Credit Card Glossary - E

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E-commerce

A system used to conduct business transactions of buying and selling goods and services over a computer network.

Earned and Unearned Income

Two different sources of income: earned income comes from wages, salary or business profits; unearned income comes from sources such as interest, dividends, rental income and pension benefits.

Effective Federal Funds Rate

The average interest rate that federal funds actually trade at in a day. The federal funds rate will remain stable for months at a time, but the effective rate is a volatile one that will vary every business day.

EFT

Electronic funds transfer. The transfer of money between accounts by consumer electronic systems such as automated teller machines (ATMs), and electronic payment of bills.

Electronic Cash

Also known as e-cash. A system used to transfer cash over the Internet to pay for goods and service.

Electronic Check Presentment

Called ECP for short, it captures an electronic image of the check at the point of sale. The image, rather than the paper check, is then processed by banks and clearinghouses.

Electronic Commerce

A system used to conduct business transactions of buying and selling goods and services over a computer network.

Electronic Funds Transfer

The transfer of money between accounts by consumer electronic systems such as automated teller machines (ATMs), and electronic payment of bills.

Encryption

A method for ensuring the privacy and security of a consumer's personal finance information at a bank or financial institution Web site. Encryption is the process of scrambling data so that only the intended receiver can use it. To be effective, encryption needs to be used by both the sender and the receiver. Consumers should make sure it is being used when sending sensitive information.

Equal Credit Opportunity Act

A federal law that prohibits discrimination in credit transactions on the basis of race, color, religion, national origin, sex, marital status, age, source of income or the exercise of any right under the Consumer Credit Protection Act.

Equifax

One of the Big Three credit bureaus, along with Experian and Trans Union.

Experian

One of the Big Three credit bureaus, along with Equifax and Trans Union.