Travellers checks in US dollar amounts can be difficult to deal with. Banks in Italy will often charge more money to cash them and merchants may get creative with what they consider a fair rate of conversion. Either way you can lose. On the other hand, ATMs offer the best deal. Whether you use your bank card or a Visa, MasterCard or Amex/Optima with a PIN, the actual rate of exchange is often much more favorable than those posted in banks.
Converting about $100 before you go is a good idea. You can exchange dollars into foreign currency while in the US at any commercial bank. Be careful of currency exchange shops in any country. The rate you get is often lower, and many of these shops charge high commissions and handling fees as well.
Read the signs carefully and ask before any transaction what other charges may exist. By all means follow this procedure with banks as well; since everyone competes, charges and rates vary from place to place.
A general rule of thumb is that rates are usually the worst in the most heavily trafficked tourist areas. Often better deals are to be had in the banks outside congested areas. If there are no signs outside a bank offering exchange, Cambio in Italian, it is still OK to go in and investigate.
Getting in the bank, that is through the door, is tricky. A) Open the first door. B) Step in. C) WAIT... for the first door to close before attempting to open the next. A green light tells you it's okay to enter. Repeat this on your way out. It gets more difficult when trying to fit your whole family in the tiny space between the doors. Banks, like most businesses in Italy, keep peculiar hours. They usually open in the morning, close around noon or one, reopen after three, and close soon after. Do your banking early. Have your passport handy as it is required when exchanging money.
If you plan to buy some of the wonderful bargains in Italy, shop wisely for your money first. It may end up being the best bargain you get. One last word about banks: if you are allergic to smoke you may be in for a surprise. Tellers often smoke and it is not uncommon to have a teller poring over your paperwork with a three inch ash precariously dangling from a lit cigarette. To their credit, I have never had one of those extra long embers validate my passport.
