Many people use the terms “e-signature” and “digital signature” interchangeably. However, an electronic signature and a digital signature are two different types of consent, from both a legal and a technological perspective.

If a signature is digital, electronic, or written by hand on paper the old-fashioned way, the intent is the same. All three forms of signature indicate that the party signing a document agrees to the terms therein.

E-Signature

An e-signature, or electronic signature, technically describes a variety of types of electronic approval allowed under e-signature law. In particular, the ESign Act, which is the federal law guiding esignatures in the U.S., defines an e-signature as follows:

an electronic sound, symbol, or process attached to or logically associated with a record and executed or adopted by a person with the intent to sign the record

Let’s makes sense of this definition. Practically, an e-signature could be a graphical stamp, a process, or even an audio file … not what first comes to mind when you think of a “signature.” An e-signature could be something as simple as a button that says “place order” (as is common on e-commerce websites) or as complex as a biometric signature.

For your business, however, it is critical to remember that while there are a wide variety of electronic signature types, not all of them have the same legal weight. A signature’s authentication, integrity, and security must be verifiable in order to be defensible in court. Most businesses require a handdrawn, or biometric, signature or similar form of unique authentication when executing a binding contract. Today, there is easy-to-implement and easy-to-use electronic signature software that achieves this higher standard.

Digital Signature

A digital signature involves a two-way digital handshake, something like a key and a lock. You can think of a digital signature as a rubber stamp, with the addition of bits of unique data that are incorporated into the digital stamp for authentication and security.

Fingerprints are also a common analogy used to describe digital signatures; both include unique data that is proprietary to the individual and not visible to the naked eye. A true digital signature incorporates computer code to indicate whether a signer or anyone else has modified or tampered with a file after signing. Once the final digital signature has been applied, any change to the file will be easily visible.

Because a digital signature requires both the sender and recipient to have specific software, executing an agreement with a digital signature is more complex than using an electronic signature. Both signature types are legally binding and are used to prove consent and agreement.

Best of Both Worlds

Executing documents, contracts, and forms online offers a host of benefits for businesses. Deals are closed faster, customers are impressed with an efficient process, little or no ink or paper are wasted, and the expenses of overnight shipping are eliminated.

Digital signature technology offers excellent authentication for electronic contracts, but the process of applying a true digital signature can be complicated and off-putting for most users. That’s the reason why many companies choose a platform or a tool like RightSignature, which contains the most important elements of both e-signatures and digital signatures.

Resources:

AppVita: Digital Document Signatures
Virtual Law Practice: Online Document Signing

RightSignature pioneered electronic signature software with its web-based application, which requires no downloads, plug-ins, or installs for senders or signers. The software is intuitive and easy-to-use: Simply upload any file (pdf, doc, and dozens of other formats are supported), indicate signers’ names and email addresses, place any necessary text fields or signature boxes, and click send. Signers may fill out and sign documents online using any computer, laptop, or even mobile device such as an iPhone or iPad.

These RightSignature features and tools will simplify your business operations and impress your customers, employees, and partners:

• Fast Sending – In as little as 60-seconds, users can select a document, choose the intended signers, enter a message, and send for esignature.
• Alerts and Notifications – As soon as a document is viewed or signed, RightSignature sends an automated email alert. These alerts inform users when their documents have been viewed but not signed, which provides timely cues for follow-up phone calls to clients.
• Form Fields – Collect information from clients by placing fill-in text fields on documents, applications, and contracts.
• Authentication – Signers of electronic documents are validated with a complete authentication portfolio, including biometric signature, IP address, email address, digital fingerprints, and more.
• Cross-Platform Integration – RightSignature integrates with other popular software systems, including Google Docs, Dropbox, Box.net, FreshBooks, Salesforce, and many others.
• File Support – Users may upload files in dozens of popular file formats, including pdf, doc, docx, txt, and xls.
• Audit Logs – Timestamped audit logs record each action in a document’s lifecycle, including document views and signature events.
• Handwritten Signatures – RightSignature’s proprietary technology enables signers to draw a real, handwritten signature on any computer mouse, laptop trackpad, or mobile device touchscreen.
• Document Packaging – Senders may combine multiple documents into a single package, which allows recipients to receive consolidated packages that are easier to sign and return.
• Digital Fingerprints – Digital fingerprints, including SHA-1 checksums, ensure legal validity by preventing parties from modifying any contact or agreement after execution.
• Branding – Emails can be branded to include the company name and custom messages, and while the company logo can be set up to appear during online signature events.
• Mobile Capabilities – Mobile applications allow senders and signers to conduct business transactions on iPhones, iPads, and other popular devices. Touchscreens turn into signature pads to capture handwritten signatures.
• Analytics – Statistics and reporting provide insight into a team’s productivity. This is especially useful for businesses looking for ways to cut down the cycle time involved in sending and receiving important contracts.
• Fax Signatures – Sign-by-fax capabilities allow customers to print, sign, and fax documents when they are not able to conduct transactions entirely online.
• Signature and Initial Boxes – Businesses can remind their customers of all the spots where a document needs to be signed and initialed by placing special boxes throughout their documents.
• Progress Meter – A live-action progress meter shows signers how much progress they have made in reading, filling out, and signing a document, as well as how much farther they have to go.
• Signature Certificates – Certificates are appended to complete documents and include audit logs, as well as each signer’s name, email address, IP address, signature, and other identifying information.
• Archiving – Document archiving allows businesses to quickly access documents that were signed in the past with keyword search and filtering tools.
• Templates – Set up frequently used documents as templates, including areas where merge data can be inserted into the document before sending.
• API – A simple, well-documented API enables custom integration of the e-signature software with your company’s systems, website, and workflows.
• Secure Encryption – Bank-level, 256-bit SSL encryption ensures the privacy and security of digital signature documents sent to clients, colleagues, and vendors.
• Legal Compliance – The system fulfills U.S., U.K., E.U., and international e-signature law requirements. Esign contracts have the same validity as paper contracts.

Resources
Wikipedia: Electronic Signature
ZDNet: Is it the Era of Electronic Signatures?

RightSignature enables users to upload pdf or doc files, specify recipients, and send documents for signature in under 60 seconds. This increasingly popular software enables busy professionals and consumers to execute agreements online, without having to rely on fax machines or overnight shipping carriers. By providing users with a straightforward way to get documents signed and returned in an electronic format, electronic signature software helps businesses increase response rates, improve efficiency, and cut operating expenses at the same time.

In order to be considered legally binding in court, contracts and agreements need to be authenticated and signed in accordance with e-signature law. RightSignature exceeds legal requirements by providing a complete portfolio of security and authentication features. Contracts executed electronically include additional signing event and identity data not captured on traditional paper documents, significantly increasing legal defensibility.

Currently, electronic signature software is being used by businesses of all sizes, from solo professionals to global enterprises, in virtually every industry. This is due in large part to how this software streamlines the process of obtaining signatures on important business agreements and forms, resulting in immediate cost savings and improved customer satisfaction.

Resources
Inc. Technology: Mobile E-Signatures for Legal Deals on the Go
Brand Channel: E-Signatures Take Off

E-signatures have been upheld in numerous court cases and, in many situations, prove to be more defensible than pen signatures. This legal strength is due to the robust authentication data captured by online signature software, which provides digital evidence of who signed a document, as well as when, where, and how they did it.

RightSignature, the e-signature solution popular with both small businesses and large enterprises, secures each executed document with an array of valuable authentication information, including each signer’s email address, IP address, timestamped audit logs, and biometric signature data.

The major e-signature laws include: