Garry Klooesterman
Senior Technical Content Creator
Updated February 17, 2026
4 min
Your Guide to the ESIGN Act and Staying Ahead in Today’s Global Economy
Garry Klooesterman
Senior Technical Content Creator
Summary: From the early days of simple online stores to electronic signatures and the ESIGN Act, the way businesses conduct transactions online has evolved significantly over a rather short period of time. In this blog, we’ll look at the ESIGN Act, its guidelines, and how Apryse can help you ensure compliance.
Introduction
Electronic signatures have revolutionized the way businesses conduct transactions in today’s fast-paced global economy. The Electronic Signatures in Global and National Commerce Act (ESIGN Act) provides a legal framework for the use of electronic signatures in interstate and foreign commerce without compromising legal validity. From small businesses to large corporations, being ESIGN Act compliant is essential to stay ahead in today’s competitive landscape.
In this blog, we’ll explore what the ESIGN Act is, its guidelines, and Apryse’s Digital Signatures SDK solution to overcome electronic signature limitations and ensure compliance.
What is the ESIGN Act?
The ESIGN Act is a United States federal law that provides guidelines for handling electronic records and electronic signatures in online commerce, protecting anyone who makes an electronic transaction in the US and its territories.
Complying with the ESIGN Act
Complying with the ESIGN Act requires that electronic signatures meet some basic requirements:
- Intent to sign and consent: All parties must show intent to sign the record and agree to do business electronically.
- Signature association: Can it be proven that the signature belongs to the signer? A party must be able to provide the required information, such as details of the signer, date and time of the transaction, geolocation, IP address, and the authentication process.
- Record retention and consumer disclosure: It must be clear to consumers that they have the right to receive a copy of the transaction that is in a non-electronic format reflecting the original document, accessible to both parties, and available for later reference.
The limitations of electronic signatures
According to the ESIGN Act, electronic signature is defined as “an electronic sound, symbol, or process, attached to or logically associated with a contract or other record [electronic contract or document] and executed or adopted by a person with the intent to sign the record.”
The Act states that electronic signatures and records are equal to paper versions, in that, a contract or signature can’t be denied simply because it is in electronic form. But because an electronic signature doesn’t usually include any verifiable electronic information, there is no real way to verify that the signature is authentic or that the document was not altered after it was signed.
The solution is to use a digital signature.
Digital signature
During the digital signature process, a hash function creates a hash, “a specific string of letters and numbers that are guaranteed to always be the same output so long as the input data ... has not changed.”
Figure 1. A PDF document being used as input into a Hash Function to produce a Hash output.
The hash is then encrypted with the signer’s private key to create the digital signature.
Figure 2. The Hash of the PDF document is then encrypted with the Private Key to produce a Signed Hash.
The digital signature is then combined with a digital certificate containing the signer's public key into a PDF document.
Figure 3. The Public Key Certificate and the Signed Hash are packaged together, producing a PDF with a Digital Signature.
A digital signature can be verified by decrypting it using the signer's public key to retrieve the original hash. A new hash is generated from the document data using the same hash function. If the two hashes match, the data is considered to not have been altered since the document was signed, and so the digital signature is valid.
Check out our Ultimate Guide to Digital Signatures for a more detailed explanation of electronic versus digital signatures.
How can Apryse help?
The Apryse Digital Signatures SDK has the tools and features to overcome electronic signature limitations and ensures that your business complies to the ESIGN Act and other global regulations, such as eIDAS and UETA. Using certificate-based digital IDs, signers can authenticate their signature, validate signatures, and prevent tampering of documents.
Key digital signature features
- Certificate expiration and revocation: Use advanced encryption and secure digital certificates to protect documents. Signatures can be set to expire or be revoked for security.
- Document timestamping: Document timestamping guarantees a signature cannot be disputed as it allows signatures to be validated using the exact time they were applied. This can be done even after a certificate has expired or been revoked.
- Long-term validation: For legal and compliance requirements, signatures can still be validated even after an extended period.
- Modification detection and prevention: Prevent and control changes after the signing process is complete by embedding Modification Detection and Prevention permissions.
Conclusion
Whether you’re a small business or a large corporation, navigating the world of regulations, guidelines, and compliance can be challenging and feel complex. The Electronic Signatures in Global and National Commerce Act provides the guidelines for handling electronic records and electronic signatures without compromising legality. While we’ve focused on the ESIGN Act here, businesses must often comply with additional regulations, such as eIDAS compliance. To simplify the implementation of compliant digital signatures, Apryse offers a Digital Signatures SDK that helps overcome limitations and ensures compliance, keeping your business ahead in today’s global economy.
Try out our digital signature demo for yourself.
Have questions? Contact us to speak with an expert or even reach out on Discord.
