What Is a Digital Signature Called — Practical Guide for eSignatures

TL;DR

Digital signatures are electronic equivalents of handwritten signatures that prove signer intent and document integrity. In the United States they are commonly called digital signatures or eSignatures and are legally valid under ESIGN and UETA. signNow supports legally compliant eSign workflows with audit trails, encryption, templates, and integrations for web, mobile, and API use.

What a digital signature is

A digital signature is an electronic mark that shows a person agreed to a document, much like writing a name on paper but stored as secure digital data. It proves who signed and that the document has not been changed after signing. In practice people call these eSignatures, digital signatures, or electronic signatures. Platforms such as signNow let users fill and sign online, request signatures, attach authentication, and save a tamper-evident Audit Trail so signed files remain verifiable and enforceable.

Legal validity and when to use it

Electronic signatures are enforceable in the United States under the ESIGN Act and UETA, and signNow implements required controls like timestamps and consent capture to support legal validity.

Common challenges to expect

• Confusing terminology between digital signature and eSignature can slow adoption across departments.
• Incomplete signer authentication increases risk of disputes or rejected agreements in regulated contexts.
• Poorly prepared forms lead to missing fields and require reissues, delaying processes.
• Lack of retention policy or audit trail makes compliance and litigation response difficult.

Who uses digital signatures

Organizations across many industries use eSignatures to speed approvals, reduce paper handling, and maintain compliance.

• Real Estate teams use eSignatures for leases and purchase agreements to close deals faster and remotely.
• Healthcare providers collect patient consent and intake forms using HIPAA-compliant electronic signing workflows.
• Finance and legal teams sign contracts, tax forms, and client authorizations with secure audit records.

Typical user personas

HR Manager

An HR Manager uses eSignatures to collect onboarding documents, tax forms, and policy acknowledgements. They create templates, send bulk invites for large hires, and track completion. Using signNow they can set authentication, reminders, and store completed forms in connected cloud storage for compliance and audits.

Sales Rep

A Sales Rep uses eSignatures to send proposals and contracts, capture signatures on mobile or desktop, and accelerate deal closure. They integrate signNow with CRM systems, use templates to reduce errors, and rely on audit trails to show signing order and timestamps for legal or procurement reviews.

Security and compliance at a glance

Encryption in transit: TLS 1.2 and 1.3

Encryption at rest: AES-256 encryption

US legal acts: ESIGN and UETA

Privacy regulation: CCPA and GDPR compliant

Audit and controls: SOC 2 Type II certified

Healthcare standard: HIPAA with BAA required

Risks of improper eSignature use

Contract disputes: Signatures challenged

Regulatory fines: Noncompliance penalties

Data breaches: Exposed sensitive data

Operational delays: Missed deadlines

Loss of trust: Damaged reputation

Storage gaps: Missing records

Real-world signNow examples

Below are two real signNow customer examples showing common use cases and outcomes.

Optica Ventures, COO

Optica simplified investor paperwork with signNow templates and mobile signing

• Faster investor responses
• Reduced in-person signatures and processing time

Resulting in quicker closings and better customer convenience.

Xerox NetSuite Director

Xerox integrated signNow with NetSuite to route approvals and collect signatures programmatically

• Integration preserved data flow between systems
• Reduced manual entry and errors

Leading to more accurate records and faster order processing.

Step-by-step: complete an eSignature

Follow these action-oriented steps to upload, prepare, and send a document for electronic signature using signNow on the web or mobile app.

• 01
  Upload Document: Open signNow, click Upload, select the file from your computer or cloud storage and confirm upload.
• 02
  Add Fields: Open the editor, choose Signature and Date fields, then drag them onto required locations for each signer.
• 03
  Set Recipients: Enter signer names and emails, specify signing order if sequential, and add custom authentication if needed.
• 04
  Send for Signature: Compose the email message, set reminders and expiration, then click Send to start the signing workflow.

