An electronic signature is any digital sign-off applied with the intent to agree. This may include typing your name, checking a consent box, drawing your signature with a mouse, or uploading your signature image. In this guide, you’ll learn how electronic signature works, the different types available, and how to create one for free.
Key takeaways
- Any digital action showing intent counts as electronic signature, e.g., typing your name or clicking "I agree".
- Simple e-signatures suit everyday forms; more secure types verify your identity for high-stakes contracts.
- Documents are locked after signing. Any change made afterward is detected, which invalidates the signature.
- A record proves you signed. Timestamps and device details mean you can't later deny signing.
- If you need an electronic signature to place in documents, CreateMySignature lets you make one in seconds, directly in your browser.
What is an electronic signature?
As per the Electronic Signatures in Global and National Commerce Act (ESIGN Act), an electronic signature is officially defined as
an electronic sound, symbol, or process, attached to or logically associated with a contract or other record and executed or adopted by a person with the intent to sign the record.
In simple terms, it is any digital process that demonstrates a person’s intent to sign a document or agree to its contents.
This legal definition is intentionally broad. It indicates that an e-signature doesn’t have to look like a handwritten text or replicate the wet signature to be legally binding. Instead, it focuses on a person’s intent to sign, regardless of the method. For example, the following digital actions qualify:
- Typing your name at the end of a document, email, or form
- Clicking an “I accept” or “I agree” checkbox on a website
- Drawing your signature with a mouse or touchscreen
- Placing a saved transparent PNG with your signature onto a document
- Using an e-signature tool for signing a document
Passed in 2000, the ESIGN Act established that an electronic signature is legally equivalent to a traditional wet signature for most personal and commercial documents. Moreover, under the Uniform Electronic Transactions Act (UETA) introduced in 1999, the legal validity of a signature cannot be denied or its enforceability simply because it’s in electronic form.
Three types of electronic signatures — and when to use each
There are three categories of electronic signatures:
- Standard Electronic Signatures (SES),
- Advanced Electronic Signatures (AES), and
- Qualified Electronic Signatures (QES).
The US’s ESIGN Act recognizes all of the above. However, it focuses mainly on the signer’s intent, not a specific technical tier. The choice of a suitable signature depends on a person’s legal jurisdiction and the level of risk involved in the contract.
In EU contexts, these three tiers are formally defined by eIDAS (Electronic Identification, Authentication and Trust Services). In contrast to the US, European regulations legally mandate a specific signature level for certain documents.
Standard electronic signature (SES)
An SES is the simplest type of electronic signature online. It includes typed names, uploaded images, drawn signatures, and consent boxes. The SES does not require identity verification besides the signing process itself. Given this, it’s suitable for everyday documents with minimal legal requirements.
Advanced electronic signature (AES)
An AES adds a layer of technical security. It must be uniquely linked to the signer and follow the identity verification process. Most importantly, it is linked to the document in a way that detects if the underlying data has been altered after signing. This makes an AES perfect for high-stakes contracts.
Qualified electronic signature (QES)
A QES is the most secure tier, primarily used within Europe and in highly regulated industries. It builds on the criteria of an AES but requires a Qualified Signature Creation Device (QSCD) and a certificate from a recognized trust service provider. In the EU, it is equivalent to wet ink under eIDAS. However, this tier is not commonly required for US business agreements.
Let’s recap all of the above to make your choice easier.
| Compare | Standard (SES) | Advanced (AES) | Qualified (QES) |
|---|---|---|---|
Security | Basic | Advanced | Most advanced |
Verification | No identity verification, just the act of signing | Uniquely linked to the signer | Face-to-face (or video) identity verification via an authorized trust service |
Best for | Everyday documents | High-stakes contracts | Legal and government contracts within the EU |
How electronic signatures work
Electronic signatures operate on three technical principles: authentication, data integrity, and non-repudiation. Together, they provide legal defensibility necessary in case a contract is ever disputed. Here’s how that works:
1. Authentication
This step verifies the signer’s identity. Depending on the signing method, a person may be required to confirm their email address, enter a one-time passcode, use a social media login, or undergo an entire identity check.
2. Data integrity
This makes sure that the document cannot be secretly altered after it’s signed. This is achieved through cryptographic hashing and checksums that lock the file. If even a single comma is changed after a signature is applied, data integrity mechanisms will immediately detect the alteration and invalidate the signature.
3. Non-repudiation
This step ensures accountability. It maintains evidence of the signing event: an audit trail with timestamps, email verifications, device IP addresses, and other signer details. With all this information in place, a signer cannot later claim they never signed the document.
Common uses for electronic signatures
Here are just a few areas where electronic signatures are being used — and how exactly:
- Sales: sales contracts, proposals, business pitches.
- Human resources: offer letters, onboarding documents, tax forms, company policy acknowledgments.
- Procurement: vendor agreements, purchase orders, supply contracts.
- Legal: non-disclosure agreements (NDAs), settlements, board resolutions, compliance documents.
- Administration: internal approvals, policy acknowledgments.
- Finance: invoices, payment approvals, expense reports, audit records.
Generally, companies are turning to electronic signatures for their pure convenience. These digital alternatives eliminate the need to print, manually sign, scan, and mail the documents. Instead, they let businesses complete agreements in minutes.
How to create a free electronic signature
With CreateMySignature, you can make a free electronic signature in under two minutes. No need to install software or register for an account to generate your file. Here is a step-by-step process:
- Go to CreateMySignature. Open our website in your browser.
- Choose your method. Decide whether you want to draw by hand, type your name and select a signature-style font, or generate your signature with AI.
- Adjust size and color. In the editor, choose a suitable color (black, blue, or red) and adapt the signature size to your liking.
- Download your signature. Click on the “Download Signature” button to save your signature as a transparent PNG.
- Apply to your documents. Add your signature to PDF, or use it to sign Word documents, forms, or email.
Important note! If you’re sending contracts that require a full audit trail, a standard electronic signature may not be enough. To add extra protection, create electronic signature images in CreateMySignature, and continue in PandaDoc for a legally binding e-signature workflow.
Need an electronic signature fast? CreateMySignature lets you create one in seconds, and it’s right in your browser, completely free, with nothing to download or install.
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