Rest of payment to B& B in cash?

It's completely a matter of an individual establishment's policy. If they ask for cash, they probably mean cash. It helps some places avoid taxes. Get the cash from an ATM.

Thanks, Doug. I will clarify it with the establishment. If yes, I'll just get it form ATM.

"It helps some places avoid taxes" This is probably used more by smaller establishments to keep the costs down a bit by avoiding the 5% (or whatever) credit card fees (which is the same reason Rick now offers a discount for those who pay their tour balances in cash rather than by credit card). Trying to avoid taxes in Italy is not a good idea as the Guardia di Finanza is watching! That's the same reason one should hold onto their cash register receipts after buying a Gelato or whatever, as you may be asked for it when you exit onto the street. If the merchant didn't provide one and he gets caught, he WON'T be having a pleasant day! Cheers!

Ken, I didn't realize that they're that strict. Thanks.

I've found that small places in Italy will accept the CC to secure the booking to protect themselves but as other replies have noted they would rather get cash b/c of the fee for them to process a card. I had one B&B owner tell me he has a real problem of people not showing up and he actually started having people pre-pay their full stay it was getting so bad. As travelers, we worry about the places we stay being honest, but they worry about us too I guess :) so it makes sense that if there's a no-show, it's worth the CC service fees to charge the no-show a night's stay or something, but if you actually show up and stay, the cash is required. If you read the statistics, Italy in general is a very cash-based society. One study I read suggested Italians use credit cards only a few times per month! that's why you'll see some places that do accept cards will offer a nice discount for cash b/c it's so much easier for them.

It really is about the merchant fees - 5% is on the low end of the scale. Here in NA, for a small business, the merchant fees run around 3.5% on average for cc transactions. In Italy, it can easily be as high as 10%. So for a 300 euro bill, up to 30 euros is immediately lost to the bank. No shows and bank fees are a real problem for the smaller places, B&Bs and small family-owned inns/hotels, like the ones you & I & Rick particularly like...

Whoops! Ken's right. I answered the question not realizing it was about Italy. Italy is more strict about taxes. I'm guessing the cost of credit cards is the right answer to why hotel owners ask for cash. In France, dodging taxes by asking for cash has been more common in my experience. Especially in small chamber d'hote type of places.

I always offer to pay cash to any B&B in Europe even if they accept a credit card to help the small business person avoid the charges that the CC folks charge. I have never had a problem getting enough local currency to pay them from an ATM there even if it takes an extra day or two. I do ask that my daily withdrawal limit be raised by my DEBIT card folks just for the time I am gone from home. My credit union has always obliged. I do, however, use a credit card at hotels.

Sally:
Practically speaking, it is hard to have all of the cash in hand when you check in to a B&B. It might take a day or two of maximum withdrawals to accumulate enough euros to pay the bill, especially in Rome for your apartment. (After all you also need euros to pay for meals, admissions, transportation.) In the smaller B&Bs they didn't even expect payment until the last night or departure morning. In some places (Montalcino and Rome for us) they wanted it as soon as we could accumulate enough euros. It's awfully nice to have a safe in your room where you can stash euros for a couple of days as you make withdrawals. :-)