Italian Currency: A Traveler’s Guide

Whether you’re wandering markets in Rome or savoring wine in Tuscany, an Italian vacation requires using the local currency. Understanding how to handle your money will help you budget, spend easily, and avoid any currency-related headaches while you’re there.

So, what type of money does Italy use? In this guide, we’ll cover the basics of Italian currency, from the denominations to how to exchange money to using ATMs. Prepare for a smooth, worry-free adventure in Italy!

What Is the Currency of Italy?

Let’s start with the basics — what is Italian currency called? Italy’s official currency is the Euro (€, EUR), which is also used in 19 other European countries, making it especially convenient for travelers hopping between European destinations. 

In Italy, money was previously called the lira, so if you’ve committed that factoid to memory, know it’s a thing of the past. Today, the Euro simplifies spending across much of Europe, so you’ll only need to handle one currency throughout your travels in participating countries.

Euro Denominations

Now that you know what Italian currency is, what is the Italian money called? The Euro comes in coins and banknotes with various denominations. Here’s a quick breakdown:

• Coins:
  • 1 cent
  • 2 cents
  • 5 cents
  • 10 cents
  • 20 cents
  • 50 cents
  • €1
  • €2
• Banknotes:
  • €5
  • €10
  • €20
  • €50
  • €100
  • €200
  • €500

Paying in Italian Money: Cash Rules

While credit cards like Visa and Mastercard are widely accepted in Italy, carrying cash is smart, especially for smaller purchases or when visiting rural areas. Small shops, cafés, and even some taxi drivers prefer cash over cards, so having Euros on hand can save you the hassle. You’ll especially want cash for things like coffee, transportation tickets, and tipping.

Here are a few tips for handling Italian currency and credit cards securely:

• Carry some small bills and coins for everyday purchases. Many places won’t break large bills, especially for small transactions.
• Use ATMs (Bancomats) from reputable banks to withdraw cash. Avoid standalone machines that typically charge higher fees.
• Keep your cash in multiple places (not all in one wallet or pocket) to minimize loss if anything gets misplaced.
• Stay aware of your surroundings when withdrawing cash or using cards, especially in busy tourist areas, to avoid theft or scams.
• Use cards with chip-and-PIN technology for added security, and consider setting up mobile payment options like Apple Pay or Google Pay, which are increasingly accepted.

How to Exchange U.S. Dollars for Italian Currency

When traveling to Italy, you’ll need to use Euros, so plan to have Italy’s currency on hand for smaller transactions. It’s easy to exchange your home country’s cash for Euros, as well as use ATMs and cards to spend your home currency without bringing physical money along for the trip. 

Know the Exchange Rate

The exchange rate is the value of one currency compared to another. Exchange rates fluctuate, so it’s good to check before converting your money. Here’s what you need to know to make the most of your currency exchange:

• Where does the best exchange rate usually come from? ATMs in Italy generally offer the best rates, as they use the bank’s exchange rate without additional markup.
• Should you exchange all at once or as needed? It’s better to exchange as needed. You don’t want to carry too much cash, and converting a little at a time allows you to adjust to changes in the exchange rate.
• What’s the easiest way to calculate conversion on the fly? Download a currency conversion app, like XE Currency or Google Currency Converter, to calculate real-time rates.
• Where are the best exchange rates found? The best rates typically come from Italian ATMs, followed by your home bank or a credit card with no foreign transaction fees.

Where to Exchange Money

There are a few ways to exchange other currencies for Euros, both before and during your trip.

Exchange Some Money Before Leaving Home 

You can purchase Euros before you leave for Italy. Currency exchange services are your best bet if you are exchanging money right before your trip, since they’ll have Euros on hand. However, your bank will likely offer a better rate. If you plan to go this route, do this at least a week ahead of time, as they may need to order it. 

Use the Airport ATM or Exchange Kiosk

Once you arrive in Italy, using an airport ATM is the easiest way to get Euros. ATMs typically offer the best exchange rates. Make sure your credit or debit card is set up for international use, and be aware of potential foreign transaction fees.

Use an Italian Bank

In major cities and airports, you’ll find ATMs, and most accept major credit and debit cards like Visa and Mastercard. ATMs in Italy typically offer the best exchange rates without excessive fees. Just make sure your card has a four-digit PIN and is linked to your checking account. You can also walk into a bank to exchange cash, though this may take longer.

