As electronic signatures are increasingly used, they’ve continued to directly support the continuance and expansion of businesses and organizations worldwide. Not to mention how much easier individual users are finding it to handle both everyday tasks and significant life decisions.
Below, we’ll take a closer look at the dynamic electronic process that’s allowed people and organizations to simply get things done. Plus, we’ll give you some expert tips on how you can use electronic signatures for your own business or organization.
These days electronic signatures are practically everywhere you turn. Did you recently sign for a package, complete a loan application, or communicate online with your physician? Chances are, you used some form of an electronic signature to complete these processes.
Electronic Signatures Explained
At their core, electronic signatures are simply a digital version of traditional pen-and-ink signatures.
Electronic signatures replace handwritten signatures on digital documents and allow businesses and individuals to gather and share official paperwork and contracts electronically. No more waiting for the mail to arrive or scheduling meetings simply to have paperwork signed.
Electronic signatures replace handwritten signatures on digital documents and allow businesses and individuals to gather and share official paperwork and contracts electronically. No more waiting for the mail to arrive or scheduling meetings simply to have paperwork signed.
Now, you can get documents signed with just a few short clicks:
- Upload your documents with an electronic signature service
- Designate where parties should sign and complete information
- Email documents for a signature
- Receive signed documents in record time
Quick, easy, and done!
Some common uses for e-Signatures are:
Healthcare Documents: The healthcare industry has seen tremendous growth in the need for electronic document signing in recent years. With reduction of patient face-to-face time, and with the general increased demand by patients for more convenient health services, healthcare professionals have begun to more steadily rely on electronic signatures for the completion of essential docs.
Government Transactions: Whether it’s a social worker gathering documents for a local Department of Developmental Disability, or an individual submitting tax forms for their business, transactions with government agencies have never been easier now that documents can be legally signed and exchanged electronically.
Legal Paperwork: Implementing a will? Starting a business or ensuring compliance in your industry? You can conduct most related transactions from the comfort of your home or office now, thanks to electronic signatures.
Education: Teachers have found themselves spending more hours than ever interacting with students, parents, and other faculty across a computer screen. This change in educational practices means educators must have a way to gather necessary permission forms and documents quickly, easily, and safely – that’s where e-signatures come in.
Finance: With the click of a button or the wave of their finger, applicants can easily and quickly secure loans and complete financial transactions.
What Are the Different Types of Electronic Signatures?
Think of your pen-and-ink signature and how often you need to add it to this document or that. Most likely, you sign in a way that’s not only unique to you but also convenient. Electronic signatures work in a similar way to allow users to add a convenient and unique signature. Here’s a look at the three main types of electronic signatures you’re likely to see:
- Click-to-Sign: By being both easy to do and quick to apply, the click-to-sign method is one of the most popular types of electronic signatures. Simply click where indicated to sign, and done!
- Click-to-Initial: Usually, click-to-initial works in conjunction with click-to-sign and allows users to easily add their initials to documents with the click of a mouse.
- Signature Capture: With signature capture, signers can imprint their signature to electronic documents by using their fingers, a stylus, or a mouse. This type of signature can also be used on mobile devices registered to the signer for quick and easy signatures to documents while on-the-run.
Are Electronic Signatures Legally Binding?
In short, yes – electronic signatures are legally binding and accepted in almost any scenario.
Before the year 2000, the use of e-signatures was a little questionable in acceptance. However, following the federal ESIGN and UETA acts being passed in 2000, it was mandated that electronic signatures are a valid form of signature as long as basic guidelines are met. To comply with these laws, e-signatures need to meet the following requirements:
- Must demonstrate a clear intent to sign
- Must have consent to electronic business conducting clearly agreed to
- A clear signature association record must be maintained
- A clear signature attribution (audit trail) should be present
- There must be an easy retention method or way to produce documents as needed
When the preceding circumstances are met, electronic signatures can be legally used for:
- Many legal documents and services
- Government forms
- Loan applications and other financial transactions
- Employment agreements
- Business contracts
- Sales receipts
- Service contracts
- Prescriptions and healthcare documents
- Other binding agreements
And more!
But what about documents that can’t use electronic signatures? The ESIGN and UETA acts have clearly outlined documents that still require pen-and-ink signatures for them to be considered legal. Here’s what you can’t use electronic signatures for:
- Recall notices
- Wills, trusts, and codicils
- Utility cancelation notices
- Family law paperwork, including divorce and adoption
- Court orders, briefs, and documents for official courtroom use
- Rental and primary residence notices
- Hazardous materials documentation
- Health and life insurance cancelation notices
Want to know more about how e-signatures can help you and your organization? Take a look at the intuitive industry solutions that Foxit eSign offers.
E-Signatures and Security
Generally speaking, there’s nothing safer than an e-signature – especially when paired with the technology of digital signature security! E-signatures can also be considered safer than traditional wet signatures. If you think about it, wet signatures can easily incur the following problems:
- Forgery
- Tampering
- Loss
- Copying
- Theft
With electronic signatures being used to get important documents signed, you can typically avoid the problems above and ensure a better layer of security is present for both you and your clients. That being said, it’s vital that you choose the right electronic signature software that can keep your business documents safe from A-to-Z. Here’s what you’ll want to look for:
256-bit SSL Encryption:
Hackers would have difficulty breaching this encryption because it requires a minimum of 2256 combination options to break.
A Firewall with Strict Controls:
All incoming and outgoing traffic is monitored and forced to abide by the network’s strict security rules.
