Thanks to ATMs and credit cards that are accepted all over the world, it’s now possible to travel overseas without carrying gobs of cash or traveler’s checks. But to ensure that your money works for you and not against you while you’re globetrotting, follow these tips and prevent bank fees from taking a bite out of your travel budget.

Open an Account at a Major Bank (And Tell Them You’re Traveling Abroad)

First things first, open an account at one of several major banks that has partnership agreements with overseas banks, so you don’t have to pay ATM fees when you withdraw money. For example, if you have a Bank of America account and ATM card, you can use ATMs at Scotiabank in Canada, BNP Paribas in France, and Santander Serfin in Mexico without paying fees.

Keep in mind that if you have a major bank account and use a non-partner ATM, you’ll be charged an ATM out-of-network fee (typically $5) by your bank and a bank ATM fee by the bank abroad. Community banks, credit unions, and online banks don’t charge the ATM out-of-network fee, however. Some banks, such as most online banks, automatically reimburse you if you are charged bank ATM fees.

Also, prior to heading abroad, be sure to call your banks and let them know of your travel plans. If a charge for a seafood dinner in Jamaica suddenly shows up, your bank may suspect fraud and freeze your account until they can confirm that it was a legitimate transaction. And as a precaution, take at least two forms of payment (e.g., a debit card and credit card) with you when you travel, in case one isn’t accepted or gets lost or stolen while you’re away.

Get a Credit Card That Doesn’t Charge a Foreign Exchange Fee

Both Visa and Mastercard charge a percentage fee on all foreign transactions, in addition to the one or two percent that your bank charges. This fee of approximately 3% can add up quickly, and generally applies to credit, debit, and ATM transactions. The only way to avoid it is to get a Capital One, Chase, or Discover credit card, which waive the foreign exchange fees.

Get the Best Exchange Rate

For the best exchange rates, make purchases with your debit card or credit card. The exchange rates that credit/debit cards offer are comparable to what you see published in major newspapers.

Withdrawing money at an ATM is the second best option. Whatever you do, don’t exchange money at the airport because the rates are terrible and they charge high fees. Instead, exchange cash at a local bank prior to your trip.

Before You Go

In addition to opening a bank account at a major bank, calling your bank to let them know that you’re hitting the road, and exchanging some cash for your “just in case” stash, be sure to do the following things before your trip to get your finances in order:

• Find out if ATMs are easy to find at your destination
• Determine if the ATMs in the country you’re visiting will accept the cards you have
• Find out if credit cards are widely accepted
• Write your card numbers and your bank’s emergency telephone numbers in case they get lost or stolen
• Set up automatic bill payment or sign up for online banking so you can make sure that your bills are paid (and late fees aren’t accumulating) while you’re away

So, there you have it. Bank fees can add up quickly over the course of your trip, especially if you’re embarking on an extended journey. With some advance preparation, however, you can keep your finances in order and ensure that there’s more money in your pocket for seafood dinners, pina coladas, and all of those other delightful things that only money can buy.

via Jannisri

Airport lounges are seemingly out of reach for economy class flyers.  These road warriors usually opt for the least worn out chair at their connecting flight’s gate or perhaps a table at the nearest food court.  Without a corporate expense account or trust fund, they think, there is little hope of sitting in a plush chair in a quiet lounge surfing the internet and munching on complimentary snacks.

But there are several ways to access these lounges without springing for a first-class ticket.  In fact, with credit cards, club memberships and a variety of pay-in lounges throughout the world, it is now easier than ever to spend your layover in a lounge.

Here are some ideas for getting both economy class airfares and a first-class layover experience.

Priority Pass

Priority Pass is a service that offers access to 600 lounges worldwide for an annual membership fee.  Most major airports around the world have at least one lounge that is part of the Priority Pass network.

The company has several membership levels.  For $99 annually, members earn the right to access the lounges in the Priority Pass network for $27 per visit.  For $399, members receive free unlimited access to any of the 600 clubs.  There is also a $249 level where members get 10 free visits per year and additional visits at the $27 per entry rate.  Though $399 is a bit pricey, frequent flyers can take advantage of the access regularly and the membership fee is still less than the cost of most first-class upgrades.  The value of the lower membership levels is debatable, especially since the number of public pay-in lounges (see below) is growing.

