Digital Signature vs Electronic Signature: What's the Difference?

What is an Electronic Signature?

An electronic signature (e-signature) is a broad term that encompasses any electronic process that indicates acceptance of an agreement or a record. According to the Electronic Signatures Regulations 2002 and the eIDAS Regulation, electronic signatures are legally recognized and can be as simple as:

• Typing your name in an email
• Clicking an “I agree” button
• Drawing your signature on a touchscreen
• Using a scanned image of your handwritten signature

Electronic signatures are widely used for everyday business transactions, internal approvals, and consumer agreements. They provide a basic level of authentication and are suitable for most routine business documents.

What is a Digital Signature?

A digital signature is a specific type of electronic signature that uses cryptographic technology to provide the highest level of security and authentication. Digital signatures are based on Public Key Infrastructure (PKI) and include:

• Cryptographic algorithms for signature creation
• Digital certificates issued by Certificate Authorities (CAs)
• Timestamping and audit trails
• Non-repudiation capabilities

Digital signatures are typically used for high-value transactions, legal documents, and situations where maximum security and legal certainty are required. They provide the strongest form of electronic authentication available.

Key Differences Between Digital and Electronic Signatures

Security Levels and Authentication

The security levels between electronic and digital signatures vary significantly:

Legal Validity and Compliance

Both electronic and digital signatures are legally recognized, but they have different levels of legal weight:

Electronic Signatures

Electronic signatures are legally valid under various laws including:

• Electronic Signatures Regulations 2002
• eIDAS Regulation
• UETA (Uniform Electronic Transactions Act)
• ESIGN Act

Digital Signatures

Digital signatures provide the highest level of legal certainty and are often required for:

• Government contracts and tenders
• Financial transactions and banking
• Legal documents and contracts
• Healthcare and medical records
• Regulated industry compliance

When to Use Each Type

Implementation and Best Practices

When implementing electronic or digital signatures in your business, consider these best practices:

Choose the Right Solution

For most businesses, a hybrid approach works best. Use electronic signatures for routine documents and digital signatures for critical transactions. FreePDFSign provides both options to meet your varying needs.

Security Considerations

• Implement proper authentication methods
• Maintain comprehensive audit trails
• Use secure document storage
• Regular security assessments
• Employee training on signature policies

Compliance Requirements

Ensure your signature solution meets industry-specific compliance requirements such as HIPAA for healthcare, PCI DSS for payment processing, and GDPR for data protection.