Compared to many other countries in Europe and around the world, Italy remains a predominantly cash-driven society. While you can still use your bank card in many establishments, many Italian restaurants, cafes, shops, and hotels still prefer cash.
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In Italy, cash is still preferred in most restaurants, cafes and other establishments, although credit and debit cards are becoming more widely used throughout Italy and are an increasingly convenient way to pay for things. Visa and Mastercard are widely accepted, although American Express is not.
Resist the urge to buy foreign currency before your trip.Some tourists feel like they just have to have euros or British pounds in their pockets when they step off the airplane, but they pay the price in bad stateside exchange rates. Wait until you arrive to withdraw money.
Don't bring any more cash with you than you'd normally carry with you in your own country on a daily basis. Bear in mind the increased pickpocketing risk for a tourist in Rome. When you get to the airport, get one or two hundred euros out of one of the ATMs in the baggage hall just in case (they don't charge fees).
European travelers should always have some cash on hand; getting it from an ATM abroad is usually the easiest, most advantageous way. If you need cash from an ATM, it's usually better to use a debit card, because credit cards often charge a high interest rate for a cash advance.
What is the rule for tipping in Italy? There is no strict rule about tipping in Italy. Leaving a tip is a courteous gesture that shows the person who provided a service to you, that you appreciated their help. As such, leaving a tip is entirely up to you and, in many cases, it will not be expected, albeit appreciated.
You'll also likely find Italy to be less expensive than other popular European destinations such as the UK or Scandinavia. On average you can expect a trip to Italy to cost €70-295 per person per day (around $74 to $310 USD).
In my opinion 500 euros is sufficient for 10 days and if you feel you need more, just use your debit card to get some more. Carrying lost of cash is never a good idea and especially in Italy and not all hotels have safes. Make sure your PIN for your card has no more then 4 digits.