MJTR, Flickr

Credit Cards

Premium credit cards can also offer lounge access.  The most famous of these (because of its aggressive advertising campaign) is the American Express Platinum card.  The annual fee of $450 is steep, but it qualifies card-holders for a variety of perks, one of which is entry to clubs operated by American Airlines, Delta and Continental.  The catch: you have to fly one of these airlines in order to enter their lounge.  However, if you usually fly one of these carriers and also plan to use the card to earn airline miles and take advantage of AmEx’s outstanding customer service, this is a reasonable option.

The Visa Black card has similar miles-earning potential and perks.  The $499 annual fee includes a Priority Pass membership.  However, after the first two visits, the admission fee is $27, making it less potent than Platinum when it comes to lounge access.

Plaza Premium Lounge

Pay-in Lounges

For casual travelers who don’t think the above-mentioned options are reasonable, the proliferation of public pay-in lounges is a welcome trend .  Sure, they might not carry the elitist vibe of airline clubs, but they offer many of the same amenities, and, in some cases, more luxury than traditional clubs.  The idea is already successful in East and South Asia, where Plaza Premium lounges can be found in most major airports.  Prices start at about $25 for a two hour stay complete with wi-fi, snacks, a comfortable and quiet atmosphere, and, the kicker, access to private showers.  Plaza Premium also has locations in Toronto and Vancouver, but none in the US as of this writing.

US-based pay-in options include The Lounge at JFK ($40 entry fee, unless you are a Priority Pass member) and Relax Lounge at LAX ($10 for a one hour stay and $25 for three hours.

Capsule Hotels

A company called Yotel recently opened locations in England and the Netherlands.  Their novel approach to airport hospitality is half-inspired by Japanese capsule hotels and a half by first class airline cabins.  The small Yotel rooms include a bed, television and shower and plenty of modern chic.  Rooms can be booked by the hour or for the entire night.  Though no locations are open in the US, Yotel is currently in talks with several airports and industry insiders claim that it will fill a valid niche in between airport hotels and lounges and arguably will offer better value than both.

Annual Airline Club Membership

Airline club membership is quite expensive (Delta from $400, American from $400, for flyers with little or no frequent flyer status).  These legacy airlines also offer one time entry into their clubs for a $50 fee.  If you normally rely on one airline, the annual pass can be a good deal, because you can use airline miles to purchase yearly membership and flyers who gain higher levels of frequent flyer status often receive significant discounts on these yearly passes.  In addition, renewal fees are usually less expensive than the fee for the initial year of membership.

Spas

Space, quiet and the opportunity for some serious relaxation are reasons you would try to gain entry to an airport lounge.  However, lounges are not the only airport venues that offer a chance to relax.  Xpress Spa is a chain of full service spas located in airports around the US.  What could be more relaxing than a massage or facial in the quiet, designer surroundings of a spa?  Locations are in many major airports in the US, including JFK, SFO, Atlanta Hartsfield Jackson, Boston Logan, and Orlando International.  A brief, seated massage is in the same price range as a stay in an airport lounge.

Of course, if all else fails, there is always the option of finding a restaurant with booths on your concourse, ordering an appetizer and zoning out with your iPod.

via Flickr: Andres Rueda

Earning frequent flyer miles is one of the perks of traveling regularly.  However, the effort spent to get those miles, through an airline’s loyalty program or by using a credit card with a miles rewards program, is often disproportionate to the reward.  Average airline credit cards give you one mile (sometimes known as a point) per dollar.  You’d have to spend $25,000 in order to earn a free domestic flight.  That is beyond what the casual consumer is wiling to put on their charge card at any one time.

But not all miles-earning credit cards are equal.  Some award multiple miles per dollar, but are restrictive about when the miles can be used.  Others have high annual fees, but offer a higher miles-per-dollar-spent ratio and other perks like airport lounge access and travel insurance.

Which card is the most useful?  It depends on the kind of travel that a person plans to do and on their spending habits.  With that in mind, here are some of the best credit cards for earning airline miles in 2010.

Basic Credit Cards with No Annual Fees

Miles by Discover Card matches the industry standard of 1 mile for every $1 spent.  But the extra perks offered by Discover, especially during the first year of use, make it a worthwhile choice for casual miles-collectors.  By making a purchase at least once during the month, users qualify to receive an additional 1,000 miles.  That’s a total of 12,000 additional miles during the first year (you are about half-way to a free round-trip flight).  Like many other Discover Cards, qualified cardholders get a 0% APR for the first six months that their account is open.

