A new financial literacy survey reveals a "disturbing" lack of knowledge pertaining to personal finance among U.S. adults.

The 2012 Consumer Financial Literacy Survey, released in April, Financial Literacy Month, found that despite the recession, Americans still lack basic money skills. More than half of the 1,007 adults polled for the survey admit to not even having a household budget.

Also revealed in the findings:

• 33 percent, or more than 77 million Americans, do not pay all of their bills on time.
• 39 percent of Americans carry credit card debt from month to month.
• Only 59 percent of adults say they have savings -- a 5 percent decrease from last year.
• More than one in four adults say they are now spending more than last year.
• 42 percent of respondents give themselves ratings of C, D or F on their personal finance knowledge.

"This year's survey unveiled some disturbing trends, showing that a significant number of Americans are saving less, spending more and carrying credit card debt over from month-to-month, suggesting that the painful financial lessons of the past are quickly being forgotten," said Susan C. Keating, president and CEO of the National Foundation for Credit Counseling, in a statement released on the NFCC blog. "Coupled with the two in five adults who gave themselves a C, D or F on their knowledge of personal finance, the need for an increase in financial education becomes not only clear, but urgent."

The survey found that 55 percent of Americans now think it's acceptable to default on a mortgage if they can no longer afford the monthly payment, compared to 49 percent in 2011 and 46 percent in 2010.

This is the sixth year the NFCC has fielded a study to measure American adults' financial literacy. It did have a few bright spots. For instance, we're getting smarter about the need to be aware of credit scores. The survey shows that the percentage of adults who have ordered or received their credit score in the past 12 months has increased since 2011, and is now at 44 percent. That's an improvement, but still leaves a majority not knowing their credit score or credit report. At least we're aware of our ignorance. According to the survey, the main source of information about personal finance for Americans is their parents. According to the survey, though, still 4 out of 5 adults -- that's 80 percent -- say they could benefit from additional advice from a professional.

The Ethisphere Institute is dedicated to the creation, advancement and sharing of best practices in business ethics, corporate social responsibility, anti-corruption, and sustainability. This is the seventh year that the Institute has produced its annual list, and the first time Visa has earned a position on it since becoming a publicly-traded company in 2008.

"Visa is honored to be part of this group of companies who are committed to operating at the highest level of ethics," said Ellen Richey, Chief Enterprise Risk Officer of Visa Inc. "This recognition reflects the commitment of Visa's employees worldwide to the highest levels of ethical business practices and trust. Trust is critical to our business of enabling electronic commerce, and that's what we've done for more than 50 years."

Ethisphere uses a proprietary Ethics Quotient (EQ^TM) rating system to evaluate companies' performance in an objective, consistent and standardized way. The EQ framework consists of five core evaluation categories including ethics and compliance program; reputation, leadership and innovation; governance; corporate citizenship and responsibility; and culture of ethics.

"Visa Inc. continues to set the bar within its industry for a number of its ethics programs," said Alex Brigham, executive director of the Ethisphere Institute. "As more companies each year strive for recognition, Visa Inc. was added to World's Most Ethical 2013 by demonstrating its strong commitment to ethical practices."

Visa takes a comprehensive approach to ethical business practice, including industry-leading policies, trainings and programs. For example, Visa's Code of Business Conduct and Ethics, which applies to all employees and directors, emphasizes that honesty and integrity are of paramount importance in every activity. In addition, Visa's Corporate Responsibility program is focused on areas where its business expertise and philanthropic contributions can contribute to financial inclusion, humanitarian support, community involvement, and responsible business practices.

View the complete World's Most Ethical Companies 2013 list here.

What's more, the report found younger consumers are three times more likely than seniors to reduce their credit card use in favor of debit cards – 36 percent compared to 12 percent of seniors.

"The anticredit card sentiment appears to be waning," said Karen Augustine, manager of CustomerMonitor Survey Series at Mercator Advisory Group and the author of the report. "But issuers need to address the needs of the young adults in order to stimulate greater credit card volume."

