My wife and I are heading to Italy in July. What is the best way to handle money in Europe? Should we exchange cash at home? in Italy? ATM with bank card? mostly credit card? travelers checks? little of everything? <BR>Basically, what is the most efficient and hassle free way to do it? What would you suggest?

We found it best to use ATM's which were ready available everywhere. The best exchange rate was with the ATM and credit card. We mainly used credit cards for hotels, purchases, and food. ATM's were for cash etc. I did bring a little Lira with us for when first get to the country for taxis from the airport etc. <BR> <BR>Have a good trip! <BR>Mary

We just got back from Europe(2 weeks were in Italy) We used our credit card, exchanged money that we unfortunately took over with us and used the ATM's.My suggestion is use a credit card and when you get to Italy use the ATM at the airport for any liras you need. You need lira for some things i.e. leaving tips at restaurants, you cannot in any of the countries we visited put tips on your credit card bill. <BR>Unfortunately we came back with currency from every country we visited. What a delight it will be when the Euro takes effect. Beware Switzerland is not part of the European Union, and therefor will only accept Swiss Francs.

We used ATMs to get carrying around cash and credit cards for most dinners and hotels. No need at all for travelers checks as even towns of 1,000 people seem to have ATMs (Bancomat).

You might consider paying extra on your credit card bill before you go, if you plan to use it at ATMs - you may avoid paying the interest on cash advances which accrues the day you take out the funds...

If you use my debit card to withdraw from an ATM there are no interest fees. My bank may charge a transaction fee ($1.50) but banks in Europe have not.

I meant to say "If I use my bank..."

If you have not used your credit card or debit card at an ATM before, do it before you leave to make sure you know the PIN and that the card works. Personally, I would rather use Roger's debit card, but he withdrew his original offer.

I tried using Roger's debit card, but he was overdrawn. Anyway ... <BR>The advice you've gotten so far sounds good. You'll probably want to convert about $100-$200 US into local currency before you leave, just for tips and emergencies. Depending on where you live, you may want to arrange this a couple of weeks in advance with your bank. In rural areas, it takes a while for them to obtain the currency. While, of course, in someplace like New York City, it can be done quicker. <BR>ATMs and credit cards work fine in Italy. Don't wast your time or money getting travelers checks (the point of which I can never understand, unless you don't qualify for a credit card).

As everyone else said, the ATM is the best way to go. I found this especially true in Italy two years ago. I tried to cash Travelers checks at a bank and FIRST I had to go to three banks because they don't all exchange checks. Finally found one that did and they wanted my passport, which was locked in the hotel safe. What a huge hassle! I prefer NOT to carry my passport when I'm out for the day. This was in Florence, by the way. Also the LAST time I carried travelers checks!

Topping for Michael