Guide to using credit cards in Italy

Quick insights

• Credit cards are widely accepted throughout Italy.
• There are several fees you may be charged when using credit cards abroad, such as foreign transaction fees, though there are ways to limit or avoid them depending on which card you have. Refer to your credit card’s account terms for specific information.
• You may want to keep euros (the local currency in Italy) on hand for smaller purchases.

Italy is a dream destination for many travelers. Whether you want to sip Aperol spritzes on the Amalfi Coast, tour the Colosseum in Rome, devour plates of pasta in Bologna or take in the Renaissance splendor of Florence, it can be exciting to plan a trip to Italy.

Learn more about using credit cards in Italy and ways to avoid potential fees before your European travels.

Using credit cards in Italy

Generally, most businesses in Italy are legally required to accept credit cards and other forms of electronic payment.

Merchants typically accept Visa and Mastercard, and some accept Discover and American Express. Many businesses also allow for contactless payments via digital wallets. Bringing multiple forms of payment, including some euros, may help you make your intended purchases in Italy.  

With many credit card issuers, including Chase, you don’t need to notify your credit card issuer before an international trip or making a big purchase due to improvements in fraud detection technology.

Cash may be preferable for certain purchases, such as buying gelato from a street vendor or tipping hotel staff.

Understanding credit card fees while traveling in Italy

Keep in mind that there may be fees associated with using credit cards abroad. Researching your credit card’s terms may help you limit or avoid these fees. Here are some of the fees you could be charged:

Foreign transaction fees

Some credit cards charge foreign transaction fees. The fee is typically between 1-3% of the transaction amount. Banks charge foreign transaction fees to cover costs related to processing international transactions and limit risks associated with fluctuating exchange rates.

There are several ways to avoid foreign transaction fees, including applying for a credit card that doesn’t charge them. For example, some travel rewards credit cards don’t have foreign transaction fees and come with travel-friendly rewards and benefits.

Currency conversion fees

If you use a credit or debit card or take out money at an ATM while abroad, it’s fairly standard across banks to charge a currency conversion fee. The fee is usually around 1-3%. Some banks include this fee as part of the foreign transaction fee.

Dynamic Currency Conversion (DCC)

Merchants typically use a DCC service that allows a transaction to be processed in the cardmember’s home currency. The customer pays fees for this service when making a purchase and often receives an unfavorable exchange rate.

You may be able to avoid DCC fees when using a credit card. You can tell the merchant you’d like to pay in euros using your credit card. Paying in the local currency means you won’t be charged DCC fees. Sometimes the merchant can select the currency before handing you the payment terminal, or you may need to select it yourself.

When you pay in euros, you’ll still be subject to the fees and exchange rates associated with your credit card, but in many cases, those terms are more favorable than what DCC services offer. 

Pros and cons of using credit cards in Italy

Credit cards can be a convenient payment option, but they can also have drawbacks. Below, we’ve outlined the pros and cons of using credit cards in Italy.

Pros

• Credit cards are accepted by most Italian businesses.
• Credit cards may offer tools you can use for fraud protection.
• If you have a travel rewards credit card, you usually earn points at an accelerated rate on common trip expenses like flights, hotels and dining out.
• Some credit cards come with travel protection benefits for certain events like cancelled trips or lost luggage.  
• Credit card statements and digital banking tools can help you track expenses.
• The card itself is small and easy to carry in your wallet as you tour Italy.

Cons

• There’s a risk of overspending with credit cards if you don’t budget and track your spending.
• Many credit cards charge foreign transaction fees and currency conversion fees.
• Monitoring your account for unauthorized charges during your vacation may be an unwelcome chore.  
• You may be charged DCC fees by merchants.
• You’ll probably still need cash for some purchases during your trip.
• The exchange rate for credit card transactions fluctuates daily, which could make budgeting more difficult. 

Tips for making purchases in Italy

• Understanding your credit or debit cards’ terms and conditions may help you avoid foreign transaction and other fees.
• Selecting the option to pay in euros at the payment terminal can help you avoid DCC fees charged by the merchant.
• If you need cash when you’re in Italy, withdrawing euros from an in-network ATM generally offers a favorable exchange rate.
• Exchanging money at your bank or credit union before you travel will typically offer a competitive rate, but you can shop around to check if it’s the most affordable option.
• Airport kiosks and tourist centers tend to have comparatively high exchange rates.

In summary

Credit cards are accepted by most businesses throughout Italy, but you may be charged foreign transaction fees, currency conversion fees or DCC fees. There are ways to limit these fees depending on which card you have. Refer to your credit card’s account terms for specific information.