A couple of decades ago, travel to Europe involved a money belt stuffed with dollars, exchanged at an airport kiosk. This is no longer necessary – life is much easier.
Here’s how paying in Italy actually works today, written for travelers from the US and Canada.

The short version

Bring a Visa or Mastercard credit card with no foreign transaction fees, a debit card for cash machines, and a backup card. Remember to memorize your PIN.
Tap your card or phone almost everywhere. Italian businesses are required by law to accept cards.
Get a little cash from a bank ATM when you arrive. Don’t exchange dollars before you leave.
Whenever a card machine or ATM offers to charge you in dollars, say no and choose euros.

Yes, cards work. Really.

Italy used to have a reputation as a cash country, and plenty of Italians still enjoy the feel of a crisp banknote. But since June 30, 2022, shops, restaurants, hotels and most other businesses have been required to accept card payments, and those who refuse risk a fine. Tapping your card is now perfectly normal everywhere from supermarkets to gelato shops.

A few things worth knowing:

Visa and Mastercard rule. American Express is accepted at many hotels and larger shops, but not in many smaller places, and Discover is hit-and-miss. Bring at least one Visa or Mastercard.
Use a card with no foreign transaction fees. Many US and Canadian cards quietly add around 3% to every purchase abroad. Plenty of travel cards don’t, so check yours before you go.
Know your PIN. Most purchases are tap or chip with no PIN at all. But unattended machines, such as some gas pumps, parking meters and ticket machines, may ask for one. Ask your card issuer whether your credit card has a PIN, and memorize it.
In restaurants, the card machine comes to you. Ask for the bill and mention you’ll pay by card. You can even impress them with your Italian: “Il conto, per favore. Posso pagare con la carta?” The server will bring a portable terminal to the table.
Tipping is not expected the way it is at home. If service was lovely, leave a few euros in cash on the table.

Your phone is a wallet too

Apple Pay and Google Pay work wherever you can tap a card, which is most places. They’re also a little safer, because the shop never sees your actual card number.

Two tips. First, make sure your bank can reach you abroad: many banks send security codes by text, so keep your home number able to receive messages, or set up your bank’s app before you leave. Second, carry the physical card as a backup, in case your phone battery gives up halfway through a long Tuscan lunch.

The one button you should never press

Sooner or later, a card machine in a shop or restaurant, or an ATM, will kindly offer to charge you in US or Canadian dollars instead of euros. It looks helpful: you see the amount in your own currency straight away. It’s called Dynamic Currency Conversion (DCC), and it’s a trap. The exchange rate is set by the machine’s operator and is typically several percent worse than the rate your own bank or card network would give you.

Always choose euros. On an ATM, look for buttons such as “Decline conversion”, “Continue without conversion” or “EUR”. On a card machine, pick EUR. If a cashier asks “Dollars or euros?”, smile and say “Euro, grazie.” And if you notice a receipt in dollars, ask them to cancel it and run it again in euros.

Getting cash: ATMs, not exchange counters

You will want a little cash, and the best place to get it is an ATM (Italians call it a bancomat) after you land. Use your debit card, not your credit card: taking cash out on a credit card counts as a cash advance, which usually means fees and interest from day one.

Use ATMs that belong to a bank. Machines in the wall of a bank branch generally cost less than the standalone, brightly branded cash machines in airports and tourist areas, such as Euronet, which tend to charge higher fees and push hard on currency conversion.
Decline the conversion (see above). Yes, even at the ATM.
Take out a sensible amount at once rather than lots of small amounts, since your bank may charge a fee per withdrawal. Some US banks and brokerage accounts refund ATM fees worldwide, so it’s worth checking yours.
Skip the exchange counters at home and at the airport. The rates are usually poor, and with cards working almost everywhere, there’s no need to arrive with a wad of euros.

A note for Canadians

At home, your debit card probably runs on Interac, and Interac doesn’t work for purchases abroad. If your card also has a Visa Debit or Debit Mastercard logo, you can use it in Italian shops just as you would any other card. For cash, check the back of your card for the Plus (Visa) or Cirrus (Mastercard) logo: Italian bank ATMs accept both. If in doubt, call your bank before you go, and keep a credit card handy for purchases.

So how much cash do you actually need?

Not much. A small stash, around €100, covers the places where cash is still handier: a quick espresso at the counter, a stall at the weekly market, a tip for a wonderful waiter, a coin for a public restroom, a few euros in the donation box of a beautiful little church. Everything else, from museum tickets to dinner, can go on your card.

Before you fly: a quick checklist

A Visa or Mastercard credit card with no foreign transaction fees
A debit card with the Plus or Cirrus logo for ATMs
A backup card, kept separately from your wallet
The PINs for all of them
Your cards loaded into Apple Pay or Google Pay
Your banking apps working, and a way to receive security codes abroad
A quick look in your bank’s app about travel notices (many banks no longer need one, but some still do)
The magic words: “Euro, grazie”

And during your cooking week with us? Almost all your meals are already included, so your wallet gets a well-earned rest. Questions? Our FAQ covers the rest, or just get in touch.

Featured photo: Blake Wisz / Unsplash