This post contains affiliate linksWe arrived in Italy at the beginning of our “big move” with roughly €5 between us, grabbed from the “left over travel money bag” on our way out the door to the airport. Our intention had been to hit the first ATM we saw at the airport, but that somehow didn’t happen. There should have been some indication that we were in trouble when none of our cards would work at the ticket machine at Malpensa, but going to the desk worked, so we knew the cards were “active.” They just didn’t seem to like machines. Most of our cards had “chips,” but back then the US was “chip and sign,” whereas Europe was by and large “chip and pin.”
Anyway, by the time we got to Parma, exhausted from the international flight and two trains, I went to the ATM in another attempt to get some cash. Nothing worked. I had a Paypal debit card and two bank debit cards, and nada (or should I say niente)!
Later, I called the banks and they fixed everything. But our first hours in what would become our home were, let’s say, more stressful than we’d hoped. (Understatement fully intended.)
That was 2016. A lot has changed since then — our cards have long since been sorted, and the banking landscape for Americans in Europe has shifted considerably. But the underlying problem is still very much alive, and in some ways it has gotten worse. After a decade of navigating this on the ground, here is what I know.
The Cards Americans Bring (And Why Some No Longer Work)
Visa and Mastercard are the most widely accepted card networks in Europe. If you have a credit card on either of those networks with a chip (which virtually all American cards now have), you will generally be fine at merchants. Some will take American Express or even Diner’s Club, but Discover Cards are pretty much unknown in Europe.
Visa and Mastercard debit cards should also pose no great problem. However, the Discover Card issue has blindsided a lot of Americans recently (this one included!). Capital One Bank, which had been an excellent option for international travelers because of its “no foreign transaction fee” policy, switched all of its bank account debit cards from the Mastercard network to the Discover network. Literally the first week that the new Discover cards were active, online chats started exploding with “how do I get cash with this card?”. It is not impossible. If an ATM has a Diners Card logo apparently it’s on the same network, but there is not ONE in our town, for example. Even Capital One’s own help pages now suggest researching acceptance before travel and bringing a backup payment method.
If your Capital One debit card is your primary banking card, please read the rest of this post carefully, because you have options, even if you are just an international traveler, and not relocating to Europe!
Apple Pay/Google Pay
These days, most merchants that take credit/debit cards will also accept Apple Pay and Google Pay. That said, the card attached to these payment methods matters. If a store doesn’t take Discover, a Discover Card payment will not be accepted through Apple Pay.
Three Bank Accounts Worth Knowing About
Here are three banking options you should consider if you are moving to Europe. The first is even very useful for travelers.
Wise (formerly TransferWise)
I would actually recommend Wise as a great travel “tool” for any traveler. You don’t need to use your personal banking debit card, and while Wise has “transaction fees,” they are not as expensive as you might think, and will cost you less usually than using your American debit or credit cards, even if they purport to have no foreign transaction fees.
The origin story of Wise is pretty interesting. A couple of Estonian friends living in London were dealing frequently with converting money from British pounds and Euros. The transfer fees were eating a lot of their hard-earned money, so after realizing that one of them needed to send money to Estonia to pay bills there, and one needed to send British Pounds to the UK to pay bills there, they realized that they could say all of those fees by simply using each other for the transfers. Their names were Kristo Käärmann and Taavet Hinrikus. Kristo would give Taavet Pounds, and Taavet would transfer that amount of Euros from his Euro account to Kristo’s Euro account in Estonia. They would look in the paper that day and get the “mid-market” exchange rate, and get the best exchange anywhere in the world — just because they weren’t going through international banking exchanges. Pounds never left the UK, and Euros never left the Eurozone. Brilliant.
They eventually launched this as a business, and ultimately became the first tech billionaires in Estonia!
What this means practically is that Wise functions as a multi-currency account for you. You might put US Dollars in the account, and when you pay for something in Euros, they charge you a small fee, and give you the best exchange rate you’ll get anywhere. We’ve compared using our “no transaction fee” debit cards in the US with paying Wise’s small fee and getting a better exchange rate, and in our case, Wise always wins.
I have also paid virtual assistants in the Philippines, Croatia, and elsewhere through Wise. The fees are better than Paypal, and my VAs, after checking it out for themselves, were so happy that they were actually saving money by using Wise.
One important caveat: Wise is not a bank. It is not FDIC insured. We don’t keep large balances in Wise, but for day-to-day transactions and international transfers it’s great. You can get a Wise account here.
Revolut
Revolut is similar to Wise in its core function as a multi-currency account with a debit card that works well in Europe. Where it differs for people actually living in Italy is that Revolut can hold an Italian IBAN — an Italian bank account number in the European standard format — which means you can make Italian bank transfers and, crucially, pay your taxes through the F24 system. This is significant if you are not just visiting, but actually living here.
You can get a Revolut account here.
N26
N26 is a German-founded bank with a full banking license operating throughout Europe. Before I had Italian citizenship and easier access to Italian banking, N26 was my European bank of preference. It offers an Italian IBAN option and functions as a proper bank account in a way that the other two do not always manage. As of this writing, N26 does not have access to the Italian F24 taxation system, which makes it less attractive than Revolut overall. You can sign up for N26 here.
Quick Summary
So here is the quick summary of what these products are:
If you are visiting Italy or Europe:
- Bring a Visa or Mastercard credit card with no foreign transaction fees
- Get a Wise account and debit card before you leave home
- Carry a reasonable amount of cash for small purchases and emergencies
- If your primary debit card is on the Discover or Amex network, do not count on it as your only ATM option
If you are moving to Italy:
- Start with Wise for day-to-day spending and international transfers
- Look at Revolut if Italian tax payments are a factor
- Consider N26 if you want the security of a fully licensed European bank account
- Know that eventually you will probably want an actual Italian bank account, which is its own adventure — but you will at least have backup options while you navigate the bureaucracy.
Hope this helps!