Blue Sky from American Express is another basic credit card with no annual fee.  New Blue Sky cardholders will enjoy six months of 0% interest.  The AmEx points system works slightly differently than Discover’s, with the first 7,500 points qualifying card-holders for $100 in credit with an airline, hotel, resort, or car rental agency.  Features like ATM access, a global customer service hotline and hotel room guarantees give the Blue Sky an impressive list of extras, especially considering that it is a no-fee card.

Premium Frequent Flyer Cards – These cards have high annual fees but also high dollars-to-miles ratios and extra perks like airport club access.

The American Express Platinum Charge Card is the most heavily promoted card in this market.  Its $450 annual fee seems quite steep, but for card-holders who actually take advantage of all the perks and miles earning potential, it can still be considered a good deal.  The card has a standard $1 for 1 point ratio, but that climbs to 4 points-per-dollar when shopping with American Express “Bonus Points Mall” affiliates.  Industry-leading extras include access to select premium class airport lounges around the world (for the cardholder plus up to two guests).  This access is even available to cardholders who are flying economy class.  American Express also offers concierge service to Platinum members who need help with travel plans or reservations at hotels and restaurants.

The American Express Gold Card ($125 per year fee is waived for the first year) tones down the extras compared the Platinum option, but still offers double points for certain online purchases, a global customer service hotline and worldwide ATM access.

Visa’s exclusive Black Card is their answer AmEx’s high-end cards.  Black has a $495 annual fee and essentially offers the same perks as its platinum counterpart: lounge access (via Priority Pass) and great miles-earning potential.  The Black also offers travel accident insurance coverage up to $250,000, $1,500 for trip cancellation insurance and lost baggage insurance up to $300.

Miles Cards for Specific Airlines – These cards can be the most useful option, especially if you are already a member of a specific airline’s loyalty program.

Delta SkyMiles Credit Card by American Express comes in two varieties.  The Platinum SkyMiles card costs $150 per year, while its Gold counterpart is $95 (with the first year’s fee waived).  Users earn an impressive 20,000 miles with their first purchase using either card (that’s $200 off the price of a flight on Delta or on one of the allied airlines that accept Delta frequent flyer miles).  Card-holders also receive an annual certificate good towards a companion ticket on any flight they book using their SkyMiles card.  The Gold Card awards a $99 discount, while the Platinum bestows one free companion ticket.

The JetBlue American Express Card has the lowest fee of any airline miles credit card at only $40 per year.  Card holders earn the standard 1 point-per-dollar, but that is bumped up to 8 points per dollar when making purchases using the card on jetblue.com.  Also, the card allows members to take advantage of JetBlue’s low prices by trading in miles once they reach the 10,000 mile mark.  Most other cards require users to have at least 25,000 miles before redeeming.

The Virgin Atlantic Black Card stands out by offering 1.5 miles for every dollar spent, as opposed to the usual 1-to-1 ratio offered by other cards.  In addition, flyers are awarded 20,000 bonus points with their first purchase and 3 points per dollar spent on Virgin Atlantic flights, services or merchandise.

The Citi AAdvantage Card is a reasonable option for people who fly the large legacy carrier frequently.  Citi awards cardholders who spend $750 in their first four months of membership with 25,000 free miles (enough for a round-trip ticket).  Miles are always good on flights to anywhere that AA flies.  The annual membership fee is $85 per year, which is slightly lower than similar cards offered by other legacy carriers.

The Chase Southwest Airlines Rapid Rewards Card is priced even lower than the AAdvanatge, with an annual fee of $59.  Chase offers double miles (2 miles per dollar) for all Southwest purchases.

It is imperative that cardholders read the fine print of both the frequent flyer program of their favorite airline and their miles-earning credit cards.  Also, the miles are not really a money-saver if you carry a balance from month to month on a card that does not offer a 0% introductory APR.  The money paid to interest will far exceed the money saved by earning frequent flyer miles since cards general have at least a 9% APR, with most around 13%-19%.  However, for frequent flyers who are disciplined enough and also belong to a specific airline’s frequent flyer (or loyalty) program, an airline credit card can lead to significant savings.