From the shop on the corner to Fortune 500 companies and everything in between, we’ve been enabling the digital workplace and putting e-signatures and workflow together for our customers for years. We’ve seen the demand for e-signature firsthand, but we wanted to find out more about what’s stopping even wider adoption, especially in Canada’s small and mid-sized businesses. We’ve learned that many business owners simply haven’t had exposure to the technology yet, so we’ve put together an e-signature primer to get you on your way to keeping your business flowing in the office!
What exactly are electronic signatures?
There are a variety of options that fall under the electronic signature umbrella including:
- Signing a document by typing in your name and some other identifying data, such as your ID number
- Signing a digital document with your actual signature via a stylus, or by using your finger on a touchscreen
- Signing with credentials, which might require biometrics, password entry or encryption and coordination with a verified Trust Service Provider (TSP).
The last option is the most secure and recommended for businesses, especially when dealing with contracts or other items that involve compliance.
How do electronic signatures work?
This varies depending on the option you’re using. If you’re simply signing a digital document with a stylus – as you would at the cash register in most stores today – the image of the signature is captured and appended to the document.
However, more advanced e-signatures use verification technology to ensure that signatures are authentic and secure. These signatures provide audit trails, encryption and other backend tools to ensure authenticity.
Here is a quick look at how the process works:
- A document is sent to a person and requires a signature
- The user confirms their identity via solutions like Ricoh e-signature; biometrics that use finger or face scans; or signature verification technology that measures how a person signs their name, including the shape and length of pen strokes and the pressure used
- The data about the electronic signature is added to the digital document
- The document and the verifiable, trackable signature continue through the automated workflow for processing as required by the company
How many types of digital signatures are there?
Digital signatures are classified into three categories:
Simple: A simple signature is not encrypted and is the least secure signature type. Common examples are a signature you make on a delivery person’s mobile device when you receive a package or something as easy as checking a box online to agree that you’ve read a company’s security policy.
Advanced: This signature type is encrypted with a key created by a TSP that is only accessible to the signer. Data is coded so it’s not readable or usable for anyone unless they provide the key. Two-factor authentication of the identity of the signer – such as a code sent in an email or a text – is sufficient for an advanced signature. Biometric signatures are also in this category. If there is a dispute where you need to prove the signer’s identity, you’ll need an advanced electronic signature.
Qualified: A qualified signature is the most secure option and is legally binding in most cases. This kind of e-signature ensures that the document has not been manipulated because a TSP issued a digital certificate and authenticated the identity of the signer. Because these types of digital signatures are verified and secure, they often carry as much weight as pen-and-ink signatures.
Is it safe to use digital signatures?
The actual signing process takes place in hardware security modules (HSMs), which are operated in a secure cloud server infrastructure. Hardware security modules are special crypto processors that ensure the protection of signatures and software keys. In the case of Ricoh’s e-signature solution, we also use strong data encryption technologies to provide reliable data protection for transmission and secure storage of documents while providing a comprehensive audit trail with date and time stamp; legally valid signatures and encrypted documents; and customizable authentication methods as per user and transaction security requirements.
Take the next step
Trust forms the basis for any exchange of goods, services or propriety information.
A signature is a symbol of that trust when contracts or other agreements are executed.
Electronic signatures go even further than traditional pen-and-paper signatures by verifying that a signature is authentic while saving your business time and reducing costs by expediting business processes.
With digital signatures, your growing business can run more smoothly, get cash in the bank quicker and give you a break from all the paper management – all while meeting any municipal, provincial, federal, industry-specific and international compliance requirements both in terms of information security and data protection.
Ready to kickstart your business? Let’s talk about e-signatures!