System Access, User Activity, and Performance Logs:
So you can know what’s going on with your documents and perform audits whenever needed
DNS Failover:
DNS failover allows you to have the peace of mind that everything is ok should there be an outage.
DDoS Attacks Prevention:
A distributed denial-of-service (DDoS) attack occurs when a hacker attacks a network and makes the service unreachable. DDoS protections ensure you always have access to the system when you need it.
High Availability (HA):
High availability indicates a network is up for a higher-than-normal average, which means your documents are always accessible.
Cloud Servers in Trusted US Data Centers with SSAE16 Facilities SOC 2 and PCI Compliant:
Ensuring your data is only stored on the safest and most secure servers.
Secured ePHI:
All records are securely encrypted (via 256-bit Encryption) and transmitted from origination to the document software’s servers. All the data is secured, encrypted, and tokenized during storage.
Independent HIPAA Audit:
An independent HIPAA Compliance Group audits and certifies an e-signature software company to ensure safe, private, and compliant handling of all medical documentation and PHI.
HHS Standards:
Electronic signature software should meet all standards set forth by the Department of Health and Human Services (HHS).
Electronic Signature Levels
With electronic signatures, there are three primary levels: Simple (SES), Advanced (AES), and Qualified (QES). It’s crucial that the level of e-signature you use matches your individual industries’ compliance and regulatory requirements.
Essentially, each level consists of a varied level of security and due-diligence; here’s a basic rundown of what each level encompasses:
Simple Electronic Signatures (SES)
Simple Electronic Signatures (SES) are the most basic and least stringent format of electronic signatures.
- This level of electronic signing is often used for every day transactions like sales purchases and meeting minutes.
- SES is legally valid and binding
- SES complies with ESIGN and UETA
- SES does not require substantial ID verification
- Signer email addresses and unique access codes are often adequate for this level of signing
- Foxit eSign provides SES
Advanced Electronic Signatures (AES)
Advanced Electronic Signatures (AES) are often required or preferred in more official capacities or with higher value transactions. AES is considered a strong, secure, and legally binding form of signature on most digital documents.
- This level of electronic signing is often used for larger purchases (such as real estate), HR and hiring paperwork, financial paperwork, legal services, healthcare and HIPAA-compliant paperwork, non-profit transactions, and more.
- AES is legally valid and binding
- AES complies with ESIGN and UETA
- AES is uniquely linked to the signatory and can remain under their sole control throughout the process
- Uses unique PKI signing keys, dynamic 256-bit encryption, and provides digital certificates of completion
- AES provides thorough and tamper-evident audit history
- Foxit eSign provides AES
Qualified Advanced Electronic Signatures (QES)
Qualified Electronic Signatures (QES) are the highest level of electronic signature. This signature level is sometimes required by government institutions, by organizations who require stringent identity proof, or for certain transactions within the E.U in order to comply with eIDAS .
- This level of electronic signing is sometimes required for certain official government transactions, by organizations who wish to enable further identity verification, or for certain E.U. transactions that seek eIDAS compliance.
- QES is legally valid and binding
- QES complies with ESIGN and UETA
- QES provides thorough and tamper-evident audit history
- QES establishes identity through face-to-face verification processes that are provided by independent Qualified Trust Providers
- A personal signing key known only to the signer is provided
- Provides digital certificates of completion
If you are having difficulty determining which level is right for you and your organization, we can help you here at Foxit eSign. While we always recommend assigning the highest level necessary, we understand that not every document requires the most stringent electronic signature protection. We will always work to ensure that our electronic signature software meets your unique needs and requirements.
How E-Signature Software Can Integrate with Your Day-to-Day
So, how can electronic signature software help you and your business?
Obtaining e-signatures is essential to the day-to-day functionality of businesses and organizations. It’s pretty important that it easily fits in with the programs you already use.
If you’re shopping for the right electronic signature software for you and your organization, our industry experts say you’ll want to look for signature solutions that:
Feature Native Integrations or Open API:
You’ll want to ensure that the electronic signature software you use either already works with the software you use through native integrations or allows you to integrate it through open API easily. An application programming interface (API) allows one program to speak to and work with another and can allow you to incorporate e-signatures into almost any software or application your business uses.
Can Handle High Volume Documents:
However many signatures you need to send and receive each day – whether 1 or 10,000 – your e-signature service should be able to handle the volume. This high volume capability allows you, your employees, your coworkers, and your clients to obtain the forms and documents you need, when you need them – even simultaneously.
Can Easily Scale
When you scale up or scale down, your e-signature solution should be able to scale with you quickly. Don’t tie yourself down to a limited software solution that can’t handle the needs you and your organization have today; flexibility is key.
Feature an Easy to Learn Platform:
You’re busy, and you don’t have time to learn a new software system, and neither do your document recipients. Sending and receiving the signed documents you need should be done in just a few simple clicks. And, when you need some extra guidance, help should be available with just the click of a button.
Are Secure and Compliant:
The right electronic signature software is already securely built, knowledgeable, and certified to accommodate the compliance and regulatory requirements your organization has. Things like HIPAA, 21-CFR Part 11, and HHS compliance are integral to many businesses.
Know You and Your Industry:
When you use electronic signature software built with you and your industry’s needs in mind, it makes all the difference. The right e-signature software can help you navigate even the trickiest document processes.
Are you ready to get started with electronic document signing? See what Foxit eSign can do for you.
