Italy uses the euro (€). That's the easy part. The complicated part: your bank charges you 1-3% on every foreign transaction, Italian ATMs try to convert currency at terrible rates (a scam called "dynamic currency conversion"), some places are still cash-only, and tipping rules are completely different from the US. This guide saves you €50-200 over a 2-week trip by teaching you the 4 money rules that experienced travelers know.
Plan my trip →1. ALWAYS choose "charge in EUR" at ATMs and card terminals. When an Italian ATM or card reader asks "charge in your home currency?" — ALWAYS say NO. Choose EUR. "Dynamic currency conversion" (DCC) adds 3-5% to the exchange rate. The ATM makes it sound helpful ("we'll convert for you!"). It's a legal scam. Your bank converts at a better rate. Always EUR.
2. Get a no-foreign-transaction-fee card before departure. US: Charles Schwab debit (0% ATM fees worldwide + refunds other banks' ATM fees), Wise card (real exchange rate, €0 fee). UK: Monzo, Starling, Revolut. Without these: your bank charges 1-3% on EVERY card transaction + €3-5 per ATM withdrawal.
3. Carry some cash. Italy is increasingly card-friendly (contactless works in most restaurants, shops, and trains), BUT: small trattorias, market vendors, espresso bars, beach clubs, and buses may be cash-only. Carry €50-100 in cash at all times. Withdraw from bank ATMs (Intesa Sanpaolo, UniCredit, BPER) — avoid independent "Euronet" ATMs (higher fees, worse rates).
4. Don't overtip. Round up €1-2. No 15-20%. Full tipping guide →. Full cost breakdown →
Cards accepted: Restaurants (almost all), hotels (all), trains (Trenitalia app, Frecciarossa onboard), museums, supermarkets, shops. Contactless (tap) works widely.
Cash only (sometimes): Small espresso bars for sub-€5 purchases, market vendors, some buses (buy tickets at tabacchi shops instead), rural B&Bs, beach umbrella vendors, street food stalls, church donations.
Amex: Accepted at hotels and upscale restaurants. Rejected at most trattorias and small shops. Bring Visa or Mastercard as primary.