As of January 1st, credit cards are no longer a payment option in Vatican City. Seriously, the Vatican as it stands now is CASH ONLY.
No, there's no religious undertones to this move. In fact, the Vatican doesn't want this at all and would LOVE to accept your credit card, especially considering millions of tourists visit Vatican City staples like the Sistine Chapel and the Vatican Museums each year. (And thousands are currently there now...)
As it turns out, the Deutsche Bank Italia had it's authorization pulled by the Bank of Italy after it was revealed that the Bank never applied for authorization in the first place, which was a good 15 years ago. (This according to a report from latino.foxnews.com)
It's hard to undervalue the inconveniences this can cause for tourists, including ATM fees and the business of actually finding said ATM's. According to the report, the Vatican is rushing to fix the issue. While January may feel like a down time for vacations, by all accounts the Vatican was as busy as ever over the past week, causing a real issue for tourists and the local economy alike.
We'll keep fledging tourists posted on the issue, but if you plan on visiting the Vatican anytime soon remember to plan accordingly and pack traveler's checks. That or be sure to take advantage of the nearest ATM ahead of time before visiting Vatican City...