The report is the fourth of eight consumer survey reports based on Mercator's CustomerMonitor Survey Series. Data was obtained during a national sample of 1,003 online consumer survey responses completed between June 8 and June 19, 2012.

A sense of ease and simplicity exists in uttering the words "I care about you" through a few sentences written on a card or an elaborate bouquet of flowers. The same sense of ease and simplicity should also be applied to online shopping, where we know we all want to get things done as quickly as possible.

Soon, consumers shopping online for the perfect bouquet will be able to checkout hassle-free as 1-800-FLOWERS.COM is added to the list of leading eCommerce merchants that offer V.me by Visa.

Today, V.me is available at a growing portfolio of leading online retailers, ranging from Shoebuy.com and Cooking.com to Rakuten Buy.com and Blue Nile. We're seeing real traction behind these leading eCommerce sites that are now offering V.me, as consumers and merchants alike have learned to appreciate the security, reliability and convenience of Visa.  Consumers benefit from a digital wallet service designed to make simple and secure online payments, without the bother of constantly entering card account numbers or billing and shipping information.

This battle is starting to heat up but don't expect this year to be decisive. There is still so much education and development that needs to happen and most consumers and merchants don't have a clue as to which wallet they will want to use. Visa has the advantage of being the biggest credit card network and that trust will surely give it a boost in the new digital wallet wars. But there's so much more game to be played, it's still too early to say who will prevail.  

Let's face it - life gets hectic. Deadlines loom, obligations arise and others rely on us to get the job done. When it comes time to truly take care of ourselves and our loved ones, we need services that help remove the hassle and allow us to breathe easier.

The joy of online shopping is as much about convenience as it is about the shoes, the flowers, the clothes you are acquiring for yourself or your loved ones, and V.me brings more of these goods into your life, safely, quickly and simply.

Consumers are online, and Visa is where they want to shop. According to a Nielsen Global Online Survey, more than 85 percent of the world's online population uses the Internet to make purchases - increasing the market for online shopping by 40 percent in the past two years.  

So, what are you waiting for? Start shopping!

"I was really surprised," said Susan Weinstock, director of Pew's Safe Checking Project. "I didn't know that prepaid cards would be significantly cheaper for people who overdraft -- and they are."   

"Savvy" Customer - If you're familiar with your checking account's fees and pay attention during the month, you're better off using this traditional method. Savvy consumers averaged $3.99 a month in fees for a checking account, compared to $4.50 a month for a prepaid card.  

"Average" Customer - Average consumers see a huge hike in fees for both banking methods, but a prepaid card becomes cheaper. Those with a checking account saw $28 in fees a month, while prepaid rang in at just $22.15. That'd make it a tougher call for many.

"Hapless" Customer - If you have a poor grasp of how your checking account works and you throw caution to the wind in your transactions, you're going to be much lighter in the wallet. This group paid an astounding $94 a month in checking fees, compared to just $28.70 in prepaid.  

See the full report here: Are Prepaid Cards a Smart Alternative to Checking Accounts?

The total value of the settlement is $7.25 billion on behalf of a class of about 7 million merchants in the U.S. that accept Visa and MasterCard credit cards and debit cards, a law firm for the merchants, Robins Kaplan Miller & Ciresi LLP, said in a statement.

The agreement follows a seven-year legal battle with U.S. retailers that accused the two largest payment networks of conspiring with banks to fix swipe fees, or interchange.

In a recent report titled, Prepaid and Gift Cards in the U.S., research firm Packaged Facts said that prepaid payment volume will jump more than 22 percent this year to $247.5 billion on nearly 10 billion transactions, compared with $202.2 billion in 2011.

Dissatisfaction with banks and regulatory changes affecting debit cards were two reasons for the rise, according to an article in MediaPost magazine.

According to Packaged Facts publisher David Sprinkle, card companies must increase customer retention, format card programs to serve the un- and underbanked, and build relationships with younger consumers, whose limited banking needs and mistrust of banks make them likely prepaid users.