What to Avoid

Avoid currency exchange kiosks in tourist-heavy areas, as they often have high fees and poor exchange rates. Also, avoid exchanging money at hotels, as their rates tend to be less cost-effective. Instead, stick to ATMs and banks to get the best value for your dollars.

Credit and Debit Card Use in Italy

Using debit and credit cards in Italy is straightforward, but you’ll need a strategy for accessing money and making payments to avoid unnecessary fees and hassles. Here’s what to keep in mind while using your cards during your trip.

How to Use ATMs in Italy 

Most cities and towns across Italy have ATMs, known locally as bancomats, making it easy to withdraw cash in Euros. If you’re heading to more rural areas, you’ll want to carry extra cash as ATMs may be harder to find.

Here’s how to use an ATM in Italy:

• Insert your card and follow the prompts, which are typically available in English as well as Italian.
• Choose the local currency (Euros) if prompted, as this usually gives you a better exchange rate than selecting USD for conversion.
• Withdraw larger amounts at once to avoid multiple withdrawal fees. If you have a clear idea of how much you’ll need for your trip and have somewhere to keep extra cash secure, withdrawing larger sums can help. Most banks charge a fee for each transaction abroad, so fewer withdrawals will save you money.

While credit cards are widely accepted in Italy, especially at hotels, restaurants, and larger stores, smaller businesses may still prefer cash. It’s vital to ensure your credit card uses chip-and-PIN technology, which is the standard in Italy and offers better security than the traditional swipe-and-sign method. 

Before you travel, notify your bank and ask about any foreign transaction fees. Some cards charge up to 3% on international purchases, while others have no fees. Use your banking app to monitor transactions and stay alert to potential fraud. Additionally, carry a backup card in case your primary card is lost or isn’t accepted in certain places.

Paying with Debit and Credit Cards

When using debit and credit cards in Italy, understanding exchange rates and fees is crucial for managing your budget. Credit cards offer competitive exchange rates — better than what you’d find at currency exchange kiosks. Cards can be useful for larger purchases, hotel stays, or dining at upscale restaurants, where you’ll want the convenience and security of a card.

Which card is best to use?

Visa and Mastercard are the most widely accepted credit cards, easily usable at hotels, restaurants, and larger stores. Cards like Discover and American Express are less commonly accepted, so stick with Visa or Mastercard for your transactions.

How can I avoid paying foreign transaction fees

Foreign transaction fees can quickly add up, ranging from 1% to 3% per transaction for purchases made abroad. Many travel-focused credit cards waive these fees, making them a smart choice for international travel. Check with your bank to see if your card charges these fees, and consider applying for a fee-free card to save money.

Mobile Payments and Apps

Although cash is still the go-to choice for small businesses, larger retailers, restaurants, and tourist attractions often accept mobile payments like Apple Pay and Google Pay. This makes it easy to enjoy a cashless experience when you’re out and about.

However, payment apps like Venmo and Cash App aren’t as popular in Italy, so it’s best to stick with more established mobile payment options or rely on cash and credit cards. Embracing mobile payments can make your trip more convenient, allowing you to focus on enjoying everything Italy has to offer.

Plan the Trip of a Lifetime with What a Life Tours

Handling Italian currency is straightforward, but it requires some preparation. Familiarize yourself with the Euro, balance cash and card use for small and larger purchases, and stay alert for scams in busy areas. Before your trip, check exchange rates to maximize your budget.

Book a tour with What a Life Tours to make the most of your adventure. Our expert-guided tours can help you navigate Italy’s rich culture, allowing you to enjoy your experience without the stress of money matters. Contact us today to plan your unforgettable journey!

FAQs

Should I carry cash in Italy?

It’s a good idea to carry some cash in Italy, especially for small purchases like coffee, transportation tickets, or local markets. Many smaller shops and rural areas prefer cash.

Can I use US dollars in Italy?

No, U.S. dollars are not accepted in Italy. The official currency is the Euro (€), so you’ll need to exchange your dollars for Euros before your trip or once you arrive.

What should I do with leftover Euros at the end of my trip?

You can save the leftover Euros for your next European trip or exchange them back to your local currency at a bank or currency exchange service. Alternatively, you could use the remaining cash at duty-free shops in the airport or spend it on last-minute souvenirs.

Are traveler’s checks still used in Italy?

Traveler’s checks are rarely used in Italy and can be difficult to cash. Instead, rely on debit or credit cards and withdraw cash from ATMs as needed.