Electronic signatures have become essential to everyday business transactions, providing convenience and efficiency. However, with the increasing use of electronic signatures, ensuring they are legally binding and enforceable is vital. The Electronic Identification, Authentication and Trust Services Regulation (eIDAS) provides a common framework for electronic signatures in the European Union (EU) and European Economic Area (EEA), ensuring their legal validity and security.

What is eIDAS, and why is it essential for electronic signatures?

eIDAS is a regulation that sets out the rules for electronic transactions within the EU and EEA. One of its primary goals is to ensure that electronic signatures are legally valid, like handwritten signatures. Therefore, complying with eIDAS can protect an organisation’s reputation, help it avoid financial penalties, and dodge legal disputes.

The different types of electronic signatures under eIDAS

There are three types of electronic signatures under eIDAS: simple, advanced, and qualified.

Any electronic method that shows the signatory’s intention to sign a document creates a simple electronic signature. People often use simple electronic signatures for less critical documents.

Advanced electronic signatures must use specific technical standards and procedures that meet the requirements of eIDAS:

  • The relevant electronic signature solution uniquely links the advanced electronic signature to the signatory
  • Someone can identify the signatory from the advanced electronic signature
  • The signatory can maintain the advanced electronic signature under their sole control
  • Someone can detect any subsequent change to the signed data

Advanced electronic signatures under eIDAS are distinct from those under South African electronic transactions law, despite sharing the same name.

Qualified electronic signatures provide the highest security and trust and have the same legal effect as a handwritten signature.

Choosing the appropriate type of electronic signature for each use case is essential to ensure legal validity and security. However, it’s not as simple as selecting the most secure or legally effective type of signature. Qualified electronic signatures are generally more expensive than advanced electronic signatures, which are, in turn, more expensive than simple ones.

The benefits of eIDAS compliance for electronic signatures and customer trust

Complying with eIDAS requirements involves:

  • Providing clear information to your customers about how your organisation uses electronic signatures
  • Implementing appropriate policies and procedures related to electronic signatures
  • Using qualified trust service providers (TSPs) and obtaining electronic signature certificates when your organisation requires qualified electronic signatures or wants to take advantage of the benefits of using a TSP

These steps can improve your organisation’s electronic signature processes and build customer trust. Complying with eIDAS regulations is crucial for ensuring their legal validity and security. Therefore, organisations can effectively take advantage of electronic signatures in the EU and EEA to save time and money, reduce their carbon footprint, and increase customer trust, by understanding the different electronic signatures under eIDAS and taking appropriate actions to comply with its requirements.

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