The answer to this question is two fold:

1) As a security precaution, when you generate the order transmittal file from E-File Magic 2.0, we encrypt this data using both symmetric and asymmetric encryption techniques utilizing two separate encryption algorithms. The first encryption technique utilizes key pairs. This ensures that even if our software was decompiled, it would be impossible to discover a *secret key* to unlock the transmittal data. Second, the actual bulk data is encrypted utilizing a randomly generated key, that is only known to somebody(us) that can decrypt the first message.

2) When you actually transmit the data to us, your web browser will encrypt the data transfer utilizing SSL.

We believe this multi-tiered approach helps ensure the utmost care is taken in securing your information.

You can verify that we are in fact encrypting your data by navigating to the E-File Magic installation directory, opening the ‘XMLTrans' folder, and reviewing one of the generated XML files(You must first have generated a file for transmission to us, via the Transmit screen.). You can also review a secure transmittal file example screenshot which details what an encrypted transmittal file looks like.