I just returned from a trip to Spain (from the US). I admit, I planned poorly, in terms of researching what I'd do for spending. When I went to change my first $100 at the airport kiosk, I got about $65 Euros, which was awful considering the exchange rate is $1.12 per Euro. In Spain I found that every cab and store accepted credit cards. I used the card as much as I could, with tips being the main use of the cash. I just checked my credit card statement on line and found it used the exact exchange rate of the day, and added a 1% fee. It basically gave me a cost of $1.13 per Euro. I know the OP asked about Italy, and there's a chance other countries are different than what I found. I'd also call your credit card issuer to confirm the exchange fee, but even 5% was better than what I got at the exchange booth. The booths in Spain gave similar bad deals. A bad exchange, plus a fee.

I just returned from a trip to Spain (from the US). I admit, I planned poorly, in terms of researching what I'd do for spending. When I went to change my first $100 at the airport kiosk, I got about $65 Euros, which was awful considering the exchange rate is $1.12 per Euro. In Spain I found that every cab and store accepted credit cards. I used the card as much as I could, with tips being the main use of the cash. I just checked my credit card statement on line and found it used the exact exchange rate of the day, and added a 1% fee. It basically gave me a cost of $1.13 per Euro. I know the OP asked about Italy, and there's a chance other countries are different than what I found. I'd also call your credit card issuer to confirm the exchange fee, but even 5% was better than what I got at the exchange booth. The booths in Spain gave similar bad deals. A bad exchange, plus a fee.

Edit - I just received a bill from another card I carry. The exchange rate was the same, the rate that day, but the fee added was 3%. I'd highly suggest contacting the card issuer and confirming the fees they charge.