What is the difference, and which is better? Just how does it work? Exchange and Banking your TS that is.
They are two steps of the same process:
When you
give your timeshare week to an Exchange Company, you are "banking" or depositing it so you can trade it.
When you
get a timeshare week from an Exchange Company, you are "exchanging" or trading your timeshare week, for another one.
With some timeshare systems, you may also be able to bank your week with your own resort, to trade or for future use - but that is a little different, because it doesn't involve an Exchange Company.