Prepaid card issuers must also solve the problem of high product abandonment compared with bank accounts, which tend to have a low rate of churn. The article suggested that one way to increase loyalty and use might be to encourage customers to opt for direct deposit of their paycheck to a prepaid card.

More than half of the world's adults — 2.5 billion — are unbanked, according to research recently published by the World Bank Development Research Group. The American government, however, estimates that the U.S. is home to only 10 million of them, which means the vast majority of the unbanked live outside the country. And many of them reside in developing areas, such as India, where more than 40 percent of residents are unbanked, and Africa, where that number is at a staggering 80 percent.

Instead of trying to coax these populations into getting on board with mainstream banking, many companies are finding new ways to provide them with financial services, whether it's deploying kiosks to help the unbanked cash checks, pay bills and transfer money, or offering mobile banking services that allow consumers to transfer money via smartphones.

Help yourself

Take, for example, India-based Cms Info Systems, which has been providing the country with finanical kiosks for the past two decades. Business is still booming for the company that has projected a kiosk deployment growth rate of 10 percent between 2012 and 2013.

"A major factor in the continued growth of usage in India is due to the increasing market shift towards payment and cash-access of all types, the proliferation of locations, consumer reliance on the added functionality, speed and convenience of the banking kiosks, and the profitable strategic shift away from human-delivered service to 'self-serve,'" said J.B. Lalla, national sales manager for Cms.

Also, newer banking kiosks now provide multiple services — such as cash deposits, check deposits, money-transfer, statement printing, passbook printing and gift-card dispensing — which is driving increased usage.

Or take Europe-based Genkiosk, which has seen rapid growth of its bill-pay kiosks in the Middle East and in other regions with large migrant workforces, but isn't focusing only there. It's expanding its footprint to anywhere that the recession is driving customers to pay bills at the last minute, said James Oladujoye, CEO of GWD Media, the makers of Genkiosk.

"We first saw the boom in bill-payment kiosks in Dubai," he said. "Next, it was Qatar and Saudi Arabia, where there are also large populations of migrant workers and people without bank accounts or credit cards. If you could find a way not to make a journey, then line up just to pay cash to a teller, wouldn't you grasp it?"

Specifically, Genkiosk is penetrating new markets, including Indonesia and the Philippines, as its next geographical targets for bill-pay kiosks, but Oladujoye also noted how the global downturn has changed the financial sector in nearly every place in the world.

"Today, you can go anywhere — even a rich country like the U.S.A. — and you will find people who are having a very hard time. We are seeing users paying their electricity bills on kiosks with cash at the very last moment before they are cut off. This is happening everywhere, not just the countries we first prioritized. It is a sign of the times."

Going mobile

Developing economies like those in India and Africa are not only embracing financial kiosks, they are quickly embracing mobile banking, even more so than their North American counterparts. For example, India's My Mobile Payments Ltd., a mobile payment service provider, recently launched its Money-on-Mobile mobile wallet to the Indian consumer market.

The service, which is not tied to any mobile service provider or bank, allows mobile phone subscribers to pay for a wide range of goods and services by mobile phone.

Consumers can load their MOM m-wallets with cash at one of 82,000 retail touch points (expected to be 2 million by year's end) and use it to pay for electricity, gas and mobile bills and top-ups, as well as airline, bus and movie tickets.

MOM launched for the B2B market in India in 2010, and is now providing the semi-closed m-wallet for the consumer market. The service has 500,000 subscribers and does a business volume of INR 20 million ($358,422) daily.

"In a country like India where mobile phones are more widespread than the financial systems, mobile payment is the next big alternative payment method," said Shashank Joshi, managing director of Money-on-Mobile. "MOM does all paperless transactions and it is in line with RBI's vision of making 70 percent of the financial transactions paperless by end of 2012. MOM is committed to ensuring consumers the ability to make safe, convenient and flexible payments."

Paddy Micro Investments last month launched its newest platform to deliver financial services to Africa's unbanked people. Specifically, the company's "Pesa Pata " kiosks give low-income Kenyans access to quick loans, according to this story.

