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Florence uses the euro (€), accepts credit cards almost universally, has ATMs (called “bancomats” in Italian) on every other corner, and offers VAT refunds for non-EU residents. Understanding how money works—from cash vs. card preference to exchange rates, ATM fees, and tipping practices—saves you significant money over a typical week-long visit. This complete guide to money and currency in Florence Italy covers everything: ATMs, credit cards, currency exchange, VAT refunds, tipping etiquette, and the practical financial details that affect every Florence trip.
Cards are accepted almost everywhere in Florence, but cash still smooths the edges at markets and small trattorie. Our guides to tipping, dining etiquette and travelling Florence on a budget cover where the euros actually go.
January is when the tax-refund paperwork is worth understanding, because the Tuscan winter sales run for two months and the discounts reach 70 per cent. Our guide to Florence in January covers the saldi calendar.
Money in Florence: Quick Facts
| Detail | Information |
|---|---|
| Currency | Euro (€) |
| Banknotes | €5, €10, €20, €50, €100, €200 |
| Coins | €2, €1, 50 cent, 20 cent, 10 cent, 5 cent, 2 cent, 1 cent |
| Cards accepted | Visa, Mastercard universally; Amex sometimes; Discover rarely |
| Contactless | Universal |
| ATM fee from Italian bank | €2-€6 typical |
| Foreign transaction fee on cards | 0-3% depending on your card |
| VAT refund (non-EU) | ~14% on purchases over €154.94 |
| Service in restaurants | Included by law |
| Tipping | Not expected; round up €1-€2 for good service |
Cash vs. Card
Florence accepts credit cards almost universally—even small cafes, taxis, and market stalls take cards. Italian shopkeepers may grumble about card fees but cannot legally refuse cards for purchases over €5 (per Italian consumer law).
That said, cash remains useful for:
- Tips (always cash if you’re tipping)
- Small purchases at the bar (an espresso, a gelato)
- Some traditional trattorias that prefer cash
- Public bathrooms and parking machines
- Markets (San Lorenzo, Sant’Ambrogio, food markets)
- Some smaller shops in less touristy areas
Recommended approach: Use cards for hotel, restaurants, museums, transport, larger purchases. Carry €100-€200 cash for daily incidentals. Refill cash from ATMs as needed (don’t carry more than €300-€400 in cash).
ATMs (Bancomats) in Florence
ATMs (called “bancomats” in Italian) are everywhere in Florence’s historic center. Use bank-owned ATMs (UniCredit, Intesa Sanpaolo, BPER, Monte dei Paschi di Siena) for the best exchange rates. Avoid Euronet and other independent ATM operators—they charge inflated fees.
How to Use ATMs in Florence
- Insert your card and follow the on-screen prompts (most machines offer English).
- If asked, “Charge in euros” or “decline conversion”—NEVER accept “Dynamic Currency Conversion” (where the ATM offers to charge you in your home currency). DCC always uses inflated exchange rates and can cost you 5-7% extra.
- Choose the amount in euros. Withdraw enough to minimize transaction fees (€100-€300 typical).
- Take your card immediately. Italian ATMs don’t dispense cash and cards in the same step; some return the card before the cash.
ATM Fees
Two layers of fees apply:
- Italian bank fee: €2-€6 per withdrawal (depends on which bank’s ATM you use). UniCredit and Intesa Sanpaolo are typical; some smaller banks charge less.
- Your bank’s fee: Varies by your home bank. US travelers: many credit unions and online banks (Schwab, Charles Schwab, Capital One 360) reimburse all ATM fees worldwide. Major banks (Chase, Bank of America) typically charge $5-$10 per withdrawal plus 3% foreign transaction fee.
Best strategy: Use a bank with no foreign ATM fees (Schwab, Capital One 360, Charles Schwab Investor Checking) for free worldwide withdrawals. Withdraw larger amounts less frequently to minimize fees.
Credit and Debit Cards
Visa and Mastercard are accepted virtually everywhere. American Express is accepted by most upscale hotels and restaurants but rejected by some smaller venues (the merchant fee is higher). Discover is accepted at very few places.
