Bologna Inside - Second Edition

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TABLE OF CONTENTS

2 > ESSENTIAL SERVICES

BANKING

La banca (bank) is actually an Italian invention - the world’s first check was issued in Tuscany where the Medici family was already running an international banking operation in the 14th century. Indeed, Italian banks have been charging customers for their services ever since. Forget about beating the system, you pay the bank to keep your money, sometimes more than they pay you in interest. There’s a charge for almost everything, including the postage to send statements. Ask about the fees for online banking, automatic bill pay, checks, credit and debit cards. If someone you know is a customer in good standing at a particular bank (keep in mind it is the specific branch that counts), you might consider using the personal connection as leverage for negotiating. To open a bank account, you will first need a codice fiscale, see Chapter 1: Plugging In. Banks are open Monday-Friday 8:20-13:20 and 14:35-16:05; closed weekends and holidays.

There are also some branchless banks, such as Banca Mediolanum, which charge lower fees by offering services via internet, telephone, teletex and personal consultants. For more information see: www.bancamediolanum.it.

CHECKS AND WIRE TRANSFERS

If you are paid by assegno (check) and don’t have a bank account, cash it at the bank of issue. Checks drawn on banks other than your own are called fuori piazza. Note that fuori piazza checks may take up to 12 business days to clear. Use blue or black ink and write non trasferibile (non-transferable) on the check.

While checks are mostly for consumer use, most other business is done using a bonifico bancario (wire transfer). Employers prefer this payment method, so you will probably be asked for your account number, national routing number (ABI) and branch codes (CAB). Your bank will give you this information when you open an account. For EU wire transfers you need to know the IBAN number; US transfers use a SWIFT code.

DEBIT CARDS

Bancomat (debit cards) are convenient and worth the fee. They can be used to withdraw money, recharge your cell phone and pay for goods and services. There is no charge to use your bancomat to buy goods in Italy, but ask your bank about fees for using it in other countries. You may be charged a fee if you withdraw cash from a machine that does not belong to your bank.

CREDIT CARDS

Although Italy is largely a cash-based consumer economy, most shops and restaurants accept carte di credito (credit cards). It is still a good idea to ask before arriving at the register. Credit cards are arranged through the bank and there is usually an annual fee. Italian credit cards are tied to your bank account, meaning that at the end of the month, your card is paid in full. You can therefore think of your Italian credit card as a shortterm loan that comes due in 30 days.

LOANS

If you are employed, you can ask for a prestito (loan) of up to 25,000 euro, paid back in fixed monthly installments from 12 to 60 months. You may canalizzare lo stipendio, that is, have loan payments deducted from your bank account after payday. If you are selfemployed, you can ask for a fido or a facoltà di scoperto, a fixed amount at a fixed rate decided by the bank. You will be asked for your income tax records and other proof of assets. As with getting a loan anywhere, having good personal connections can affect whether or not you get a loan and for how much. Ask to speak with the branch director about the interest rate offered. With some negotiation, you may be able to lower the rate a couple of points.

It is easy to mix up commas and decimal points. Here 5,900 is written 5.900 and the percentage 5.9 % is written 5,9 %. You can change the international setting in your computer’s office package to Italian and the comma-decimal function should adjust. Some numbers are handwritten slightly differently as well. The number one is written like a droopy seven and the seven has its stem crossed. Don’t write your two with a loop because it could be mistaken for the crossed seven.

Andrea Vogt