At the kiosk, the customer obtains a Pesa Pata scratch card valued between $3 and $59, and each card has a unique number that is loaded onto the customer's mobile phone. The amount is then credited to the customer's Safaricom M-Pesa mobile money account.

"We realized that there are times when people need instant cash, and going to a bank or micro-finance institution for a loan is not an option," Joyce Wangui, a director at Paddy Micro Investments. "Other people who work in the informal sector at most times cannot even qualify for bank loans."

The loans, which have a 5 or 10 percent interest rate, allows the kiosk owner to profit, but the model is dependent on the level of trust between traders and their customers.

Thousands of kiosk and shop owners countrywide have signed up as Pesa Pata agents, including Felistas Wanja, who runs a shop along Jogoo Road in Nairobi.

"Last week one of my loyal customers had a sick child and she needed money urgently," she said in the story. "I gave her two $59 Pesa Pata cards. When she paid back I made profit of $5 on each card. In the past people would take sugar on credit, now I give them the card, they buy goods in cash, and at the end of the month I will make a profit when they repay the loan.

Orange is yet another company targeting not only Africa, but also the Middle East.

It recently announced that more than 4 million customers are now using its Orange Money, which provides the unbanked with access to basic financial services through their mobile devices. Customers can transfer funds, set up a savings account and make payments using the services.

The services are available to consumers in 10 countries, including Botswana, Cameroon, Kenya, Madagascar, Mali, Niger and Senegal. The company plans to be in all 22 countries in Africa and the Middle East, where it provides wireless services.

"Orange Money plays an important role in driving growth in our activities in emerging markets, allowing us to contribute to the economic and social development of these countries, while improving our customers' loyalty," said Marc Rennard, Orange's executive director for EMEA operations, in the announcement.

The company's growth, said Rennard, indicates a strong consumer appetite for a simple and practical mobile payment service where people have limited access to bank accounts but are widely equipped with mobile phones.

Citi, Bank of America and Other Giant Banks are Highly Vulnerable, According to Javelin Bankographic Benchmark

The Javelin FI Vulnerability Index(TM) estimates huge potential losses for FIs because switchers manage $675 billion in deposits, and manage deposits that are 30% higher than customers who are unlikely to switch. Likely switchers also are willing to pay an estimated $92 million in fees for just four value-added services: money orders, cashier's checks, safe-deposit box rentals, and mobile deposit. The report examines the factors behind why customers stay - or leave - their primary FI and recommends specific strategies that giant banks, regional banks, community banks and credit unions can use to compete and capture these switchers -- and their billions in deposits.

"Bank Transfer Day was a bust, but FIs of all sizes can learn from it," said Mark Schwanhausser, Senior Analyst, Multichannel Financial Services at Javelin. "Our Bankographic Benchmark(TM) research shows that banks are still in danger of losing customers to FIs that can better respond to their needs, especially in the areas of mobile banking and self-service technology. With $675 billion of deposits and $92 million in fee revenue at play, smaller banks and credit unions really have the opportunity to win new customers."

"Ultimately, consumers are driven by convenience more than fees and protests," said Jim Van Dyke, President, Javelin. "Giant banks will need to drive home their messaging around convenience, mobile banking, and other services that smaller banks don't -- or can't -- offer. Smaller banks can play to their strengths of lower fees, convenience, and customer service, but they will need to beef up their mobile banking and mobile deposit offerings. Our report will show FIs how to re-engineer their product lines and customer acquisition and retention strategies to take advantage of these billions of dollars in deposits that are up for grabs."

Javelin's Bank Switching in 2012: Giant Banks Remain Highly Vulnerable as Consumers Weigh Fees and Convenience and Fees report assesses the prevailing attitudes of consumers toward staying with or leaving their primary FIs. The 31-page report is based on three online surveys of 4,800 to 5,000 consumers each and prescribes the specific strategies that FIs of all sizes can use to compete for consumers likely to switch.

More than half of recent switchers are under 35 years of age and use mobile technologies (smartphones and tablets) frequently. Mobile banking has emerged as a compelling factor for switchers, as they more than twice as likely as all consumers to use mobile banking.

