Introduction
Despite our digital age, many people still believe that dealing with cumbersome physical paperwork is an inevitable part of business. But there's a digital solution to this problem! Electronic signatures enable businesses to sign documents without the traditional print-sign-scan process. Not only does this reduce paperwork, but it's also legally compliant with electronic signature laws worldwide.
What are electronic signatures?
Simply put, electronic signatures are the digital substitute to traditional wet signatures. Businesses can use them to send, sign, and manage documents anywhere, anytime. Electronic signatures are simpler, more cost-effective, and more efficient than standard signatures.
E-signature vs digital signature
Electronic signatures and digital signatures are often used interchangeably, but there are some important distinctions between the two.
- Electronic signature is a broad term used to describe any type of signature created digitally. A signatory can electronically sign a document by simply typing their name or by inserting an image of their hand-drawn signature.
- Digital signature refers to a more secure paperless signature solution. The enhanced security measures involve attaching a digital signature certificate to the signed document, which protects the document from tampering.
ELECTRONIC SIGNATURE
DIGITAL SIGNATURE
Electronic replacement for wet signatures where an image or typed name is added to the document
Higher-security electronic signature that, in addition to an image or typed name, uses a digital signature certificate to verify the signer's identity
Legal validity depends on the local e-sign laws
Compliant with most e-sign laws around the world
Less secure, as the signing process doesn't necessarily require signer authentication
Verifies and captures signer identity using cryptographic hash to ensure the document is tamper-free
Not necessarily a digital signature
Categorized as a more advanced, secure subset of electronic signatures
Quick and easy digital substitute for traditional paperwork
Additional signer authentication makes it ideal for high-security transactions
Types of electronic signatures
In general, there are three levels of electronic signatures based on the signer verification requirements across the globe:
Simple Electronic Signatures (SES)
For daily transactions that don't require signer identification or verification, businesses opt for SES because of their efficiency and ease of use. SES are considered legally binding in certain transactions that do not involve high-security documents.
Advanced Electronic Signatures (AES)
AES have to meet the following requirements:
- Uniquely linked to the signer
- Allow identification of the signatory
AES are legally binding across the world. Documents that require higher security are typically signed using AES.
Qualified Electronic Signatures (QES)
Of the three e-signature levels, QES provide maximum compliance and trust. This type of signature requires the signer to verify their identity face-to-face with a Trust Service Provider (TSP) and use a digital certificate. This ensures the highest level of security.
The types of electronic signatures used in a signing process are determined by what the applicable e-sign laws require.
Benefits of electronic signatures
- Ease of use
- Secure document signing
- Save costs on envelopes
- Faster turnaround time
- Automate workflows
- Tamper-proof signing process
- Sign remotely
E-signature software
What is electronic signature software?
Electronic signature software (like Zoho Sign) provides a platform with a vast range of features that make the e-signing process more efficient and convenient. E-signature software helps businesses automate repetitive tasks, improve productivity, and cut costs that are otherwise spent on print, scanning, and mailing documents.
Use case in different departments
Sales
Sales agreements
NDAs
Order acknowledgement
HR
Onboarding documents
Company policies
Transfer letters
Finance
Invoices
Estimates
Trade and payment terms
IT
Asset management
IT policy management
Release management
Legal
Compliance documents
Non-disclosure agreements (NDAs)
Contractual agreements
Marketing
Sponsorship agreements
Ad contracts
Campaign approvals
Banking
Account-opening forms
Loan approvals
Nomination forms
Real estate
Real estate contracts
Lease agreements
Mortgage applications
Legality of e-signed documents
The validity of electronic signatures in the court of law varies depending on the location, as different countries have different criteria. The document type also dictates which level of e-signature must be used. For example, simple electronic signatures are sufficient when there is no need for authentication. But for something like an HR document, an AES or QES would make more sense, as the signer's identity needs to be verified before signing.
E-signature laws across the globe
ESIGN Act 2000
ECTA 2002
eIDAS 2014
ETA (Australia) 1999
ITA 2000
To see the full list of e-signature laws, access our legality guide.
Compliance with electronic signatures
Consent
Electronic signatures require the signers to explicitly state their consent to signing the document electronically before they start the signing process.
Uniquely identifies and links the signers
To ensure that the document is tamper-proof, authentication methods that are unique to the signer, including login credentials or SMS/email verification, are used.
Control of the signers
Only the signer has control over reviewing, signing, rejecting, or suggesting changes to the data in the document.
Tamper-free documents and signatures
The entire signing process is auditable through trails, ensuring that the documents and signatures are not altered and any alterations are detected.
Qualified certificates
To ensure security and authenticity, qualified trust service providers (QTSPs) provide qualified digital certificates that prove the signer's identity; certifying authorities (CAs) also provide digital signature certificates to prove signer identity.
Enhanced security
With an electronic signature solution like Zoho Sign, data is encrypted with military grade AES 256-bit encryption while at rest and is always transmitted through a secure SSL/TLS connection, ensuring complete data security.
Audit trails
Any activity taking place during the signing process can be audited by capturing timestamps, IP addresses, signing procedures, and other data so that the document remains secure.
Document timestamping
With document timestamping, the exact time when a certain piece of digital data exists is denoted with a digitally signed notation (often provided by timestamping authorities).
Overview of Zoho Sign
About Zoho Sign
Zoho Sign is an electronic signature platform that allows you to send, manage, and sign documents digitally, providing an alternative to wet signatures for digital-first businesses. Digitize paperwork and use a cloud-based e-signing process to go paperless while cutting down on costs and cumbersome labor. Learn how Zoho Sign allows you to securely sign documents online
Zoho Sign offers three licensing options—Standard, Professional, and Enterprise—priced per user, per month. For more information on Zoho Sign, refer to our pricing guide.
Security and legality with Zoho Sign
Documents signed with Zoho Sign are legally compliant with e-sign laws across the world, making them as valid as traditional paperwork in a court of law. Some of the popular laws that Zoho Sign complies with include the ESIGN Act in the United States and the eIDAS regulations in the European Union. Zoho Sign also processes all the data in accordance with laws such as CCPA and HIPAA in the United States, and GDPR in the European Union. View e-sign laws by country
Features of Zoho Sign
- Sign workflows with email and SMS delivery
- Bulk send, bulk sign, and in-person signing
- Public form-based signing via SignForms
- Automatic cloud backup
- Custom branding and white labeling
- REST APIs, webhooks, mobile and web SDKs
- Custom user groups, controls, and permissions
- Reusable and shareable templates
- Conditional and formula-based signer fields
- Signer authentication via one-time password (OTP) and trust services
- Qualified and advanced electronic signatures
- Trusted document timestamping
- Control module for life sciences and healthcare industries
- AI and blockchain-based timestamping
Zoho Sign integrations
Zoho Sign integrates with numerous Zoho apps and popular third-party software, such as Google apps, Microsoft apps, cloud storage apps, CRM solutions, and many more. Plus, Zoho Sign's Rest API can be used to create custom integrations. View an extensive list of Zoho Sign's integrations
Zoho Sign mobile app
Send, manage, and sign documents on the go with Zoho Sign's intuitive mobile app for Android, iOS, and iPadOS. Download the mobile app