What’s the difference between a JPEG and an EPS?

I hear this question from clients quite frequently and I get it, it can be confusing with all the different file formats out there; .jpeg, .eps, .ai,  .psd and terms like “vector.” What do you do when you don’t understand what your vendors are asking for?
Here’s a quick cheat sheet for common formats I’ve come up with to help:
JPEG format is for files that have a lot  of colors in them, for example images or photos. This format is mainly  for use on the web, but can be used in print depending on the resolution  or file size.
PNG format is meant for use on the web, but unlike .jpeg, this format has transparency. Good for vector files  like logos that are being used on the web.
EPS or AI format are vector files created from Adobe Illustrator and used for printed pieces. This is a high-resolution format that can be blown up in scale to be as large as you want without losing quality, which is why it is good for use on any large format printing like posters, banners or displays. Also good for printed pieces such as brochures, flyers, postcards or for use on promotional products.
PSD format is a native file created from Adobe Photoshop. It is usually high-resolution (large file size) and used mainly for photos that will  be used in print, but can be saved to another format (like jpeg) to be used on the web.
If you ever have any questions when a vendor or customer asks for a particular file from you, feel free to reach out to me with any questions. I’m more than happy to help out!