Cash vs credit cards in Italy (Puglia)

You’re better off going to a regular bank ATM once you’re in Italy and first using your debit card. If you can’t use your debit card then use a credit card to get cash.
Otherwise you’ll likely get an unfavorable conversion rate and also get nicked by service fees by exchanging dollars for euros.

When you are in Italy, use an ATM attached to a bank displaying the Bancomat logo.
There are also ATMs saying ATM, managed by Travelex or Euronet, especially at airports and souvenir shops, which may give you a less favorable rate.

I've been to Puglia twice in the past 2 years, and I used credit cards for practically everything. I use hard cash in Italy only for small purchases, like a coffee or the like (anything under 5 or 10 euro).

Cash may be required in some circumstances, i.e. to use a public restroom (sometimes you are required to insert money at a turnstile or hand some tip to the cleaning lady), to leave a tip (tips are not customary at restaurants or taxicabs, and in fact there is no gratuity line in a credit card slip where you can add it, but I may leave a tip to the hotel staff if they take my luggage to the room). At the end of your hotel stay you will be asked to pay for the Imposta di soggiorno (Tourist Overnight Stay Tax) in some municipalities. That tax is an amount per person per night which varies from municipality to municipality and by the numbers of stars. Some budget hotels ask you to pay in cash.

Also some taxi drivers, who are notorious tax dodgers in Italy, will ask you to pay the fare in cash stating that their POS card machine is temporarily not working. The real reason is that all small entrepreneurs (like taxi drivers, all of whom, by law, or owners of the license and the car) are entitled to participate in a special tax regime whereby they pay only a 15% income tax flat rate provided their annual revenue is less than 85,000€. By being paid in cash as often as they can, they don't report that cash revenue to stay under that ceiling and take advantage of the low tax rate..

Just be aware that the (high) credit card interest will start running IMMEDIATELY on the balance on your credit card. ATM generally much better

Just be aware that the (high) credit card interest will start running IMMEDIATELY on the balance on your credit card. ATM generally much better

Not sure what you are getting at. Using your credit card for purchases does not incur interest immediately, most every card I am aware of charges no interest for current billing cycle purchases until the payment due date. Don't pay off your balance by the due date, then yeah, you pay whatever interest.

I believe the interest running on your credit card immediately is because most bank credit cards classify getting cash at an ATM as a “cash advance” and start charging interest on the first day you use the credit card to withdraw cash at an ATM.

That’s how all my bank credit cards have worked when I’ve used them to get cash overseas. When I pay off the card 3 weeks or so after using it at the ATM I already have interest charges accumulated on the bill

The 30-day no-interest grace period doesn’t apply when it’s categorized as a cash advance.

This is why many use their bank debit card or a credit card linked to an investment account such as Fidelity or Vanguard.

Cash advance, yes, interest starts immediately, but only on the cash advance amount, not interest will start running IMMEDIATELY on the balance on your credit card.

I would not recommend a cash advance regularly to get cash, but it is a tool, just understand the cost. For what it is worth, I would take a cash advance over hauling US cash and exchanging there, the cash advance would be cheaper. Even getting cash in the US from your bank is not any, or much less, than a cash advance. Just like interest, I always hear that is incredibly high, but never how much that is. Well, on a $200 USD, if you paid that high interest for the full 30 day, you would wind up paying about $4 (at 24%), less if later in the cycle, much less if you go online and pay off the balance early.

Grazie mille a tutti! (You get my drift :)