Please help. Confused with Cash Options & Credit Card Transactions

Thanks again for all that reply! The link provided on money issues is especially helpful. I have another couple of quick questions. Is it OK then to just use my debit card to get cash out when I arrive in Italy? Or do you suggest carrying some Euros prior to the trip? We will arrive in Venice Marco Polo airport. I am just wondering how accessible those ATM machines are. I went to the airport web site and could not find anything regarding the ATM locations. How safe is it to use credit cards in Italy? Are they widely accepted? I have a credit card that charges no foregin transaction fees. I really like to utilize that. Thank you.

I haven't used travellers' cheques in God knows how many years (I travel to Italy twice a year, on average). I wouldn't bother, since you have to pay commission to convert them. The best way to get cash is by using your ATM card in any ATM machine in Italy. ATM in italian is called BANCOMAT. Your bank will probably charge you a fixed transaction fee (my CHASE used to charge me $5 per withdrawal) plus 3% foreign transaction fee. I have a checking account in Italy, since I travel there so much, so I use that to save on those fees. Therefore when you use the ATM, minimize the withdrawals by taking out the max you can each time. Credit cards are best although most charge now the 3% foreign transaction fee. Use them whenever you can, instead of the cash. There are no PIN required to use the credit card. The PIN is necessary for debit cards and the ATM cards. If you have memorized your PIN in letters, memorize it in numbers. Italian ATM keypads don't have letters in it.

Don't even THINK about traveler's checks! I can't believe banks and credit unions even sell those things anymore. Nobody in Europe wants your traveler's checks even if they're in Euros. Many banks don't even want them. I've never had to enter a pin to make a credit card purchase anywhere in Europe in the last 15 years. Although European Credit Cards are issued with embedded chips and pins, USA credit cards are still do not and merchants know that. What's a BNL? Just take your ATM card and use it any of the thousands of ATMS across Italy. That is THE way you should get your Euros.

Thanks guys for your responses!!!!! I guess that traveller's cheques are out. What a relief. BNL is the bank in Italy that my bank won't charge me any ATM fees if used to withdraw cash. Good thing to know that there's no pin needed to make credit card purchases.

"...I've never had to enter a pin to make a credit card purchase anywhere in Europe in the last 15 years. Although European Credit Cards are issued with embedded chips and pins, USA credit cards are still do not and merchants know that..." There have been no reports of it in Italy, but some merchants in Belgium and Holland require a pin to process a magnetic strip card instead of a signature.

BNL is one of the major banks in Italy. You won't have any trouble finding ATMs (which, in Italy, are called "bancomat"). You should read Rick's Travel Tip on money here: http://www.ricksteves.com/plan/tips/money-travel-tips.htm

1. TCs in generally a bad idea even as back up. The big issue is fraud. Anyone with a color printer and ten minutes can produce a TCs. At least most merchants know what a dollar bill should look like. There are a few diehards who think TCs may be useful but smart travelers have not used them for years. 3. Your FIRST resort should be to withdraw cash via a debit card at an ATM. A debit card is the cheapest and most convenient way to obtain local currency even if you have to pay a fee to use the card. While a 3% conversion fee (= or - a bit) is not uncommon, there are many debit and credit cards that do not charge extra fees so shop around. We personally have found it to be more convenient to use cash in nearly all situations in Italy. Hotels will often give discounts of 5% (sometimes more) for payments in cash. Best of all worlds - a debit card with no fees and discounts for paying cash. No worry about your credit card being compromised. 2. Many automated machines - gas stations, ticket machines, etc. - will require the chip and pin format of the European credit card. So you will not need pin number because your card will not work in those situations. However, most merchants will be happy to swipe you card and you don't need a pin in Italy. BUT it is good idea to have the pin for your credit card because the card will be the ultimate backup for a cash advance at ATM in an extreme emergency. And it is only for an extreme emergency because cash advance on a credit card is very expensive.

Since it's your first time, I suggest that you buy from your bank 200 euro to have on hand. I am uncomfortable not having ready cash with me, especially abroad. Here's someone's recent experience from Fodor's forum regarding ATM at the Venice airport.

Thanks, JustTravel, for the link. I think it's a good idea to have a little cash prior to the trip for those just-in-case emergencies. Really sounds like the best way to manage expenses is via ATM for cash. Only use credit cards for larger purchases. Thanks all for taking the time out to reply. Really appreciate it.

I am an old engineer who likes back up to back up. I always have a hundred or so of the local currency going in. For many the airport ATM is fine but for me whether it is 1 in a hundred or 1 in a thousand of going wrong, I like the cash in the pocket. Master and VISA cards are widely accept though we have found that cash works better and easier. But do learn to count.

BNL stands for Banco Nazionale del Lavoro and has branches in almost every city. I have a Capital One credit card and a Bank of America Visa that do not charge foreign transaction fees - yet. Don't forget to notify your bank and credit card companies that you will be using your cards in another country - this can be considered suspicious activity and your transaction may be declined.

Hi I just got a Bank of America Travel Card- Visa. It has only been on the market for about 6 weeks. There is no annual fee. There is no transaction fee. However, it is not recommended for withdrawing money. I will use a debit card for that. The card is good for purchasing gas, hotels, restaurants all places that take credit cards. If you are planning to rent a car and decide on the pay later in euros in the country you will save because there is no foreign transaction fee. There are more benefits - they cover the rental car insurance if you decline coverage. I contacted Visa and they said they even cover tires- other than normal wear and tear- ie hit a bump, pebble hits the tire. AMEX does not. You can go online to find more info.

Thanks again for taking the time out to respond. I am soo....glad to get all the support in this community. I have the TravelRewards and Capital One credit card as well with no transaction fees. I am inclined to use my credit cards while in Italy, since we manage our credit very diligently. That said, I am just not sure with RST's Italy tour, will I have more of a chance to encounter small merchants that don't favor taking American credit card as payments? Always feel nervous having wads of cash on my person, especially we will be staying in Rome for two extra days and same for Venice.

If your money is in a well secured money belt AND properly used, you have nothing to fear. If the money is in a pocket or purse, backpack, day bag, etc., then you should worry.

I've never had a problem finding an ATM at an airport. You could always bring cash in dollars and change it at the airport. Rates are usually more favorable in the foreign country than in the U.S. If your bank doesn't charge you any fees for ATM withdrawals, I would stick with that and keep the credit cards safely tucked away.

To add to Frank's last post, keep some daily spending cash in a pocket that is easily accessible. The rest of your cash, along with your other credit cards and important documents, should be in a money belt or secure system (neck pouch, belt loop pouch, pacsafe purse, etc...). As Frank said, if you're keeping all that in a wallet or regular purse, you SHOULD worry...