Utilizing eSignaturesAssociation of Business Training
October 4, 2012 — 899 views
E-signatures have become a prominent part of the increasing number of commercial transactions conducted electronically. People can enter into legally binding contracts with the click of a mouse or through the use of a digital signature pad. An esignature is a personalized form of identification that allows people to transact electronically in a number of ways.
Electronic signatures are legally binding when individuals enter into transactions using the personal identification numbers online, at financial institutions and through e-mail agreements. Electronic signatures include those used at point of sales where people sign for debit or credit card transactions using a digital pen. An esigntaure is a significant requirement in online transactions. When people agree to terms and conditions stipulated in various online forums, the “I agree” button is a form of signature.
Many organizations have changed their mode of undertaking transactions from accepting paper signatures to digital signatures. This type of signatures is fast replacing the need for paper copies. Congress passed the Electronic Signature in Global and National Commerce Act that makes electronic signatures legally binding to assist companies make a smooth transition from paper to electronic transactions. There are a number of benefits of using electronic signatures:
Electronic signatures have a potential of being more secure than paper signatures. Once a signature has been digitally established, it is almost impossible to modify it. For instance, thieves who steal unsigned credit cards can just sign the back of the cards to make the signatures the same as that in the receipt. Electronic signatures do not allow individuals to change their signatures.
Save on storage expenses
Digital signatures also help to reduce the cost of storage. They eliminate the need for paper which reduces storage costs and saves valuable space. There are instances when businesses have gone completely paperless by utilizing digital signatures. Organizations spend millions of dollars annually printing, mailing and copying contracts and other important documents.
Maintains document integrity
An esignature ensures document integrity. Once documents are signed electronically, it significantly reduces the probability of experiencing tampering or forgery after the document has been sent. It also minimizes alterations after the document has been sent and before it’s signed. Any changes made to a digitally signed document can be recognized by cross-referencing with the original document.
Suitable for global transactions
An esignature is ideal for businesses that want to transact over long distances. It allows businessmen to validate and complete contracts from any location in the world. An electronic signature increases the overall business productivity and leads to exploitation of more opportunities.