How to Create an EPS File With a Transparent Background. The Encapsulated PostScript file format is commonly used for vector images, but can contain raster elements as well.

Although JPEG images are bitmaps -- images built of many individual pixels -- and vector images in formats such as EPS are built of lines, curves, and other geometric shapes, you can use a simple ...

A vector file is an image that can be made infinitely large without losing quality, and usually comes as an .AI, .EPS, .PDF, or .SVG file.