Vector Art
Also known as line art. Can be scaled to any size while maintaining quality. Vector artwork is preferred for all products (unless printing photographs). If your image file ends with .ai, .eps, or .pdf, it might be a vector image (though it could still be a raster image).
Raster Art
Also known as bitmap art. Composed of pixels (or tiny squares) grouped together to make a complete image. When scaled larger, the image will look pixelated (or jagged). If your file ends with .psd, .tif, .jpg, .bmp, .gif, or is a photograph, it is a raster image.
Ideally we need your logo sent to us in an Outlined Vector Format in an .EPS or .Ai or sometimes a .PDF will work.
What is a "Vector File"? It is an outlined file that can be scaled to any size with getting blurry.
This example shows that the vector is OUTLINED meaning the file is able to be edited and scaled to any size. Where the .jpg cannot be altered and is 1 set size so if it is scaled larger it will begin to pixelate.