Cash, ATM Debit Cards, and Credit Cards
You'll need to have cash in Italy, in euros (€). €1 is worth about $1.50 (unfortunately!). Some recommendations: - You should have some pocket cash before you leave the USA so that you don't land empty handed. You can get such cash at your bank (exchange some dollars for euros - about €100 would be good), though check their fees and exchange rates.
- Once you are in Italy, the best way to get cash (as far as best exchange rate and lowest fees) is via an ATM machine (called a "Bancomat" in Italy). The airport has an ATM machine, so you can get money there (although, be forewarned that the machine can be out of order, which was the case for many of our students upon arrival last year). Note that you need an ATM card to do this. Having one just for this purpose is very important, otherwise it will be very inconvenient, and probably costly, to get cash, so now is the time to think about arranging to have such a card.
- You can also get cash by taking a cash advance using your credit card (American Express, MasterCard, and Visa work in Italy, but not Discover). However, this can be very costly! The credit card company may charge a fee per cash advance, and they will charge you interest (and generally, at a very high interest rate!) until you pay it back. However, if your ATM card is not working, at least you know this is a viable option.
For more information on this issue, check out these web pages. Their general advice is good (though you should independently verify any time-sensitive advice, e.g., debit card fee charged by a particular bank). The last one is especially good for deciding which ATM card and credit card to get. Here are two specific recommendations, based on the information provided by the links above (especially the fourth one): - A good ATM card is with Addison Avenue. This is one of the few banks (actually, a credit union) that (1) does not add a surcharge to ATM withdrawals at foreign ATMs (most others charge 3%), (2) has a branch in CA (Rancho Bernardo), which is important because many banks will not allow you to open a checking account from out of state, and (3) allows opening the account via the web. You can open a "Premier Checking" account with them on line with a minimum of $3000, and that gets you a ATM debit card with no surcharges (some of their other types of checking accounts may not offer this feature). (Charles Schwab may also offer a similar ATM card.)
- A good credit card is MasterCard with Capital One. They do not add any surcharges on purchases; most others charge 3%. You can open an account with them on line. Addison Avenue also offers a Visa credit card that may not have any surcharges.
Having said the above, let's keep things in perspective. If you spend $500, if the cards you currently own charge 3%, the charges will be $15. So you might ask whether the effort of getting a new card is worth saving the 3%. Important notes: - The above information is believed to be correct (as of June 2009), but there is no guarantee! You should verify it yourself.
- Opening an account on line can take 1-2 weeks, maybe more, so give yourself plenty of time.
- Make sure the PINs are four numbers, which is only what works in Italy.
- Call your card companies to let them know you'll be in Italy (and other countries if you will be traveling), and for how long.
- Write down your card numbers and their associated customer service phone numbers (located on the back of the cards) somewhere safe so that, if you lose your wallet, you can immediately call the card companies to have them stopped.
If you identify any inaccuracies or changes in the above information, or if you find other good deals, please let me know.
Student Voices
"Well, everything that I was going to suggest about money is on the first link up above. It's pretty long, but you should definitely take the time to read it. It will tell you why taking money out of an ATM machine is your best choice for getting the most out of your American dollars and why just charging your purchase will give you a higher exchange rate."
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