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Houston Mortgage > Glossary >
Credit Card > E 1-10
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e-commerce
A system used to conduct business transactions of buying and selling goods and services over a computer network.
Echeck
An electronic version or representation of a paper check. The account holder writes an echeck using a computer or other type of electronic device and transmits the echeck to the payee electronically. Like paper checks, echecks are signed by the payer and endorsed by the payee. Rather than handwritten or machine-stamped signatures, however, echecks are affixed with digital signatures, using a combination of smart cards and digital certificates. The payee deposits the echeck, receives credit, and the payee's bank clears the echeck to the paying bank. The paying bank validates the echeck and then charges the check writer's account for the check.
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. The way it works is that a depositing bank sends the paying bank (or a Federal Reserve Bank) an electronic transmission containing the details of a check, such as the amount, account number and check number, that the depositing bank will be presenting later in the day or the following business day.
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.
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