Quick answers:
- What’s the main difference? Electronic signatures are any digital mark indicating consent, while digital signatures use encryption and digital certificates to verify identity and document integrity.
- Which is more secure? Digital signatures offer higher security through cryptographic technology and public key infrastructure, making them ideal for sensitive documents and strict regulations.
- Are both legally binding? Yes, both electronic and digital signatures are legally enforceable in most cases under laws like the ESIGN Act and eIDAS.
- When should I use each type? Use electronic signatures for routine business agreements and forms; choose digital signatures for situations that require advanced identity verification.
- Does pdfFiller support both? pdfFiller supports only legally binding electronic signatures with security features like audit trails and two-factor authentication.
Understanding the difference between digital and electronic signature technology is crucial for businesses navigating modern document management. While these terms are often used interchangeably, they represent distinct signing methods.
This guide addresses the most common questions about digital vs. electronic signatures, helping you determine which signing process best fits your business needs. We’ll explore legal validity, security differences, compliance requirements, and practical applications.
Foundational concepts
What is an electronic signature?
An electronic signature is any electronic sound, symbol, or process attached to or logically associated with a document that a person signing uses to indicate their intent to sign. This can be as simple as typing your name, clicking an “I agree” button, uploading a signature image, or drawing your signature with a mouse or stylus. By replacing paper-based methods, electronic signatures streamline the signing process, allowing documents to be signed online from anywhere.
What is a digital signature?
A digital signature is a specific type of advanced electronic signature that uses cryptographic technology to verify the signer’s identity and ensure document integrity. Digital signatures rely on public key infrastructure and digital certificates issued by trusted certificate authorities. When someone creates a digital signature, the technology generates a unique encrypted code using their private key that’s mathematically linked to both the document and their identity.
What is the difference between a digital signature and an electronic signature?
The main difference between a digital and an electronic signature lies in the technology behind them. An electronic signature is a legal term referring to any electronic sound, symbol, or process attached to a document to show intent to sign. In contrast, a digital signature is a specific type of electronic signature that uses a mathematical algorithm to bind a signer’s identity to a document, ensuring its integrity and authenticity through encryption.
What are the different types of eSignatures?
The term “electronic signature” is broad, covering various methods of signing documents online. These types are often defined by their level of security and authentication:
- A simple electronic signature (SES) is the most common type and includes methods such as drawing a signature or clicking “I agree.”
- An advanced electronic signature (AES) is a type of digital signature that is uniquely linked to the signer. It involves extra identity verification measures, such as verifying a government-issued ID or completing biometric checks, before signing..
- A qualified electronic signature (QES) is an advanced electronic signature that offers the highest level of security. It requires a certified digital certificate issued by a government-approved provider, providing the highest legal validity.
Security and technology
What’s the security difference between digital and electronic signatures?
A digital signature uses Public Key Infrastructure (PKI) to create a unique, tamper-evident “fingerprint” on a document. It uses a key pair: a private key that the signer keeps secret to create the signature, and a public key that’s shared openly to verify it. If the document is altered after signing, the signature becomes invalid. In contrast, a standard electronic signature relies on the security of the software, including audit trails and identity verification.
Are digital signatures more secure than electronic signatures?
Technically, yes. A digital signature provides a higher level of assurance for document integrity and signer identity due to its use of digital certificates and encryption. The PKI technology makes it nearly impossible to tamper with a signed document without detection. However, a robust electronic signature platform like pdfFiller offers strong electronic signature security through features, making it highly secure and reliable for most business use cases.
How does a digital signature work compared to an electronic signature?
An electronic signature functions by recording key details tied to the signing process, such as timestamps, IP addresses, and other identifying information. This creates an audit trail that verifies the signer’s identity. In contrast, a digital signature relies on Public Key Infrastructure (PKI) for enhanced security. When signing with a digital signature, the signer’s unique private key encrypts the document. The recipient then uses the corresponding public key to verify the signature and ensure the document’s integrity.
Can anyone forge an electronic signature?
Digital signatures are harder to forge. But good eSignature software also uses many security measures to prevent fraud. Reputable platforms use authentication safeguards like email links, SMS codes, and knowledge-based questions. They also track IP addresses and device info in audit trails. These records help confirm the signer was authorized.
How do I verify an electronic signature?
You can verify electronic signatures by examining the audit trail and metadata associated with the signing process. This record provides a detailed history of the signing process. Verifying eSignatures in pdfFiller is a straightforward process:
- Open the PDF signed by your recipients.
