Italy uses the euro (€). Cards are widely accepted in cities. But: many small restaurants, markets, taxis, and churches are cash-only. ATMs are everywhere — but one screen option ("Dynamic Currency Conversion") quietly charges you 3-5% extra. This guide covers: where to get cash, how to avoid hidden fees, when you need cash, and the tipping confusion.
Use bank ATMs (inside or attached to bank branches) — Intesa Sanpaolo, UniCredit, BNL. Avoid standalone ATMs (Euronet, street-corner machines) — they charge €3-5+ per withdrawal + bad exchange rates. THE DCC TRAP: The ATM asks "Would you like to be charged in your home currency?" ALWAYS SELECT "NO" → choose EUROS. If you accept your home currency, the ATM applies its own exchange rate (3-5% worse than your bank's rate). This is called Dynamic Currency Conversion — legal, disclosed in tiny print, designed to profit from people who don't understand foreign exchange. Same rule at card terminals in shops: always pay in euros, never in your home currency.
Cards accepted: Hotels, restaurants in tourist areas, supermarkets, trains, museums, chain stores. Visa and Mastercard work everywhere. Amex: accepted at larger establishments, often rejected at small ones. Cash still needed: Small trattorias, market stalls, some taxis, churches (candle offerings), street food, beach umbrella rental, rural B&Bs, parking meters. Carry €50-100 cash daily in cities, more in rural areas. Contactless: Widely available (tap-to-pay) — works with Apple Pay/Google Pay at most terminals.
Full tipping guide → Short version: tipping is NOT expected in Italy. Coperto (€1.50-3 bread/table charge) is standard and legal — it's NOT a tip. Servizio (10-15% service charge) is sometimes included — check the bill. If service was exceptional: leave €2-5. No 20% American-style tips.