Electronic signatures have revolutionized how businesses, freelancers, and individuals execute agreements. But what exactly is an e-signature, and how does it differ from a traditional “wet” signature? This guide explains everything you need to know.
Definition: What Is an Electronic Signature?
An electronic signature (also called an e-signature) is any electronic indication of a person’s intent to agree to the content of a document. Unlike a traditional handwritten signature, an e-signature doesn’t require pen and paper — it can be completed entirely on a computer, tablet, or smartphone.
Under United States law, the ESIGN Act (Electronic Signatures in Global and National Commerce Act) defines an electronic signature as:
“An electronic sound, symbol, or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record.”
This broad definition means electronic signatures can take many forms.
Types of Electronic Signatures
1. Simple Electronic Signatures (SES)
The most basic form. Examples include:
- Typed name — Typing “John Smith” into a signature field
- Click-to-sign — Clicking an “I Agree” or “Accept” button
- Drawn signature — Using a mouse, stylus, or finger to draw your signature on screen
- Pasted image — Inserting a scanned image of your handwritten signature
SES is the most commonly used type and is legally valid for most business transactions in the US, UK, and EU.
2. Advanced Electronic Signatures (AES)
AES adds identity verification and tamper detection:
- Uniquely linked to the signer
- Capable of identifying the signer
- Created using data that the signer can use under their sole control
- Linked to the document so that any subsequent change is detectable
AES is required for certain regulated transactions in the EU under the eIDAS Regulation.
3. Qualified Electronic Signatures (QES)
The most secure and legally powerful type:
- Created using a qualified electronic signature creation device (QSCD)
- Based on a qualified certificate for electronic signatures
- Issued by a qualified trust service provider (QTSP)
QES carries the same legal effect as a handwritten signature in all EU member states. It’s the only type that is automatically recognized across borders in Europe.
How Electronic Signatures Work
The typical e-signature process works like this:
- Upload — The sender uploads a document (PDF, Word, etc.) to an e-signature platform
- Prepare — The sender adds signature fields, date fields, and other form fields where signers need to act
- Send — Signers receive an email with a secure link to the document
- Sign — Signers review the document and apply their electronic signature (type, draw, or click)
- Complete — The signed document is sealed with an audit trail recording who signed, when, where (IP address), and how
The audit trail is critical — it provides the evidence needed to prove the signature’s validity if the agreement is ever challenged.
Electronic Signature vs. Handwritten Signature
| Feature | Electronic Signature | Handwritten Signature |
|---|---|---|
| Legal validity | ✅ Valid (ESIGN, UETA, eIDAS) | ✅ Valid |
| Speed | Minutes | Days to weeks |
| Cost | Low to free | Printing, shipping, storage |
| Audit trail | ✅ Automatic timestamps + IP | ❌ None |
| Remote signing | ✅ Sign from anywhere | ❌ Requires physical presence |
| Tamper detection | ✅ Built-in | ❌ Difficult to detect |
| Storage | ✅ Digital, searchable | 📁 Physical filing required |
When Are Electronic Signatures NOT Valid?
While e-signatures are valid for the vast majority of documents, some exceptions exist:
- Wills and testamentary trusts (most US states)
- Family law documents (adoption, divorce in some jurisdictions)
- Court orders and notices
- Certain real estate documents (varies by state)
- Notices of utility disconnection
- Product recalls and safety notices
Always check your local laws for specific exceptions.
E-Signatures with WPsigner
WPsigner brings electronic signatures to your WordPress website:
- Self-hosted — Your documents stay on your server, not a third-party cloud
- No per-signature fees — Sign unlimited documents
- Audit trails — Every signature includes timestamps, IP addresses, and document hashes
- Multiple signers — Send documents for sequential or parallel signing
- Legal compliance — ESIGN Act, UETA, and eIDAS compatible