Message Authentication Code - MAC

AAA

DEFINITION of 'Message Authentication Code - MAC'

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 Code - MAC'

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. Check

    A written, dated and signed instrument that contains an unconditional ...
  2. Debit

    An accounting entry that results in either an increase in assets ...
  3. Credit

    1. A contractual agreement in which a borrower receives something ...
  4. Deposit

    1. A transaction involving a transfer of funds to another party ...
  5. Bank

    A financial institution licensed as a receiver of deposits. There ...
  6. Yield On Earning Assets

    A financial solvency ratio that compares a financial institution’s ...
RELATED FAQS
  1. What were the objectives of the Glass-Steagall Act?

    The objectives of the Glass-Steagall Act were “to provide for the safer and more effective use of the assets of banks, to ... Read Full Answer >>
  2. What proportion of the global economy is comprised of banks?

    Most of the world's financial wealth is contained within the banking sector. After all, other industries part with their ... Read Full Answer >>
  3. Why do banks securitize some debts, and how do they sell them to investors?

    Banks may securitize debt for reasons that include risk management, balance sheet issues, greater leverage of capital and ... Read Full Answer >>
  4. How do commercial banks us the 'money multiplier' to create money?

    In a fractional reserve banking system, commercial banks are permitted to create money by allowing multiple claims to assets ... Read Full Answer >>
  5. What techniques are most useful for hedging exposure to the banking sector?

    The banking sector moves in the same direction as the broader market, but its volatility is much lower. The sector's stability ... Read Full Answer >>
  6. Is the banking sector a good choice for value investing?

    The banking sector is a good choice for value investing. Value investors look for stocks in which the market price does not ... Read Full Answer >>
Related Articles
  1. Credit & Loans

    The Evolution Of Banking

    Banks are a part of ancient history. Find out how this system of money management developed into what we know today.
  2. Insurance

    Your First Checking Account

    This owner's manual will show you what to expect from your bank.
  3. Options & Futures

    Choose To Beat The Bank

    From internet banking to credit unions, it's in your power to cut fees and maximize service.
  4. Options & Futures

    The Chinese Wall Protects Against Conflicts Of Interest

    After the crash of 1929, this barrier helped define ethical limits, but it did little to prevent fraud.
  5. Retirement

    What Was The Glass-Steagall Act?

    Established in 1933 and repealed in 1999, the Glass-Steagall Act had good intentions but mixed results.
  6. Options & Futures

    Who Backs Up The FDIC?

    The FDIC insures depositors against loss, but what happens if it runs out of money?
  7. Credit & Loans

    What's a Revolving Line of Credit?

    A revolving line of credit is an arrangement made between a company or an individual and a bank to borrow money on a short-term basis.
  8. Savings

    Explaining Checking Accounts

    A checking account is an account at a financial institution, usually a bank, that allows for deposits and withdrawals.
  9. Budgeting

    What Are The Best Mobile Banking Apps?

    As a society we expect to have 24/7 access to everything in our lives, our bank accounts included.
  10. Economics

    One Silver Lining Of Slower Global Growth

    Stocks struggled last week amid more evidence out of the world’s largest economies that global economic growth isn’t accelerating as expected.

You May Also Like

Hot Definitions
  1. Geometric Mean

    The average of a set of products, the calculation of which is commonly used to determine the performance results of an investment ...
  2. Fisher Effect

    An economic theory proposed by economist Irving Fisher that describes the relationship between inflation and both real and ...
  3. Fiduciary

    1. A person legally appointed and authorized to hold assets in trust for another person. The fiduciary manages the assets ...
  4. Expected Return

    The amount one would anticipate receiving on an investment that has various known or expected rates of return. For example, ...
  5. Carrying Value

    An accounting measure of value, where the value of an asset or a company is based on the figures in the company's balance ...
  6. Capital Account

    A national account that shows the net change in asset ownership for a nation. The capital account is the net result of public ...
Trading Center