Almost all digital cameras are capable of storing images as JPEG files. JPEG files use lossy compression to reduce the size of files. Most software lets you choose the amount of compression to apply when saving a JPEG image. Higher compression reduces the quality of the image and can increase the risk of losing detail, causing colors to shift, and blurring lines. The image below shows Photoshop’s JPEG save options dialog. The “image options” box is where you decide on the level of compression used