E-Signatures vs. Digital Signatures in PDFs: What's the Difference?

What is an electronic signature?

An electronic signature, or e-Signature, offers a method for endorsing documents formally. Consider it an alternative to the traditional wet ink signature. What's a typical example of an electronic signature? It can be something as simple as doodling your name, checking a box, or filling out a date in a form. The primary goal is to streamline the process, making it both quick and easy. Tax forms, insurance policies, procurement contracts, etc. can be signed in mere seconds. The only necessity is access to the Internet.

Electronic signatures can provide stronger protection than traditional handwritten ones. For this purpose, choosing software platforms that prioritize security is vital. You may also be interested in learning about different kinds of electronic signatures. Here's a quick rundown:

- Simple electronic signature (SES). No identity verification is required from the signer. It’s commonly used for informal documents and provides little or no protection against fraud. In this context, “PDF signature” often refers to a simple digital form of signing.

- Advanced electronic signature (AES). Certificates are required to identify the signer, but this choice can still be vulnerable to fraud. Typically, a Certificate Authority (CA) validates these signatures.

- Qualified electronic signature (QES). It requires additional user authentication, including presenting a valid government-issued document, passing biometric checks, and using a unique access code after signing.

In this article, our focus remains solely on the simple type of e-Signature. So, let's keep moving.

What is a digital signature?

Think of a digital signature as a secure lock that keeps your document safe and authentic. Technologies such as public key infrastructure (PKI) and advanced encryption have made things easier: digital signatures are now the preferred method for signing. This tech ensures that only people who are supposed to sign can do so, protecting this process from any unauthorized alterations. Digital signatures are widely adopted across finance, legal, and government sectors.

Digital signature vs electronic signature: key differences

Digital signatures are a specific type of electronic signature. Let’s have a closer look at their specific characteristics.

Digital or electronic signature: Which one to use?

Electronic and digital signatures serve distinct purposes: the choice between them isn't about determining which one is better. Instead, consider what level of security you need for handling documents online.

Need to deal with a rental agreement for residential properties? Go with e-Signature. HR department just requested that you sign a PDF to proceed with onboarding? It’s an e-Signature use case again. As you see, they work just fine for everyday contracts and agreements. That’s how you save time and resources while enhancing productivity.

Digital signatures are more expensive and involve more complexity. Therefore, they’re preferred for documents that contain highly sensitive information. These might include international agreements, legal documents, healthcare records, contract management software, etc. Enhanced security and legal validity must not be compromised here.

Final thoughts

Both electronic and digital signatures enhance business efficiency by streamlining the process. However, selecting the appropriate signature method requires careful consideration of your needs to ensure your electronic documents' authenticity and integrity. Understanding how to create a signature that meets these criteria is pivotal. Failure to do so can result in significant financial losses and damage your reputation.

And a final, crucial point: electronic and digital signatures help us cut costs. We don’t need paper and printing supplies for that. Adopting this approach is no longer just a trendy decision; it has become vital in the modern business landscape. Previously, we didn’t fully recognize how technology solves the problems we face. So, embracing its solutions means enhancing the business’s proactive position.