

I always sigh in long payment lines when the apple pay people are in front. Takes longer.

The point of asking the tourist tax to be paid in cash is that while an hotel can adjust its price to account for bank commissions on plastic payments, the tourist tax must be paid in full to the local municipality and so any commission would have to be met by the hotel, without the possibility of charging it back to the customer. You pay in cash, no bank commission.

As for plastic use, as an Italian citizen living an everyday life: most of the things are paid out of credit or debit cards, some cash is useful as you won't be paying tiny amounts like newspapers with plastic, and keep cash for taxis as a lot of drivers prefer cash even if they should not. But it takes me much more than one month to spend a 500 eur ATM withdrawal. Of course I do not have to met much tourist expenses like tickets and restaurant, but I have to met everyday expenses.