The Guide to Electronic Signatures

Posted by pbsoffice on November 24th, 2020

Electronic signature uses electronic transmission of data to sign checks by signatories. It is used by businesses globally for documentation. They are a legal replacement for handwritten signatures.

E-signature is an advancement of the handwritten signature. It has a limited legal duty of signing documents for businesses electronically. E-signature uses secure login passwords to ensure confidentiality and protection against any kind of fraud.

When executed correctly, the electronic signature's advanced security features make it impossible to forge, giving the business owners peace of mind.

Who Uses Electronic Signatures?

Electronic signatures are used by small and large organizations such as hospitals, Insurance providers, Fortune 500 corporations, schools, small businesses, government offices, and many others for documentation.

The number of businesses using E-signature has been rising over the years.

What are Electronic Signatures Used For?

The electronic signature is used on all kinds of documentation, including contracts, proposals, agreements, insurance paperwork, timesheets, school forms, slips, releases, among many others.

When the document is signed using the unique electronic identification of the user it can’t be changed. The user will be prompted in case of any unauthorized attempts to alter the signature. They are making E-signature perfect for confidential documents.

Reasons Why Your Business Should Use Electronic Signatures

• Unlike handwritten documents, which are done by mail, electronic signatures are completed faster and efficiently, saving time.
• It reduces paperwork as the documents are saved on digital files.
• E-signature is secure as imposters cannot forge it.
• It optimizes contract workflows by reducing mailing and printing costs.
• The electronic signature is legally recognized as a handwritten signatures replacement.
• The electronically drafted documents are easier to modify, eliminating the hassle of contract negotiation before the signing.

Are E-signatures legal?

Electronic signatures are recognized globally as a legal replacement for handwritten documents.

Electronic Signatures in the European Union

GDPR and eiDAS govern the legality and validity of electronic signatures in the EU. Companies interested in doing business across the European Union should look for compliance with GDPR and eIDAS bodies to get legal permission for electronic signature.

Electronic Signatures in the United States

Electronic signatures in the United States are governed by the Electronic Signatures in Global and National Commerce Act (E-sign Act) and the Uniform Electronic Transactions Act (UETA). In order to maintain the groundwork for electronic signatures, you have to combine the two pieces of legislation. Electronic signatures are much efficient and reliable; the reason behind its popularity globally.