will there be a problem using my mastercard in italy?
Shouldn't be, but be sure to call the bank that issued your mastercard and alert them to your international travel dates so that their fraud department doesn't freeze your account when it sees the card being used overseas. I would suggest you take a backup credit card ortake your ATM card just in case that one has a problem or is stolen or lost.
If it's a plain ole' magnetic strip type you'll have probs at unattended gas pumps and possibly some parking machines (if you'll be driving...always keep cash handy in case) and ticket machines.
Ron's advice, as always, is right. Keep in mind that stores won't take credit/debit cards for small purchases. Plan on spending at least 20-25 euro if using a card.
And a lot of places won't take credit cards at all. Italy is much more a cash-based society than is the US.
True. Alot of smaller places won't take cc's at all and I've also had the experience a few times of lines going down so you can't use the cc even if accepted. Always keep some cash as a backup.