Money: Debit or Credit? by nyonnetti
We used our debit card for the majority of our spending in Rome. Our bank charged a 1% fee on every withdrawl which amounted to a $2-$3 charge per withdrawl. The credit card company charged a 3% fee on every purchase, so you can see that it was actually cheaper to use our debit card. Check with your bank about the fees. Our friend's bank charged a 2% fee on withdrawls so it varies.That being said, be sure that you find out which ATM's your debit card will work at in Italy. I know there were some that our card would not work at, which made me a little concerned since that was the primary way we were getting around on our trip and two of our B&Bs wanted cash up front.
We withdrew about 200 euros every 2-3 days and my husband and I would each carry 100 euros. I found that in Italy, with all the markets and cafes, we really needed to have a good supply of cash on us. We used the silk neck pouch that goes under your clothing to carry our money, passports, credit cards and ID's. This worked great and we did not have any incidents of getting pickpocketed. You can purchase them at any luggage store and they cost about $15-$20 each.