Foreign transaction fees: Avoid cards that charge 3% foreign transaction fees. Better choices include:
- No-foreign-transaction-fee credit cards: Chase Sapphire Preferred, Capital One Venture, Bank of America Travel Rewards, Citi Premier. These charge 0% fees on international purchases.
- Travel cards with rewards: Some cards even give bonus points on international travel.
- Avoid: Standard credit cards from your home bank that charge 3% foreign transaction fees—this adds €30 to a €1,000 trip.
How to Use Cards in Florence
- Contactless (tap-to-pay): Universal in Florence. Apple Pay, Google Pay, and contactless cards work at most terminals.
- Chip-and-PIN: Most card transactions use chip-and-PIN. If your card is chip-and-signature, you may have problems at automated kiosks (parking, train stations); seek manned counters.
- “Charge in euros”: When asked at a card terminal, always say euros. Never accept Dynamic Currency Conversion (DCC) where the merchant offers to charge in your home currency. DCC uses inflated exchange rates and costs 5-7% extra.
- Tip on cards: If you want to tip, leave cash. Italian terminals don’t usually have a tip line; you can’t add a tip to the card payment.
- Protect your PIN: Cover the keypad. Watch for skimmer devices on ATMs.
Currency Exchange
Avoid currency exchange offices (“Cambio”) in tourist areas—they charge 5-10% commissions and offer poor exchange rates. The best exchange rates come from:
- ATMs: Bank exchange rate plus a flat fee. Best overall.
- Credit card purchases: Bank exchange rate (slightly less favorable than ATMs but no per-transaction fee). Best for purchases.
- Wise (formerly TransferWise) or Revolut prepaid card: Excellent rates with no foreign exchange fees. Reload before traveling.
If you must exchange cash: airports have the worst rates; banks (open weekday mornings) offer better rates than tourist exchange offices. Don’t exchange large amounts.
VAT Refund (For Non-EU Residents)
Non-EU visitors can claim a VAT refund (Italian “tax-free shopping”) on purchases over €154.94 from a single store on a single day. Italy’s standard VAT (IVA) is 22%; the refund varies between 11-14% after processing fees.
How to Claim Your VAT Refund
- At purchase: Spend over €154.94 at a participating store. Show your passport or non-EU ID. The store provides a tax-free form (Global Blue, Premier Tax Free, Innova Tax Free are the main agencies).
- At airport (Florence Peretola or Pisa): Before checking baggage, take the form to customs. Customs stamps the form (validation). For purchases over €5,000, you may need to show the items in unused condition.
- Refund options: Cash refund at the airport refund counter (instant, lower amount due to fees), or send the stamped form to the agency for credit card refund (takes 4-8 weeks, slightly higher refund amount).
Tips: Allow extra airport time (1-2 hours for VAT processing). For small purchases, the paperwork may not be worth it—calculate the refund vs. the time required.
Tipping in Florence
Italian service is included by law in restaurants (“servizio compreso”). Tipping is not expected and may even confuse staff if overdone. Best practices:
- Restaurants: Round up by €1-€5 for good service, more for exceptional service. Don’t tip 15-20% as you would in the US.
- Bars and cafes: Round up to nearest €0.50-€1 (€2.50 for €2.30 espresso, €5.00 for €4.50 cocktail). Standing at the bar requires no tip.
- Hotels: €1-€2 per bag for porters; €1-€2 daily for housekeeping; €2-€5 for concierge service if they secure a difficult reservation or recommendation.
- Taxis: Round up to nearest euro (€10 for €8.50 fare). For longer trips, 5-10% is generous.
- Tour guides: €5-€10 per person for excellent guide; €10-€20 for private tours.
- Spas, services: 10% if you wish.
Watch for “coperto”: Italian restaurants charge a “coperto” (cover charge) of €1-€5 per person—a per-seat fee independent of service charge. This is normal and not a tip; it’s the bread/setup charge. Some restaurants also add “servizio” (10-15%) on top, which may or may not be a tip depending on whether it’s labeled “incluso” (included).
