Message Authentication Code - MAC

A A A

DEFINITION

A security code that is typed in by the user of a computer to access accounts or portals. This code is attached to the message or request sent by the user. Message authentication codes (MACs) attached to the message must be recognized by the receiving system in order to grant the user access. MACs are commonly used in electronic funds transfers (EFTs) to maintain information integrity.



INVESTOPEDIA EXPLAINS

Message authentication codes are usually required to access any kind of financial account. Banks, brokerage firms, trust companies and any other deposit, investment or insurance company that offers online access can employ these codes.


RELATED TERMS
  1. Bank

    A financial institution licensed as a receiver of deposits. There are two types ...
  2. Check

    A written, dated and signed instrument that contains an unconditional order ...
  3. Credit

    1. A contractual agreement in which a borrower receives something of value now ...
  4. Debit

    An accounting entry that results in either an increase in assets or a decrease ...
  5. Deposit

    1. A transaction involving a transfer of funds to another party for safekeeping. ...
  6. Spoofing

    This is a scam where an attacker pretends to be someone or something else to ...
  7. Interest Rate Index

    An index that is based on the interest rate of a financial instrument or basket ...
  8. LIBOR Scandal

    A scandal in which financial institutions were accused of fixing the London ...
  9. Float

    Money in the banking system that is briefly counted twice due to delays in processing ...
  10. Capital Buffer

    Mandatory capital that financial institutions are required to hold in addition ...
Related Articles
  1. The Evolution Of Banking
    Credit & Loans

    The Evolution Of Banking

  2. Your First Checking Account
    Insurance

    Your First Checking Account

  3. Choose To Beat The Bank
    Options & Futures

    Choose To Beat The Bank

  4. What Was The Glass-Steagall Act?
    Retirement

    What Was The Glass-Steagall Act?

  5. The Chinese Wall Protects Against Conflicts ...
    Options & Futures

    The Chinese Wall Protects Against Conflicts ...

  6. Who Backs Up The FDIC?
    Options & Futures

    Who Backs Up The FDIC?

  7. What does the Daily Average Revenue ...
    Investing Basics

    What does the Daily Average Revenue ...

  8. How Visa Counts On Your Free-Spending ...
    Stock Analysis

    How Visa Counts On Your Free-Spending ...

  9. How To Trade Credit Card Stocks
    Chart Advisor

    How To Trade Credit Card Stocks

  10. What's a better way to borrow money: ...
    Savings

    What's a better way to borrow money: ...

comments powered by Disqus
Hot Definitions
  1. XW

    A symbol used to signify that a security is trading ex-warrant. XW is one of many alphabetic qualifiers that act as a shorthand to tell investors key information about a specific security in a stock quote. These qualifiers should not be confused with ticker symbols, some of which, like qualifiers, are just one or two letters.
  2. Quanto Swap

    A swap with varying combinations of interest rate, currency and equity swap features, where payments are based on the movement of two different countries' interest rates. This is also referred to as a differential or "diff" swap.
  3. Genuine Progress Indicator - GPI

    A metric used to measure the economic growth of a country. It is often considered as a replacement to the more well known gross domestic product (GDP) economic indicator. The GPI indicator takes everything the GDP uses into account, but also adds other figures that represent the cost of the negative effects related to economic activity (such as the cost of crime, cost of ozone depletion and cost of resource depletion, among others).
  4. Accelerated Share Repurchase - ASR

    A specific method by which corporations can repurchase outstanding shares of their stock. The accelerated share repurchase (ASR) is usually accomplished by the corporation purchasing shares of its stock from an investment bank. The investment bank borrows the shares from clients or share lenders and sells them to the company.
  5. Microeconomic Pricing Model

    A model of the way prices are set within a market for a given good. According to this model, prices are set based on the balance of supply and demand in the market. In general, profit incentives are said to resemble an "invisible hand" that guides competing participants to an equilibrium price. The demand curve in this model is determined by consumers attempting to maximize their utility, given their budget.
  6. Centralized Market

    A financial market structure that consists of having all orders routed to one central exchange with no other competing market. The quoted prices of the various securities listed on the exchange represent the only price that is available to investors seeking to buy or sell the specific asset.
Trading Center