- Locate the applied signatures and check the “Verified by pdfFiller” stamps next to them.
- Check the audit trail: In the Dashboard, navigate to Sent > E-signature requests > Download certificate.
- Open the saved document certificated – it will contain key details about the document, its sender, and the signer’s information (email, IP address, and the signed date and time stamp).
To get the “Verified with pdfFiller” stamps next to the applied signatures, ensure to turn on the corresponding option when sending a signature request.
An illustration of how to verify electronic signatures on completed and signed documents in pdfFiller.
Legal and compliance
Are electronic signatures legally binding in the US?
Yes, electronic signatures are legally binding in the US. Federal law, specifically the Electronic Signatures in Global and National Commerce (ESIGN) Act of 2000, ensures that a contract or signature cannot be denied legal effect solely because it is in electronic form. Most states have also adopted the Uniform Electronic Transactions Act (UETA), which provides a similar legal framework.
What makes an eSignature legally enforceable?
Electronic signatures carry legal weight according to the ESIGN Act and the UETA. These foundational laws affirm that the legal validity and admissibility of an electronic signature cannot be challenged solely because of its electronic format.
For an eSignature to be legally binding, it must meet several specific requirements:
- A clear intention to sign: The signer must clearly intend to sign the document (for example, by clicking “I agree”).
- Consent to conduct transactions electronically: All parties must agree to do business electronically. This is usually done by checking a box or through clear language in the agreement.
- The signature must be clearly attributed to the signatory: The eSignature must be clearly linked to the signer (proof is needed that the person who signed is who they claim to be). This involves methods like email verification or two-factor authentication.
- Document integrity and record-keeping: The system must securely record the signing process to ensure the document remains unaltered. The audit trail includes timestamps, IP addresses, and signer authentication details.
pdfFiller is a secure, compliant platform designed to meet all regulatory requirements for electronic signatures. It offers a comprehensive audit trail feature that tracks all document activities, ensuring complete transparency and accountability in the signing process.
Are digital signatures accepted internationally?
The acceptance of digital and electronic signatures varies by country. Many countries have laws similar to the US ESIGN Act that recognize electronic signatures; however, the specific requirements can vary. For instance, the European Union’s eIDAS regulation establishes a tiered framework (SES, AES, QES) with cross-border recognition. When conducting international business, it’s important to understand the local laws to ensure that the type of electronic signature you use is legally enforceable.
Are electronic signatures HIPAA compliant?
Yes, electronic signatures can be HIPAA compliant if the platform provides strong security measures and a Business Associate Agreement (BAA). To handle Protected Health Information (PHI), HIPAA requires document integrity, signer identity verification, encryption, and strict access controls. pdfFiller is fully HIPAA compliant, offering the necessary safeguards and BAAs to securely manage sensitive patient forms and agreements.
What documents cannot be signed electronically?
While you can sign most documents electronically, there are still some exceptions. These typically involve documents that require a higher degree of formality or have specific statutory requirements. In the US, these examples include:
- wills and testamentary trusts
- adoption or divorce papers
- court orders
- official notices
Additionally, some jurisdictions require wet signatures for documents like real estate deeds or government forms. The rules vary by state, so always check local regulations for specific legal requirements before attempting to sign documents electronically.
Comparing document signing methods
Feature Electronic signature Digital signature
Security level Basic to moderate authentication through email/SMS verification Highest security using cryptographic technology
Technology used Electronic capture of signature intent (typed, drawn, uploaded) PKI with digital certificates and private keys
Identity verification Email verification, access codes, knowledge-based authentication Certificate authorities validate identity; cryptographic binding
Document integrity Audit trails and tamper-evident seals Cryptographic hash ensures any modification breaks the signature
Legal validity Legally enforceable under ESIGN, UETA, eIDAS Legally enforceable with additional non-repudiation benefits
Implementation costs Lower cost, subscription-based platforms Higher cost due to certificate fees and PKI infrastructure
Ease of use Intuitive signing process More complex
Best use cases Everyday business agreements, forms, contracts Highly regulated industries, sensitive documents, high-value transactions
Forgery risk Moderate risk without strong authentication Virtually impossible without compromising private key
pdfFiller eSignature features
What types of signatures does pdfFiller offer?
pdfFiller specializes in providing secure, legally binding electronic signatures. The platform offers several ways to sign a document online:
- Type your full name and customize its appearance
- Draw a handwritten signature using a mouse or trackpad
- Upload an image of your handwritten signature
All signatures created through pdfFiller comply with major electronic signature laws, ensuring legal validity for business agreements, forms, and contracts.
pdfFiller options for creating legally binding electronic signatures.