How electronic signing workflows operate

An eSignature workflow moves a document from preparation to final, signed storage. signNow supports routing, authentication, and storage steps that keep intent and integrity clear.

• Prepare Form: Upload PDF, add fillable fields, and configure required inputs.
• Authenticate Signers: Choose email, SMS, or knowledge-based authentication for each signer.
• Route Document: Set signing order and send to participants with notifications and reminders.
• Finalize & Store: Completed files include an Audit Trail and can be archived to cloud storage.

Core features relevant to the question

Understanding what a digital signature is includes knowing the features providers use to capture and secure signer intent during electronic workflows.

Audit Trail

A tamper-evident record of the signing session with timestamps, IP addresses, and actions to prove who signed and when.

Signer Authentication

Options such as email verification, SMS codes, and advanced authentication methods to confirm signer identity before allowing signature actions.

Templates

Reusable templates that save field positions, required zones, and messaging to speed repeated agreements and reduce errors.

Mobile Signing

Native mobile apps enabling signers to complete agreements on phones or tablets with the same security controls as web workflows.

Best practices for electronic signatures

Apply practical controls to ensure signatures are enforceable, secure, and efficient across teams and systems.

Design forms for clarity and completeness

Use clear field labels, required field settings, and helpful instructions so signers complete documents correctly first time and reduce rework or invalid signatures.

Use appropriate signer authentication

Choose stronger authentication for high-risk documents such as contracts, financial authorizations, or healthcare forms to reduce risk of repudiation and meet compliance expectations.

Keep a consistent retention policy

Define how long signed documents and Audit Trails are retained to meet legal, regulatory, and internal recordkeeping requirements while controlling storage costs.

Integrate with core systems

Connect eSignature workflows to CRM, ERP, or document management systems to automate storage, trigger business processes, and maintain single source of truth for signed records.

When to trigger eSignature workflows

Use clear trigger points to start signing processes so teams know when to send documents and when to escalate reminders or expirations.

01

New hire start date

Send onboarding packets two weeks before start.

02

Contract renewal window

Initiate renewal 60 days before contract end.

03

Sales acceptance

Send contract immediately after verbal approval.

04

Regulatory deadlines

Start signature collection before statutory filing deadlines.

Retention and timing examples

Set retention and timing rules aligned with law and policy to ensure signed documents are available when needed and disposed when appropriate.

Employee records retention:

Retain for at least seven years after termination.

Financial transaction files:

Keep for seven years to match tax audits.

Healthcare consent forms:

Follow HIPAA retention rules for patient records.

Contract storage period:

Maintain contracts for statute of limitations period.

Audit Trail retention:

Store Audit Trails with documents for the same retention duration.

Advanced features and variations

Different eSignature deployments use additional capabilities to meet specialized requirements in regulated or enterprise environments.

API access

Programmatic document signing and automation via REST API for embedding and custom workflows.

Conditional fields

Show or hide fields based on prior answers to simplify forms and reduce signer errors.

Payments integration

Collect payments as part of a signing flow to finalize transactions online securely.

Kiosk mode

Allow in-person signing on shared devices with guided, single-session workflows.

Offline signing

Capture signatures offline on mobile and sync when connectivity resumes.

Advanced signer auth

Require phone verification, knowledge-based checks, or SSO for higher assurance.

Managing Audit Trails and records

Maintain clear recordkeeping by using audit trails, export options, and secure archival processes for signed documents.

01

Enable Audit Trail:

Turn on Audit Trail capture in document settings before sending.

02

Download Evidence:

Save the signed PDF and Audit Trail as a single packet for legal needs.

03

Archive Signed Files:

Move completed documents to long term cloud storage automatically.

04

Set Retention Rules:

Configure document retention and deletion policies by folder or tag.

05

Export Compliance Reports:

Generate CSV or PDF reports of signing activity for audits.

06

Restrict Access:

Use role-based permissions to control who can view records.

FAQs and troubleshooting

Common questions about digital signatures and signNow workflows with practical troubleshooting steps and explanations.

