Debit card?

Getting Euros from a bank in the US is probably the most expensive thing you can do. I do not like carrying large amounts of cash. To me the risk vs. possible reward of a discount just isn’t worth it. A tour-mate in Venice had his interior security pocket of his jacket picked. Passports and an embarrassingly large amount cash were taken. I was lucky. In Lisbon I was the target but all they got was an old wallet and $2 US but replacing my driver license cost $40.

Get a debit card and credit card from a bank that charges no fees. Yes, it might involve opening a checking account. I’ve used my Capital One Visa and debit card for years and got it simply because Cap One charges neither a transaction nor foreign exchange fee. If you haven’t done so, check the Money heading in Tips and Tricks on this site.

Have you travelled in Europe since Covid? Many things have changed, including payment options. The acceptance of credit cards is much more widespread, even with small vendors. It would be unlikely to see a hotel that wouldn't accept credit cards.

Every bancomat will have a maximum withdrawal limit, which may vary from one bank to another, but that is usually a limit on a single transaction. You can always try to do a second transaction. Presumably each of you will have your own bank card. So you could at the very least do one transaction each. And of course your own bank will have a maximum daily withdrawal limit. Depending on your bank and type of account, you may be charged a transaction fee and/or an exchange fee in addition to the current exchange rate. The bancomat bank may charge a fee for withdrawals from cards that aren't theirs. Bancomats in larger cities may or may not have higher limits. Most banks will not do teller transactions with anyone who isnt an account holder.

Life is much easier if you have a no fee credit card with a high limit. Life is even easier if you load the card onto your phone.

The amount of cash you can take from an ATM is set by YOUR BANK. if you can, get your bank to increase the limit. or do as I do, go every day ( you can try going multiple times in one day - I haven’t tried that ). As mentioned, more and more places take credit cards ( Not any place I stay except in the big cities, however )

The best way to get cash in Italy is a Bancomat machine (ATM machine) attached to a bank. Be aware that there are a lot of machines called ATM which are owned by Euronet. They are usually attached to shops etc. avoid those since their rates are lousy. Go to the ones at a bank which display the Bancomat logo.

In terms of credit and debit card (and also Google Pay and Apple Pay) acceptance it is now widespread. Actually the Italian government passed a law (the only country in the EU) which mandates all merchants to accept digital payments regardless of amount. However be aware that taxi drivers (the biggest tax dodgers in Italy) always find an excuse to take only cash, for example they tell you their POS machine is momentarily out of order (it’s a lie, of course). Cash is also convenient for very small purchases like an espresso or a glass of sparkling water which usually costs just one euro or so. Another circumstance where cash may be necessary is to pay for the use of public restrooms (usually one euro). There is often a machine with a turnstile to enter restrooms and you need one euro to enter. I’m not sure if those machines take cards since I’ve always used coins. Another instance where you may need cash is to pay for parking at a pay park machine or gas at the pump at nights or weekends when the gas attendant is not available. Those machines take cards, but sometimes they require a PIN, so if your credit card does not have a PIN you may not be able to make the payment.

Everywhere else, you should be able to pay with card or with your phone, therefore the actual amount of cash you will need is not much (except maybe for those taxi drivers with the “broken” POS machine, who are a scourge to the country and to whom you should not leave a tip, not even a penny). The credit/debit card payment is the one which will give you the best exchange rate, however make sure that you select the payment in Euro not in US dollars. Basically the machine where you insert the card will often ask you if you want the card to be charged in Euro (the local currency) or US dollars. Always choose the Euro charge option not the US dollars, because otherwise they give you an exchange rate worse than what you will get from your credit card.

Can you use a debit card there without incurring the inflated exchange rate of credit cards or is it the same as using a credit card?

First of all, a debit card withdrawal from a machine attached to an Italian bank will offer the lowest exchange rate possible.

The first question regarding you debit card is whether it levies a 3% foreign transaction fee - this is a charge from your bank.

Things have changed post-Covid, with many reporting needing no cash during longer trips to Italy. So your concern may be unnecessary, and any savings you anticipate by using cash may not be worth the effort.

Since you have time, if your debit card does charge a foreign transaction fee, it would be worthwhile to open another checking account at Capital One, Schwab, or another institution offering a debit card without said fees.

The one thing you never want to do is to use a credit card to withdraw cash, as it will be considered a cash advance, and levy fees plus starting exorbitant interest from the date of the withdrawal.