Money and Your Vacation In Italy

If you travel to Italy for a vacation, you should be aware of some of the currency basics. Travellers are usually concerned with several issues. What's the currency conversion rate? Where can I get my dollars exchanged into Euros when I arrive? Can I use my travellers checks? Are ATMs readily available? What if I need a larger amount of cash or I need a bank? Can I use my major credit card anywhere I go? What is tax-free shopping? These are all excellent questions to ask before you leave on your Italian vacation. Each has an answer that'll be addressed here.

What is the currency conversion rate in Italy?

First and foremost it's important to know that Italy uses the European Euro. There is no "Italian currency." One U. S. dollar ($ 1) equals about 0.70 Euros. The currency conversion rate can vary daily, so it's best that you ckeck for a more up-to-date figure before you leave for your holiday in Italy. You'll find current exchange rates at The Universal Currency Converter website.

How can you get Euros once you arrive in Italy for your vacation? 

There is an exchange office at all of the major international airports. Exchange offices can also be found at railway stations in the largest cities. You can also get euros at an ATM or bank. Virtually all the major airports and train stations have ATM machines.

Are ATM's readily available?

There are ATM's all over Italy in both big cities and smaller towns. Typically, if a town has a bank, there is usually an ATM machine. In Italy ATM's are called "bancomats." These bancomats work just like they do in the US. You select your language of preference from the screen when you begin, then proceed as you would at any ATM machine. You can use your credit or debit card to get money (euros only) out of the bancomat as long as there is a Cirrus, BankMate or other co-operating bank symbol that match on the machine and your card.

Can I use my credit card anywhere I go?

You should always find out from your credit card company or bank if their cards can be used worldwide before you leave for your vacation to Italy. Most businesses accept major credit cards in Italy, but look for the credit card signage stickers on doors of shops just like there are in the US.

Visa is the universal credit card. Less so is Master-Card. American Express is accepted mainly in major hotels, car rental agencies and airlines. Most smaller businesses do not accept American Express.

Always let your credit card company know when you are leaving the country and the amounts that you may be charging. You could easily have a large purchase denied because your credit card company suspects fraudulent use if you do not inform them ahead of time of your travel plans.

Can I use my traveller's checks?

Travelers' checks are also accepted in the major cities. Beware, however, that since the advent of the ATM machine, travelers' checks are being used less and less and, in many cases, are frowned upon as a currency. Also, because they are being used less frequently, it has become much more expensive to cash traveler's checks.

Your best exchange rate will usually be with your credit card company. So charge whatever you can. Use cash only when you have to, such as for small purchases -- a cafe or a gelato, meals at small establishments that don't take credit cards, entry fees into museums and tourist sites, etc.

What if I need a larger amount of cash or I need a bank?

If you need a larger sum of cash than the bancomat will provide during your Italy vacation, you will find that there are banks all over Italy especially at the main tourist attractions. Most Italian banks close for about an hour and a half for a lunch break during the week and are closed on Saturdays, Sundays and National Holidays.

What is tax-free shopping and how do I take advantage of it?

People taking an Italian vacation will be glad to know that non-resident visitors may claim a refund for the tax they pay on many of their purchases. The refund is only available for purchases over a certain amount -- approximately 90 Euros. But if you plan on purchasing expensive items like jewelry or designer clothing, it is definitely worth the process since the VAT or value added tax can be as high as 20% on some items.