• Comprehensive view of risk by combining VisaNet transactions and all other issued network transactions into common account profiles used in scoring.
• Detection of new and emerging domestic and international fraud schemes by evaluating authorizations and alerting issuers to potential fraud in real time.
• Unique tools to help issuers prevent fraud.
• Risk scores indicate the degree of risk associated with a given transaction.
• Compromised Account Risk Condition Codes provide descriptive information about high-risk compromise events detected across VisaNet.
• Compromised Event Reference IDs identify the association between an account and a specific compromise event identified by the Compromised Account Management System (CAMS).
• Expanded set of Managed Real-Time eligible transactions to include transactions from non-Visa networks.
• A new, detailed report with processor- and institution-level information about transactions that receive the Visa Advanced Authorization score, including the transaction date, time and amount, the Acquirer Network ID and Visa Advanced Authorization risk data.

According to CUNA, the joint brief describes how small and large financial institutions are harmed by the Fed's tight fee ceiling and that consumers have not seen any pricing benefits passed along by merchants who lobbied for the government-set cap last year.

CUNA argues that fees, currently set under provisions in the Dodd-Frank Wall Street Reform and Consumer Protection Act are too low and do not allow debit card issuers to cover costs and receive a reasonable rate of return on investments.

Dodd-Frank, signed into law last year, included a cap on interchange rates for debit card transactions. The final ruling on the legislation set the maximum charge at 21 cents, a significant decrease from previous rates, but still well above where merchants would like to see the rate set. The rule came into effect in October.

CUNA filed the amicus brief even though most credit unions are exempt from the ruling. The Fed rules do not apply to issuers with less than $10 billion in assets. However, CUNA said the exemption may not be such a benefit as merchants can simply steer transactions towards non-exempt debit cards from bigger issuers where the costs are lower.

CUNA said other organizations joining the filing of the amicus brief include the Independent Community Bankers of America,  National Association of Federal Credit Unions,  Midsize Bank Coalition of America, Consumer Bankers Association, National Bankers Association, The Clearing House Association, American Bankers Association, The Clearing House Payments Company,  and The Financial Services Roundtable.

"In the same way we have enabled the secure provisioning of payment cards for decades, we are now using mobile technology to securely provision mobile payment accounts over the air,” said Bill Gajda, head of Visa's mobile products.

"Financial institutions, mobile network operators and even transit operators now have a simple, secure process to activate payment applications at scale and make mobile payments part of everyday life for consumers around the world," Gajda said.

Visa said the service will include support for Visa and non-Visa payment, loyalty or mass transit applications on mobile devices, giving the example of a consumer downloading the appropriate app for a mass transit system in another city as a possible use for the technology.

According to the announcement, the new solution addresses a need for every member of the mobile payment ecosystem, from account holders to MNOs.

Visa said its next step will be to expand the product to create a "hub" that will not only connect one device to one account, but enable frictionless "many-to-many" accounts, avoiding what it calls "the need for parties to form bilateral commercial and technical relationships."

Member Access Pacific is pleased to continue its long tradition of sponsoring legislative advocacy for credit unions in Oregon and Washington. Again, MAP will sponsor the Washington state Government Affairs Conference (WGAC) in Olympia, WA.

The WGAC offers a crash course in legislative advocacy, followed by the immediate opportunity to put that knowledge to use in face-to-face meetings with legislators.

This year is the first for MAP to sponsor the Oregon Legislative Leadership Summit,  an event aimed at bringing together credit union leaders and their elected officials in Salem, OR.  The Leadership Summer begins with a group lunch and briefing, followed by visits with Oregon legislators, who will be invited to join participants at a culminating reception at the state capitol.

According to Mark Minickiello, vice president of legislative affairs for the NWCUA, coordinated advocacy efforts like the WGAC are critical to the well-being and growth of the credit union movement.

“Every year, our state legislature passes laws that will have an effect on credit unions,” Minickiello said. “It’s important to be a part of that process to ensure credit unions are fairly represented. Our annual state GAC affords us the opportunity to educate a lot of legislators about pending legislation that would have an effect on credit unions—all at the same time.”