• Why is a signature rejected or invalid?
  Invalid signatures often result from incomplete fields or incorrect signer authentication. Confirm required fields are filled, ensure the signer uses the exact email invited, and check that any identity checks completed successfully. If a signer used a different email, reissue the invite to the correct address to preserve the Audit Trail and maintain legal defensibility.
• How do I add signer authentication?
  In the recipient settings of the document, choose verification method such as SMS code or knowledge-based authentication. Specify the phone number or questions required, save the settings, and inform signers that extra verification is required before they can complete the signature.
• What if a signer needs offline access?
  Use signNow mobile apps with offline mode to let signers open the document without connectivity, complete fields, and sign. The app will securely store the signed record and sync it to the account when the device reconnects to the internet.
• Where is the Audit Trail stored?
  The Audit Trail is attached to the completed document within signNow and saved in the account. It includes timestamps, IP addresses, and events, and can be exported with the signed PDF for local archival or legal review.
• How do I troubleshoot integration failures?
  Check API credentials, webhook settings, and integration logs. Ensure OAuth tokens or API keys are valid, verify callback URLs, and review error messages returned by external systems. Reauthenticate or regenerate credentials if tokens have expired.
• How do I handle signer disputes?
  Provide the signed document and Audit Trail to show sequence of events. If additional proof is needed, collect related email confirmations and system logs. Consult legal counsel to determine next steps based on contract language and applicable laws.

Typical eSignature timeline

A simple signer timeline helps teams set expectations for sending, reminding, and closing signature requests.

01

Prepare Document

1–2 business days to finalize fields and recipient list.

02

Send Request

Immediate after preparation; recipients get email or SMS invite.

03

First Reminder

Set to send 48 to 72 hours after initial send if unsigned.

04

Second Reminder

Send one week after first reminder for pending signers.

05

Escalation

Escalate to manager or alternative signer after two weeks.

06

Expiration

Expire requests after a set period, commonly 30 days.

07

Close Workflow

Mark as complete once all parties have signed and files archived.

08

Audit Review

Perform compliance checks within 30 days of completion.

Where and how to sign

signNow works on modern web browsers, native mobile apps, and via API for embedded signing across platforms.

• Web browsers: Chrome, Edge, Safari supported
• Mobile apps: iOS and Android apps
• API embedding: REST API for custom apps

Ensure browser and app updates for best security, and configure API keys and OAuth for embedded or automated workflows.

Typical workflow configuration

Common workflow settings and suggested default configurations for signNow deployments in business environments.

Feature	Value
Signing Order	Sequential
Reminder Frequency	48 hours
Authentication Method	Email or SMS
Document Retention	7 years
Storage Location	Connected cloud

Feature availability comparison

A concise capability comparison between signNow and two common competitors for typical enterprise needs.

Feature	signNow	DocuSign	Adobe Sign
Bulk send capability
Mobile native app
Advanced auth options
Envelope cap limits	no cap	100 env/yr	varies

Pricing and core plan comparison

Pricing snapshot as of the current verified data date showing starting prices and key plan features for signNow and selected competitors.

	signNow	DocuSign	Adobe Sign	PandaDoc	HelloSign
Starting Price	$8/user/mo, annual	$8/user/mo, annual	$13/user/mo, annual	$19/user/mo, annual	$15/user/mo, annual
Free Trial	7-day free trial, no card	Varies by plan	Varies by plan	Varies by plan	Varies by plan
Bulk Send	Yes, premium plan	Yes, higher tiers	Yes, add-on	Yes, add-on	Yes, add-on
Audit Trail	Yes, built-in	Yes, built-in	Yes, built-in	Yes, built-in	Yes, built-in
HIPAA Compliant	Yes, BAA required	Yes, BAA required	Yes, BAA required	Varies by plan	Varies by plan
Envelope Cap	No envelope cap	100 envelopes/user/year	Varies by plan	Varies by plan	Varies by plan