Daily Budget Estimates
| Budget Level | Daily Total (excluding accommodation) |
|---|---|
| Backpacker | €40-60 (hostel meals, basic food, walking, public transport) |
| Budget traveler | €60-90 (mid-range trattorias, gelato, occasional museum, public transport) |
| Mid-range | €100-180 (good restaurants, museums, taxis, drinks, gelato) |
| Comfortable | €180-300 (fine dining, all attractions, taxis, cocktails, shopping) |
| Luxury | €300-500+ (Michelin-starred dining, private tours, premium shopping) |
Specific costs to plan for: museum tickets €15-25 each (Uffizi €25, Accademia €16, Pitti €20+), aperitivo €10-15 with food, sit-down lunch €15-30 per person, three-course dinner €30-60 per person, taxi €10-15 within historic center, gelato €3-5, espresso at bar €1.50.
Money Safety
- Pickpockets: Florence’s main money risk. Keep wallets in front pockets, bags zipped and worn in front in crowds. Avoid showing large amounts of cash. Watch for distracting tactics around tourist areas.
- Skimmer devices: Inspect ATM card slots before inserting your card. If anything seems loose or attached, use a different ATM.
- Fake police: If “police” approach asking to inspect your wallet, ask for credentials. Real Italian police never need to inspect a tourist’s wallet on the spot.
- Counterfeits: Rare but possible. €50 and €100 notes are most commonly counterfeited; check holographic strip and watermarks if you receive notes from non-bank sources.
- Receipt scams: Always check restaurant bills carefully. Common errors: charging for items not ordered, “discrepancies” on totals, unauthorized “service” charges. Calmly point out errors.
Frequently Asked Questions
What currency is used in Florence?
The euro (€). Italy adopted the euro in 1999 (cash from 2002). Banknotes: €5, €10, €20, €50, €100, €200. Coins: €2, €1, 50¢, 20¢, 10¢, 5¢, 2¢, 1¢. Italy stopped issuing 1¢ and 2¢ coins in 2018; vendors round to nearest 5¢ on cash transactions.
Should I exchange money before going to Florence?
No. Italian ATMs offer the best exchange rates. Bring a no-foreign-fee debit card (or a card that reimburses ATM fees) and withdraw euros from ATMs in Florence. €50-€100 in advance for arrival expenses is reasonable but not necessary if your card works.
Are credit cards accepted in Florence?
Yes, almost universally. Visa and Mastercard at every restaurant, hotel, museum, taxi. Amex at most upscale venues. Italian law requires merchants accept cards for purchases over €5. Contactless tap-to-pay is universal. Apple Pay and Google Pay both work.
How much cash should I bring to Florence?
€50-€100 in cash for arrival is plenty. Refill from ATMs as needed throughout your trip; carry €100-€200 daily for incidentals (tips, small purchases, markets, public bathrooms). Don’t bring more than €500 cash for security reasons.
What’s the best card to use in Florence?
For ATM withdrawals: a debit card from a bank with no foreign ATM fees (Schwab, Capital One 360). For purchases: a credit card with no foreign transaction fees (Chase Sapphire Preferred, Capital One Venture, Citi Premier). Avoid using your everyday card if it charges 3% foreign transaction fees.
What is “Dynamic Currency Conversion” and why should I avoid it?
DCC is when an ATM, restaurant, or shop offers to charge you in your home currency instead of euros. It uses inflated exchange rates and costs 5-7% extra. Always say “no” or “charge in euros.” Your bank’s exchange rate is always better than the merchant’s DCC rate.
How does the VAT refund work?
Non-EU residents can claim a refund of approximately 14% on Italian purchases over €154.94 from a single store. At the store, request a tax-free form (show your passport). At Florence airport, get the form stamped by customs before checking luggage. Then return for a cash refund (instant) or a credit card refund (4-8 weeks). See our Florence shopping guide.
Should I tip in Florence?
Service is included by law. Tipping is not expected. Round up by €1-€5 for good service in restaurants; round up to nearest euro on taxis. Don’t tip 15-20% as in the US—it’s not the Italian custom. See our tipping in Florence guide.
Are there ATMs at Florence airport?
Yes. Florence Peretola Airport has multiple ATMs in both arrivals and departures. Pisa Airport (the larger nearby airport for Tuscany) also has ATMs. Avoid the airport currency exchange (“cambio”) booths—they offer poor rates.
