Local police arrested and charged the man, a 46-year-old believed to be from Israel, after he reportedly locked the currency exchange employee in her booth near the Rialto Bridge.
The man is reported to have been unhappy with the amount in euros he received in exchange for $100.
The ordeal lasted around half an hour, until the woman managed to call the police.
The woman was reported to be “upset and frightened”.
The suspect did not get his money back, according to local media.
The relationship between Venice and its visitors is often tense, with the lagoon city’s economy dependent on tourism but its residents increasingly frustrated with the crowding and chaos that comes with hosting 12 million tourists a year.