Much like the rest of the world, in Italy Money makes the world go round.
While Italians are open and friendly, and you might get some lovely tasters of the food at a local farmer’s market, you need money to experience all that Italy has on offer.
Unfortunately the world class museums don’t come free.
This article outlines everything a traveler needs to know about money in Italy.
Currency in Italy
The currency in Italy is the Euro. The Euro is used throughout most of Europe and has been Italy’s currency since 2002.
The Euro is generally written as € or Euro. often the symbol comes after the value but this varies across Europe.
Any Euro coins or notes that you have from Germany or France are equally valid here.
The Euro notes don’t vary but Italian coins have their own markings on the rear, items that are of cultural significance to Italy such as Da Vinci’s Vitruvian Man.
You can use any Euro Coins in any European Country but prices in Italy are rounded to 5¢ so you won’t see many of the smaller coins.
Using Cash in Italy
Cash is still quite commonly used in Italy.
For Travelers the most important place where you will need cash, is often for the city tax in your accommodation.
Some cities still insist this is paid separately and in cash so guest houses like to collect it as cash. Merchants are quite advanced when accepting cards, but the local governments aren’t all as ‘modern’.
Coffee at a bar is quite cheap, sometimes only 1€, and so cash and some coins are necessary during the course of a normal day’s sightseeing.
Pro Tip – Coffee at the bar is much cheaper than sitting at a table in Italy. Price lists do show the prices separately. A cappuccino might be 1.80€ at the counter and 3.50€ if served by a waiter.
At tourist sights credit cards are generally preferred and sometimes now, like in the Pantheon in Rome there is a separate line for cash or cards. Look out for these situations.
One of the great things about visiting Italy is the fantastic fresh food. Visit a farmers’ market even if you have nowhere to cook. Get some fresh fruit for a picnic lunch. But make sure you bring cash. Mobile stall holders generally don’t take cards, but this is changing.
Public transport is a little complex. Most busses don’t take cash!!!! However they don’t take cards either. You need to buy your tickets in advance by app or at a Tabacchi. The Tabacchi is a tobaco shop or kiosk that generally sells newspapers and bus tickets and sometimes a quick espresso as well as cigarettes.
Using Credit Cards in Italy
Credit and Debit Cards are used extensively in Italy. For the most part they are accepted in all hotels and restaurants.
Some smaller countryside guesthouses might not accept cards, but generally you won’t have found them without Airbnb or booking.com, so you will probably have paid online in advance.
Restaurants all take cards, but small hole-in-the wall sandwich places might not. Still though, the majority of smaller places do accept cards. Anywhere you expect to pay more than 5€ you can expect to pay with a card. Expecting to be able to doesn’t mean you can though! Just ask in advance or show your card when ordering.
Taxis do take cards – they should all take cards but some drivers try to claim the machine isn’t working. Avoid difficulties using the FreeNow app or Uber. Booking and paying in advance makes things just simple.
Swiping Credit Cards in Italy
Italy uses the European system of chip cards with a pin number. We have not used the insecure magnetic strip for 25 years in most of Europe. However most Italian card readers still have the ability to swipe your card if you have an older American card.
Of course today we use NFC technology and tap-and-go everywhere. However, depending on your bank there can be a limit to this. My limit is €50 on one card, €100 on another. Know what your limit is. Sometimes you need to use the card the old fashioned way, stick it in the reader and key in your PIN number.
Paying in Dollars on Credit Card
Lots of card readers in Italy will notice that you have a foreign denominated card, especially in tourist areas or hotels where foreigners are regular visitors. If your Bank is, for example, from the US it will offer you the chance to pay in dollars. This lets you know immediately what price you will be paying.
There is a big downside. When the merchant converts the currency they add a large commission built into the exchange rate. ALWAYS PAY IN THE LOCAL CURRENCY for the best rates. Let your card issuer at home sort out the exchange rate.
I have never seen a better exchange rate from a seller than what my bank would offer me.