The three-day WGAC agenda begins with a “Pizza and Politics” dinner on Wednesday, Feb. 1, in which Minickiello will give a briefing on the most important current legislative issues. Thursday’s intense schedule includes further updates, briefings and trainings from the NWCUA legislative affairs team, with visits with legislators occupying the afternoon. The event is capped by the Anchor Awards Breakfast on Friday morning.

But more important than any one agenda item is what the WGAC represents as a whole: an opportunity to show the size and strength of the credit union movement in the Northwest while laying the groundwork for future advocacy.

“Legislative hill visits are of prime importance during the state GAC,” he said. “When we can send 100 people to the Capitol to meet with their legislators simultaneously on one afternoon, we meet our goal of educating a large number of legislators. But it also makes a statement. Credit unions are paying attention, and credit unions get involved. It makes us part of the political fabric at the Capitol. So when representatives from our Association meet with a legislator or testify on a bill, that legislator knows who we are there representing.”

The 2011 WGAC focused on prize-linked savings legislation, which successfully passed later in the year, and on setting the stage for a public funds bill, which continues to be a focal point in 2012.

“Our main piece of legislation this year would allow public entities to deposit funds at any credit union in our state up to the level of federal insurance,” Minickiello said. “Currently, only state-chartered credit unions are approved depositaries for up to $100,000. This year’s state GAC would be a success if, when our legislation comes up for discussion in the caucus room or on the House or Senate floor, legislators already know about the issue and have just heard from credit union people in their district who want them to vote ‘yes.’”

While the events of last fall have already resulted in unprecedented attention and coverage for credit unions around the nation, Minickiello stressed that now is the time to capitalize on that heightened awareness and leverage the growing power of the credit union movement.

“Most legislators will clear their calendar if possible to meet with constituents coming to visit them in Olympia,” Minickiello said. “Especially credit union people! They know how important their credit unions are to their communities and their constituents, and if they don’t, a hill visit is the perfect time to let them know. They want to know how businesses and employers in their district feel about legislation that they may be asked to vote on.

“And we have seen an invigorated interest in credit unions since the Occupy movement began and since Bank Transfer Day. Lots of legislators are asking what they can do to help credit unions. We tell them, pass our public funds bill!”

The idea of jumping into the political arena and of sitting down with state legislators can be an intimidating one, and learning the intricacies of legislative advocacy can sound like a daunting task. But Minickiello explained that the WGAC is the ideal time for credit union leaders to make their voices heard, whether they are seasoned veterans or making their first trip to the Capitol.

Online merchants made significant progress fighting fraud in 2011, according to CyberSource, a payment management company. CyberSource, a Visa subsidiary, today announced results of its 13th annual survey of e-commerce fraud.

According to the survey, the percentage of online orders that turned out to be fraudulent dropped from .9 percent in 2010 to .6 percent in 2011 -- the lowest in the 13-year history of the survey.

However, the cost of combatting fraud continues to grow, according to CyberSource. Dollar losses were up, manual review continued to climb, and merchants reiterated their concern that fraud is becoming more difficult to detect. Twenty-seven percent of respondents said they are engaged in mobile commerce, and initial indicators regarding combatting fraud in that channel are promising.

On average, merchants say 1 percent of online revenues were lost to fraud in 2011, a slight increase over last year's figure of .9 percent, according to the survey. That translates to an estimated 2011 merchant dollar loss of approximately $3.4 billion. This is the first time merchants have cited an increase in the fraud rate by revenue since 2004, said CyberSource. The decease in the amount of online fraud, accompanied by higher estimated revenue loss, means fraudsters are stealing more expensive items -- $250 on average as opposed to $150 on average for a valid order.

(MONEY Magazine) -- Does "ditch my bank" make your list of resolutions for 2012? Join the club. Americans' simmering resentment toward big banks seems to have finally bubbled over: In the month after Bank of America (BAC, Fortune 500) threatened a monthly fee on debit cards, 221,000 folks joined more consumer-friendly credit unions -- equal to about a third of the new members for the entire previous year.