Is signing PDFs with pdfFiller secure for regulated industries?
Yes, pdfFiller is designed with enterprise-grade security and compliance. The platform is SOC 2 Type II certified, protects data with 256-bit encryption both in transit and at rest, and stores documents in secure AWS S3 data centers.
For industries with strict regulations, pdfFiller provides additional security features like two-factor authentication, custom access controls, and detailed permission settings. Plus, the platform adheres to industry-specific standards, such as FERPA for education. Since it is HIPAA compliant, pdfFiller is a perfect solution for healthcare organizations.
Can I sign PDFs on a mobile device?
Yes, with pdfFiller, you can easily sign documents from any device. The platform is fully accessible through a web browser on your mobile device. Additionally, pdfFiller provides dedicated mobile apps for iOS and Android, allowing you to manage forms on the go. You only need to install the app on your device, create an account with a suitable subscription, and ensure you have a stable internet connection.
How do I request eSignatures from multiple people on a PDF?
pdfFiller allows you to easily request signatures from multiple signers and configure the signing workflow:
- In the editor, click Add fields and drag the necessary fields to the PDF.
- Set Signature and Date fields as required for all parties.
- Click Menu > E-sign, add recipients in specific order, and click Save to send the signature request.
Each person will get an email inviting them to sign your document. The platform manages the workflow, automatically sending the document from one signer to the next, and you can track the signing process progress in real-time.
An illustration of how to add and manage recipients who will need to fill out and sign a document in pdfFiller.
Final thoughts
Choosing between an electronic signature and a digital signature depends on your business needs, risk tolerance, and legal requirements. For the vast majority of business agreements, a secure electronic signature provides the perfect balance of speed, convenience, and security, streamlining workflows and improving the customer experience.
pdfFiller delivers a comprehensive electronic signature solution that addresses the document signing needs of modern businesses. It combines intuitive signing workflows with robust security features, detailed audit trails, and compliance with major electronic signature regulations.
Ready to transform your document workflows? Start your free trial with pdfFiller today and discover how easy it is to create, send, and manage electronically signed documents.
Glossary
- Electronic signature: A broad legal term for any electronic process, symbol, or sound that indicates a person’s intent to sign a record or document. It is a legally recognised digital equivalent of a handwritten signature.
- Digital signature: A more secure type of electronic signature that uses a digital certificate from a trusted authority to link a signer to a document.
- Public Key Infrastructure (PKI): A cryptographic technology that powers digital signatures, using a pair of public and private keys to secure and verify information.
- Certificate authority (CA): A certificate authority is a trusted third-party organization that issues digital certificates used in public key infrastructure to verify the identity of individuals or entities.
- Audit trail: A detailed, time-stamped record of every action taken on an electronic document. It captures who did what and when, including viewing, editing, and signing events, along with data like IP addresses.
FAQ
1. What is the cost of implementing digital signatures vs. electronic signatures?
The cost of digital and electronic signatures varies based on the infrastructure and certifications required. eSignature platforms typically employ a subscription model, offering monthly or annual fees based on the number of users and features, with basic plans averaging around $10 to $15 per user per month. Digital signatures are more expensive because they require digital certificates issued by Certificate Authorities (CAs).
2. When should I use a digital signature instead of an electronic one?
Digital signatures are essential for transactions demanding the highest levels of security and irrefutable authenticity. This often includes contexts subject to strict regulations, such as government filings, high-value financial agreements, or critical legal documents where non-repudiation is paramount. For most other business applications—like sales contracts, HR forms, and internal approvals—a secure electronic signature offers sufficient and effective protection.
3. What are the main use cases for electronic signatures in business?
Electronic signatures simplify business operations. They streamline critical processes in HR, sales, and customer onboarding, such as employment applications, service agreements, and account openings. Financial services and real estate use them for loan and lease agreements. eSignatures are ideal for routine, time-sensitive documents where convenience is key.
4. Can I use the same digital signature on multiple documents?
You can't use the exact same digital signature on multiple documents because each signature is uniquely tied to the specific content of the document it signs. Attempting to copy a signature to another file would cause the verification to fail, as the signature's data wouldn't match the new document's content. However, you can use your single digital certificate and private key to create a new, unique signature for each document you need to sign.
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