Apple Pay and Google Pay in Italy
Both Apple Pay and Google Pay are widely accepted in Italy. Anywhere that accepts cards with a tap and pay machine will accept them.
I suggest having your actual card as backup for two reasons. One your phone can go missing, and two older merchants prefer to use the card when the touch system doesn’t work, instead of unplugging and resetting their machine.
Exchanging Dollars in Italy
Of course if you are coming from America, Australia or anywhere else you won’t have any Euros. You will need to exchange your dollars for Euros. Or whatever currency you do have.
Be forewarned. Exchanging dollars for Euros in Italy is not a good idea. People in Europe have no use for dollars and the exchange companies are there just to serve people who are away from home. Essentially these people are a captive market and don’t have much choice.
The Exchange rates for Dollars to Euros are often 10-15% worse than the standard interbank rate at airports. In Western Unions or similar exchange places in the city center they are still close to 10%. Use an ATM and withdraw Euros directly. This will get the best exchange rate.
Check with your bank before you travel what the rate for withdrawing Euros from ATMs will be. Some charge a fee for each transaction. Some charge a percentage.
ATMs in Italy
ATMs in Italy are called Bancomat. They are found at banks and other places where people are likely to need cash.
There are two types of ATM – ones operated by a bank and private ones. Private ones often charge a horrible fee to withdraw cash, on top of the fee your bank might charge. Bank ATMs normally don’t charge a fee for using your foreign card.
Be careful using your cards in some public places around Rome or Milan city centers or main train stations. There are sometimes a few dodgy people preying on tourists, pretending that ATMs don’t work well or similar. It isn’t anything to be overly worried about, just be aware of people getting too close or trying to help unnecessarily.
Tipping in Italy
Contrary to lots of advice for Americans tipping in Italy is perfectly normal and very much appreciated by service workers.
Tipping in Italy is permitted and normal. It is however, not obligatory or necessary. It also isn’t a widespread practice. In fact lots of Italians will tell you they don’t tip, though a small percentage do.
Take it from someone who has worked in the tourism industry for 25 years in multiple countries and worked with tons of Italian waiters.
If people are asking for a tip then ask them if they would say the same to an Italian customer. In this situation it is ok to make them feel bad.
Some people will refuse tips. Most will accept them graciously and be genuinely thankful.
Tipping should be thought of as a kind gesture, enough to get a beer on the way home from work, rather than as a substitute for a decent wage, as it is in the US and some other countries.
Tipping in Restaurants in Italy
Tipping in Italy is not obligatory in restaurants. Restaurants in Italy generally include a cover charge – the coperta. This is about 2-3 Euros (sometimes a lot more in touristy areas) and covers service, bread and olive oil and water on the tables. More casual places might just charge a little for bread.
Leaving a couple of Euros or rounding up the bill can be a nice way to say thanks.
Leaving 20% is unnecessary as waiters get a reasonable wage. More recently this has become somewhat less reasonable in places, but is still a full living wage in most cases.
Tipping Guides and Drivers in Italy
Like in restaurants, tipping guides and drivers in Italy is not obligatory but will be appreciated.
Leaving about 10% of the cost of a tour is reasonable. A couple of Euros per person if it is a group tour is a decent amount. If it is a private guide and he works for himself then tipping is not necessary at all.
Tipping in Bars in Italy
Tipping in bars in Italy is not necessary for counter service. For table service see what I said above.
In Italy a bar is somewhere with a counter, often open very early for coffee. There are also bars for the evening, cocktail bars and so on. The same applies. Tip if you feel that the waiter did something exceptional.
Summary
Money is an important aspect of travelling. Don’t get surprised by extra charges on your credit or debit card when you get home. Make sure you know what fees you will be charged when you are traveling in Italy.
In Italy the currency is Euros. Cash is widely used though cards are also widely accepted.
Tipping is not a regular part of the culture but is appreciated in areas that cater to tourists so they can augment their income, given that they work seasonally.
Check out my post on exchanging money when traveling and avoiding international ATM fees.
Check out my post on how much a trip to Italy costs
