Traditional Signature vs. Electronic Signatures: Understanding the Differences
What do you imagine when you hear the word “signature”? 50 years ago, we might have all had the same answer, but today, “signature on paper” is not the only option for authorizing a document or transaction.
Here's everything you need to know about the main signature categories (traditional, digital and electronic signatures) and how to facilitate business processes.
What is a traditional signature?
A traditional, or wet, signature is created when someone physically makes a mark on a document. In some cultures, this is done by writing a name in stylized, cursive format (or even a simple "X") on a piece of paper. Other cultures use name stamps to the same effect. In either case, "wet" means that the signature needed time to dry, since it was done in ink or wax.
Wet signature is a term that describes the process of signing a paper document, form, or contract with pen and ink, often used to differentiate between a pen-and-paper signature and an electronic signature.
Throughout history, a traditional signature served as a binding contract and was used to prevent fraud. Today, electronic signatures can carry the same weight and legal effect as traditional handwritten signatures on paper documents. In most cases, an electronic signature saves time and money. , reduce risks, and provide a better experience for customers, partners, and employees. Electronic signatures are widely recognized and accepted throughout the industrial world.
How long should you continue using wet signature?
There are several situations in which you must collect a wet signature to make a document legally binding. A traditional signature is still required for some documents related to wills, trusts, adoptions, divorce proceedings, court orders, evictions, and insurance benefits.
An electronic signature requires the signer to agree to use electronic signature technology, so you should allow a traditional signature when the recipient of the document insists on a paper process to enforce an agreement or contract.
Can you use Doc Sweet for wet signing?
DocSupit can primarily be used for electronic and digital signature management in the cloud, however, you can also use it to help speed up the process of collecting and managing traditional signatures.
Let's say you're working with someone who prefers to sign their agreement on paper, you can still use DocSuite to send the agreement. Digital delivery (even via SMS) of your documents reduces any chance of your documents being lost in transit, and this allows you to get your document to the recipient safely and promptly.
From there, the recipient can fill out any additional information before printing the agreement to sign. Once it has been approved with their traditional signature, they can scan the document and upload it to the DocSet platform.
In cases where a traditional signature may be required, you can still use DocSuite to handle your documents to speed up initial delivery and manage your documents for future reference.
There are different legal definitions of electronic signatures, but the term generally refers to the acknowledgment, or approval, of an electronic message, transaction, or document. Some examples include:
Name written at the end of the email message
A name written on a form or electronic document
A copy of the handwritten signature on the sent fax
The Personal Identification Number (PIN) entered at the bank's ATM
Writing “I agree” or “I do not agree” to the electronic “Terms and Agreements” contract
A signature that is handwritten but captured digitally on a touch-enabled device, such as a tablet or smartphone (sometimes referred to as a “dynamic signature”)
A digital signature collected by an eSign application such as Adobe Sign.
Is a digital signature?
Sometimes referred to as a cryptographic signature, a digital signature is considered the most "secure" type of electronic signature, and includes a Windows-like certificate of authority to verify the authenticity of the signer (author and owner of the signature).
Parties on both sides of a digital signature can also detect whether the signed document has been altered or altered in any way that would invalidate it. Additionally, electronic messages are signed using the sender's private decryption key and are verified by anyone with access to The sender's public encryption key; This also ensures that both parties are who they say they are and that the content of the message has not been changed or intercepted.
Electronic and digital signatures are often used synonymously, but most types of electronic signatures do not have the security features of real digital signatures.
Some common uses for digital signatures include electronic tax forms, work permit applications, and online college applications.
Are signatures required for different purposes?
The use of traditional, electronic or digital signatures is left to the discretion of each party. Since the Electronic Signatures in Global and National Commerce Act (ESIGN) came into effect in 2000, digital and electronic signatures have the same legal standing as wet signatures. However, they still... Some organizations and individuals prefer a handwritten signature.
The ESIGN Act preserves a party's right to use or accept a wet signature even if the documents in question are electronic, it is up to each organization to create its own policy around signatures.
How does each type of signature affect business processes?
Many document-based business processes require signatures, such as approving contracts, invoices, and employee evaluation forms. Traditional signatures tend to slow down these processes because of their reliance on the physical exchange of paper, but even electronic signatures can become roadblocks when someone fails to sign a document in The right time.
Organizations operate most efficiently when electronic signature is integrated into their processes. For example, if a manager forgets to sign an invoice, the automated system can send her a reminder email after a period of time.
One of the quickest ways to start integrating digital signature into your automated business processes is to use a solutions marketplace. These marketplaces offer a wide range of pre-built solutions, templates, and integrations for users of a particular platform.
DocSuite's electronic signature system improves the efficiency of business processes by facilitating approval processes, reduces reliance on paper documents, which saves time and effort, ensures greater security of documents through encryption and identity verification, helps achieve effective communication between parties, and allows rapid collaboration. This enhances coordination and reduces delays, and also meets security and digital signature requirements, which enhances confidence in business transactions.
Aren't traditional signatures more secure than electronic signatures?
Typically, for wet signatures, validity and attribution are determined by comparing copies of the signatures and providing testimony from handwriting experts or witnesses who were present at the signing, which is not only expensive and time-consuming, but also less reliable due to the human element.
Electronic signatures are more secure than a traditional signature and therefore less susceptible to forgery. Contracts signed with DocSuite come with a secure electronic record. Our system's backend technology records the signer's IP address, as well as the date and time the document was signed, providing important data in case the authenticity is called into question. the signature.
By removing the possibility of human error and automating the entire data capture process, audit trails make it easier to prove authenticity and handle signature disputes in court.
How can the Doc Suite electronic signature system be used?
You can use the Doc Suite electronic signature system through the following steps:
Create an account: Create an account on the DocSuite system online.
Upload Document: Upload the document you wish to sign to your account.
Add recipients: Select who will sign the document and add their information, such as email.
Set up signature points: Select the locations where you want the signature to be on the document.
Send for signature: Send the document to recipients, and they will receive a message with a link to sign the document.
E-Signature: Recipients can click the link and e-sign using Doc Suite tools.
Tracking and Alerts: You can track the status of a document and receive alerts when it is signed.
Upload signed document: Once signed, you can securely download the signed document.
Nzlem Doc Suite makes it easy to use, speeds up electronic signatures, and maintains the legality of electronic documents.