In addition, customers of the 10 largest retail banks are so fed up with rising fees and dismal rates that the institutions stand to lose a combined $185 billion in deposits over the next year, says consulting firm cg42.

Simply switching banks, however, might result in a frustrating game of whack-a-mole; a different institution could adopt the same miserable practices a few months from now. On the other hand, stuffing your dough in the mattress isn't practical, let alone comfortable.

How about a third way? Today "you can conduct most of your banking with institutions that aren't banks," says Alex Matjanec of MyBankTracker.com.

While going bank-free isn't for everyone, the truly incensed might try these alternatives for managing cash, growing savings, even borrowing.

Best checking alternative: Brokerage cash account

Most major brokerages offer cash-management accounts that function exactly like bank checking: You can set up direct deposit, get an ATM/debit card, write checks, even pay bills online.

"Brokerages are competing with banks to build a relationship with you," says McLean, Va., financial planner Gordon Bernhardt. Since the firms hope you'll use money you store to buy investments, they don't nickel-and-dime the cash accounts.

In fact, the options at five of the six brokerages MONEY surveyed (e*Trade, Fidelity, Schwab, Scottrade, TD Ameritrade, and Vanguard) were virtually fee-free. No monthly charges or minimums; no fees for bill payments; gratis withdrawals from any ATM, including reimbursements for surcharges applied by banks. A brokerage account was typically required, so look first to the firm where you already keep investments.

Vanguard was the anomaly among those that MONEY looked at. It alone required a certain threshold of assets -- $500,000 for access, $1 million to avoid fees. And it's the only one that didn't offer FDIC insurance; the rest hold uninvested funds with a partner bank or their own bank entity.

Best savings alternative: SmartyPig.com

Savings motivation site SmartyPig.com offers 0.7% on balances up to $50,000, 0.5% for amounts over that -- pretty decent compared with the average bank savings yield of 0.14%. And while the site isn't itself a bank, it stores your cash with one, so your money is insured.

Of course, you can do a bit better, around 1%, at a handful of online banks, but SmartyPig serves up other benefits banks don't -- like helping you save.

Savings: Get more yield on your cash

Rather than offering traditional accounts, SmartyPig makes you create goals, such as "vacation," which you fund by direct deposit or transfers from a bank or brokerage.

You can track progress graphically, and share the info with others. (Or set one generic goal, like "emergency fund," to simply take advantage of the rates.)

Saving for a purchase? Once you've met your target, you can choose a retailer gift card worth up to 11% more than your balance.

Best borrowing alternative: A credit union

While credit unions offer similar services to banks, these not-for-profit cooperatives aren't beholden to shareholders or the bottom line.

"That unique structure typically translates into more favorable terms for borrowers," says Greg McBride of Bankrate.com.

Send The Help Desk your money questions

A five-year new-car loan averages 4.9% at banks, vs. 3.5% at credit unions, reports Informa Research Services.

For home-equity lines of credit, banks are offering 4.7%, credit unions 4.4%. Rates on fixed mortgages come up about equal, though you'll probably save a few hundred in fees and get more direct access to decision-makers at a credit union.

Vending machine payment-services provider USA Technologies Inc. has struck a one-year interchange deal with Visa Inc. that allows machine owners to accept debit cards without higher costs. New interchange pricing that took effect Oct. 1 had threatened to raise card-acceptance costs for USA Technologies’ clients by more than 200%. The Malvern, Pa.,-based company, which services 129,000 unattended locations that accept cashless payments, has not reached a similar deal with MasterCard Inc. but continues to accept that network’s debit cards.

“The interchange reimbursement fees made available to the company by the network [Visa] pursuant to the agreement will allow the company to continue to accept the network’s debit products over the one-year term without adversely impacting the company’s historical gross profit from license and transaction-fee revenues,” says an Oct. 18 regulatory filing from USA Technologies. The company didn’t announce the deal until Friday.

