money exchange & transportation

A debit card at an ATM is always the cheapest and most convenient way to obtain local currency. Personally we pay cash for everything and far easier to deal with cash.

Frank is right. The only thing I'd add is that it's better to use a credit card for more expensive purchases, because of the built-in consumer protections and the ability to dispute erroneous charges.

I am not sure I would completely agree with that. You will never get erroneous charges when you pay cash. Often with cash at hotel you can get at least a 5% discount. On our last two trips the only credit card charges made were during the last couple of days when we were managing our Euro to make sure we had some let over for the next trip. Some are concerned about credit card numbers being compromised so the less you use the card, the less opportunity for the numbers to be taken. Personally we find it much easier and convenient to use cash. It works for us but if you are uncomfortable carrying cash, then use the card.

Some people, like me, like to bring a certain amount of local currency with us so that we don't have to search for an ATM as soon as we land. Your bank probably sells euros. You won't get a very good exchange rate but to me, it's worth it to have 100 or so euros on me when I arrive. After I arrive, I use an ATM card to get cash. Europe is more of a cash society than the U.S. (though this might be changing) so it's always good to have cash. I also bring a credit card (Capital One, no international fees) and a backup credit card for larger purchases (such as books at museum stores, which unfortunately is my wont). Notify your bank and credit card company (-ies) of which countries you'll be in and when, so that they won't flag your account if you use your bank and credit cards in Europe.

There are 3-4 high-speed EuroStar Italia trains/hour between Florence and Bologna. The trip takes 37 minutes.

I think Tom was saying that you have some consumer protection when you purchase with credit cards, NOT that there are any penalties for using cash.

I'm a cash-only kinda girl, too. For me, it's easier to track my expenses when I'm paying cash (and tracking how much I'm taking out of the ATM) then with a credit card. I use my credit card for the things I need to/should pay for before the trip, like longer distance trains, car rentals, attraction tickets and hotel reservations, and when I'm there for the occasional train ticket or dinner on the last night if I'm starting to get short on euros (short meaning that I'll have less than 50 to put aside for the next trip).