Credit Card use

Always charge in local currency (euros) and your CC will give you a more favorable exchange rate than if you charge in dollars.

Never, ever use the charge as dollars option because you’ll wind up paying additional hidden fees. Easiest way to get euros at FCO is to use your debit card in a bank ATM. Be careful because there are numerous privately owned ATM’s that have separate user fees, unfavorable exchange rates or both.

They're called bancomats in Italy. If it says ATM on it, its likely a privately owned business attempting to draw American tourists.

You mentioned "exchange place". Those currency exchange kiosks at the airport or around town, are places where you buy local currency, not exchange. But at a rate they set, that includes large markups in both directions. Its how they make money. Its a last resort.

Read Rick's guidance yourself: ricks money tips

Use you bank ATM card if you want to get some Euro cash. Use a Bancomat, not anything that says "ATM" on it as they charge big fees. Unicredit is an Italian bank, and while they may charge a noncustomer fee, they should have the best available exchange rate as long as you opt to be charged in Euros. If they offer to charge in USD, decline that option. There is also a Postamat machine which is the Italian post office which is a good choice with low or no service fee.

Now what YOUR bank charges is another story. Most big banks charge an out-of-network fee plus a foreign exchange fee, often 3%. Key is to have a bank that does not charge big fees, like a credit union. No matter what, you will pay a foreign exchange fee of about 1%, which comes from Mastercard or Visa.

Any exchange booth where you sell USD cash for EUR cash will be very expensive, like 10% or more. The airport charges rent for the booth space and the human doing the transaction gets paid a living wage and the company operating the booth has to make a good profit to justify those expenses.

Agreed. Always choose the Euros option and stay away from blue and yellow ATM machines which are often placed conveniently for tourists. They charge a high rate. Bancomats are certainly the way to go--and banks are all over the place in Italy's cities.

The best rate I could find was in my hometown with a small currency exchange and coin collector. He gave me the specific rate (less than ATM) and did not charge any fee. Not everyone will have such an agency nearby, but maybe worth a check?

The one caveat is that, if you use a local exchange (or non ATM), choose smaller bills. Some places will not accept large ones.

Thank you all for your advice. I though it was all the way around so, please, show me where I'm wrong. If a restaurant charges me 20 euros or $21.45 and and pay the amount in dollars, can the CC company charge me more that what I paid? I thought that if I paid in euros, the restaurant could charge me at any rate and add fees and then the amount in dollar would be more than $21.45.
I'm not trying to start a debate because, after all, I asked for your recommendations and you were very kind to give them to me, that's why I'm in this forum.
I really appreciate your comments but, please, don't call me ignorant because I probably am.

alvarcorp, your assumption is that there is a government regulated official exchange rate that applies to all transactions. The restaurant or shop or whatever, can use whatever rate they want. That $21.45 could be any number, and they are going to make money on it, so it will be higher.

In your proposed scenario, if the restaurant hands you a bill for 20 euro, thats what they have to charge you, otherwise they would be stealing, and you'd have proof. And since they have the hand-held card machine right there in your face, you see exactly how many euro they're charging. If you choose USD, they're counting on you not knowing what a reasonable conversion rate is, or doing the math in your head quickly under pressure.

Its proposed to foreign customers as a "convenience" when its really just adding more to the cost. I explained this at length to someone I was traveling with, and I watched as he still punched the USD option. He said it "just sounded right."

@periscope, yeah, and I think its what foreign travelers see at a US ATM when they visit here. I think I asked here once and thats what I remember is people said that's true

@periscope, yeah, and I think its what foreign travelers see at a US ATM when they visit here. I think I asked here once and thats what I remember is people said that's true

Correct at many but not all. As well as access charges to use the ATM up to an insane level to watch out for.

I was pretty shocked when I overheard ticket-counter folks at a major museum (don't remember which one, or where) offering to charge customers in dollars rather than the local currency.

Another thing to keep in mind is that if you have a credit card that charges foreign-transaction fees, choosing to pay in dollars will not avoid those fees. It's still a "foreign transaction" even if the amount charged is expressed in dollars. You'll still pay the foreign-transaction fees, on top of the dreadful exchange rate the merchant/hotel/restaurant will impose on you because you have chosen not to pay in the local currency..