Our fourth trip to Italy is coming up next month also. An ATM/Debit card used in Italy is the cheapest way for spending cash. Make sure you have two of them (one that you carry and one for your wife to carry) that way if you lose one or one gets stuck in the machine you will have a backup. You might also want to call your bank and increase the amount of cash you can take out per day and also let them know you will be using the card out of country. Most of the time though we use credit cards through out Europe (and the world) with no problems and it's always nice to accumulate those air miles! Be sure to get a no foreign fee card as the other poster suggested. I have two of these that I take, one is through Capital One and the other is a Chase Sapphire. Most of Europe has started using chip embedded cards and sometimes you will find a restaurant or small business that cannot accept anything but these. We encountered this in Patmos Greece but luckily the restaurant owner accepted my US currency after trying all five of my non-embedded credit cards. I have since called Chase and they sent me two new chip embedded cards free of charge.
Another good pointer is to take all your ATM, debit, credit cards and your passports and put them in a computer scanner or copying machine and make front and rear copies of them. Leave a copy with a friend or family member that you trust and maybe carry another copy in a very secure place. This way if you lose a card or heaven forbid your passport, you will have the card numbers and contact numbers on your cards to call the issuing company and you will also have proof of your passport if you have to apply for a new one at an embassy out of country. Use the next tip below and you should never have to worry about that happening, but it's always good to be more safe than not.
Italy is safe to travel in and the only thing you may have to worry about is pickpockets. We have traveled to over 50 countries and have never experienced a problem anywhere...I always take many precautions though. A better alternative to the money belt (with more space) is a hidden travel pouch. They are well made with two loops which your belt goes through. You then insert your cash, cards and passports inside this nylon zipped pouch and then shove the pouch (the man does) inside his pants. Very secure and non-recognizable. You can find these and other neat travel products at magellans.com.
Don't forget travel insurance in case anything unexpected happens with your trip or your health. The best rates can be found online at insuremytrip.com. You can compare companies and their products and add or subtract coverage which you may or may not need.
Italy will steal your heart and beckon your return. Have fun!
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