Both Visa and MasterCard on Oct. 1 replaced their identical small-ticket debit interchange rates (those applicable to transactions under $15) of 1.55% of the sale plus 4 cents with a single rate for each network of 21 cents plus 0.05% of the sale. That’s the new cap the Federal Reserve Board set for debit cards from issuers with more than $10 billion in assets, with another 1 cent pending for fraud-control expenses. USA Technologies didn’t disclose pricing details in the filing or Friday's news release, but the release underlines the term “no increase,” implying 1.55% plus 4 cents remains in effect.

With an average ticket of $1.67, USA Technologies could have seen its interchange expense rise by 235%, from 6.6 cents to 22.1 cents, had 22 cents plus 0.05% been applied. Some 82% of purchases on the company’s network in fiscal 2011 were small-ticket debit card transactions, with 75% of those on Visa debit cards.

“As a leading provider of cashless payments systems to the small-ticket, unattended markets like vending, USAT moved swiftly and successfully, working with its card-processing partners, to develop a solution to overcome the potential negative impact to our industry arising from recent increased debit card interchange fees,” Michael Lawlor, senior vice president of sales, said in the release. Lawlor was not available for an interview Friday afternoon.The USA Technologies release notes that in addition to Visa debit and prepaid cards, machines in its network will continue to accept Visa, MasterCard, American Express, and Discover credit cards but makes no mention of MasterCard debit cards. In a statement to Digital Transactions News, however, a company spokesperson said, “We currently continue to accept MasterCard debit cards and we hope to continue to accept them in the future.”

A recent report by Visa shows the economic effects of mega-sporting events and the impact they have on tourism spending in the event host countries. The report analyzes Visa cardholder spending patterns of three recent mega-events: 2010 FIFA World Cup South Africa, the Vancouver 2010 Olympic Winter Games and the Beijing 2008 Olympics Games. According to the report, events of this scale create significant increases in expenditure and give host countries a chance to shine on the global stage.  For each of the three events analyzed, there was healthy growth in Visa payment card expenditure during the event compared to the year prior:
    82 percent for the 2010 FIFA World Cup South Africa
    93 percent for the Vancouver 2010 Olympic Winter Games
    15 percent for the Beijing 2008 Olympic Games
These three events have been catalysts of economic recovery for the host country and nations surrounding it in terms of international tourism spending.

The number of dollar bills rolling off the great government presses fell to a modern low last year. Production of $5 bills also dropped to the lowest level in 30 years. And for the first time, the Treasury Department did not print any $10 bills. The meaning seems clear: Cash is in decline. In 1970, at the dawn of plastic payment, the value of United States currency in domestic circulation equaled about 5 percent of the nation’s economic activity. Last year, the value of currency in domestic circulation equaled about 2.5 percent.

It might be easy to look down the slope of this trend and predict the end of paper currency. However, production of paper currency is declining much more quickly than actual currency use because the bills are lasting longer. Thanks to technological advances, the average dollar bill now circulates for 40 months, up from 18 months two decades ago, according to the Federal Reserve.

The futurists who have long predicted the end of paper money also underestimated the rise of the $100 bill as one of America’s most popular exports.  For two decades, since the fall of the Soviet Union, demand has exploded for the $100 bill, which is hoarded like gold in unstable places. Last year Treasury printed more $100 bills than dollar bills for the first time. There are now more than seven billion pictures of Benjamin Franklin in circulation — and the Federal Reserve’s best guess is that two-thirds are held by foreigners.

This is very profitable for the United States. Currency is printed by the Treasury and issued by the Federal Reserve. The central bank pays the Treasury for the cost of production — about 10 cents a note — then exchanges the notes at face value for securities that pay interest. The more money it issues, the more interest it earns. And each year the Fed returns to the Treasury a windfall called a seigniorage payment, which last year exceeded $20 billion.

To meet foreign demand, the Fed has licensed banks to operate currency distribution warehouses in London, Frankfurt, Singapore and other financial centers. In March, largely because of the boom in $100 notes, the value of all American notes in circulation topped $1 trillion for the first time.