What You Might Not Know About the Cash in Your Wallet

Today's consumers are less likely to use physical cash to pay for their purchases and bills with debit cards, credit cards and electronic transfers. However, a report from the Federal Reserve Bank of San Francisco found that 93% of U.S. consumers say they're still using some cash. It also found that Americans keep an average of $73 in currency in their wallets, pockets and purses. Let's look at the role paper currency has — and still plays — in our lives.

6 Fascinating Facts

The way cash has circulated in the United States has evolved over hundreds of years. Here are six interesting facts about U.S. currency.

1. Denominations have gotten getting smaller. Believe it or not, there used to be $500, $1,000, $5,000 and even $10,000 bills that were mostly used for large transactions between banks, the public and the federal government. According to the Bureau of Engraving and Printing (BEP), the federal government announced in 1969 that these denominations "would be discontinued immediately due to lack of use." They were issued until 1969, but actually last printed in 1945. The BEP says that these notes may still be found in circulation today. And they're still legal although most are in the hands of collectors.

2. U.S. presidents dominate, but there are a couple exceptions. George Washington is on the $1 bill, Thomas Jefferson is on the $2, Abraham Lincoln is on the $5, Andrew Jackson is on the $20 and Ulysses Grant is on the $50. But you can find non-presidents on the $10 bill (the 1^st Secretary of the Treasury, Alexander Hamilton) and the $100 bill (statesman Benjamin Franklin). Abolitionist Harriet Tubman is scheduled to appear on the $20 bill, reportedly by 2030.

3. Some businesses no longer accept cash. "There is no federal law that requires a private business, person, or organization to accept currency or coins as payment for goods or services," the U.S. Currency Education Program explains. In recent years, more businesses have moved toward cashless transactions and now only accept debit or credit cards. Reasons for not accepting cash vary, but some businesses want to minimize the risks of theft and robbery, speed up the checkout process and cut down on the potential spread of disease using paper money.

Although private businesses may generally be free to develop their own policies, there may be state or local laws that require them to accept cash. For example, Massachusetts, New Jersey, Rhode Island and Colorado have passed laws that ban stores from refusing to accept currency.

4. Regular redesigns discourage counterfeiting. The first person to take on counterfeiting was Benjamin Franklin in 1739 when he used his printing firm in Philadelphia to produce notes with nature prints. They featured raised patterns cast from actual leaves. One of the reasons that U.S. paper money was initially printed in green (starting in the 1860s), was to prevent counterfeiting. In those days, cameras could only produce black-and-white images, so making believable copies of "greenbacks" was difficult.

Today's paper currency features several colors and security features. For example, the $100 bill was redesigned in 2013 with images that include a blue 3-D security ribbon and a color-changing bell in an inkwell. The $5 bill was redesigned in 2008 with light purple and gray. It includes an embedded security thread that glows blue when illuminated by UV light. Also, two watermarks that are visible from both sides when held up to light were added to the $5 note.

5. The U.S. Secret Service protects presidents — and currency. The Secret Service was actually created in 1865 to crush "rampant counterfeiting" and stabilize the country's still-young financial system. It wasn't until 1901, after the assassination of President McKinley, that the Secret Service was tasked with the full-time protection of the president. Today, the Secret Service is the primary agency that investigates counterfeiting by using both advanced technology and traditional methods.

6. Some bills are considered "unfit" to circulate. The BEP considers currency unfit or mutilated if "one-half or less of the original note remains, or its condition is such that its value is questionable." If you have an entire bill that's simply ripped, you can tape it back together. But if a bill has more significant damage from tearing, fire, water or other causes, you may be able to redeem it for a new bill. Click here for the process.

Future of Currency

Whether the country will become cashless at some point is often debated. The convenience and security of electronic payments is undeniable. And many surveys and studies show that cashless payments continue to increase and younger adults are more likely to use them exclusively. But a significant portion of Americans still rely on cold hard cash — particularly lower-income people — and some prefer it. So it appears that at least for now, the dollar bills in your wallet aren't likely to disappear anytime soon.