Advanced electronic signature: A guide for companies

Digitization enables companies to make their processes more efficient and simpler. Electronic signatures play an important role in the area of document and contract management. In this article, you will learn everything you need to know about advanced electronic signatures (AES) and the differences to qualified electronic signatures (QES).

Definition: Digital vs. electronic signature

“Electronic signature” is an umbrella term for procedures that record consent to content. The eIDAS Regulation distinguishes between three types of electronic signatures: simple, advanced and qualified.

The term “digital signature” is often used synonymously. In contrast to the electronic signature, however, the digital signature is not a legal term, but rather a technical process that verifies the identity of the signatory and guarantees the authenticity of a document. A certificate issued by a certification authority links the validation data of a signature to a person and confirms at least their name or pseudonym.

What is an advanced electronic signature (AES)?

An advanced electronic signature (AES) is a form of digital signature that offers higher security standards than a simple electronic signature (SES). According to Article 26 of the EU eIDAS Regulation, the advanced electronic signature must meet the following criteria:

(a) it is uniquely linked to the signatory;
(b) it is capable of identifying the signatory;
(c) it is created using electronic signature creation data that the signatory can, with a high level of confidence, use under his sole control; and
(d) it is linked to the data signed therewith in such a way that any subsequent change in the data is detectable.

With Certifaction, identification for the AES takes place via the signatory’s cell phone number. The identity is linked to the cell phone number, as you have to identify yourself when purchasing a SIM card.

Difference to the qualified electronic signature (QES)

The qualified electronic signature (QES) according to eIDAS is an even more strictly regulated form of electronic signature. The qualified certificate can only be issued by a certified body (trust service provider) and contains the unique identity data of the signatory, which has been verified by comparing the person’s ID card or passport. The QES has the same legal probative value as a handwritten signature and is required in cases where the written form is mandatory.

The main difference between AES and QES therefore lies in the legal probative value and the requirements for identity verification. The AES is not legally valid in cases where the written form is required. In all other cases, however, it is easier to use and more cost-effective than the QES, as there is no need for identification via a trust service provider.

Creation of an advanced electronic signature

An advanced electronic signature can be created with an eSigning tool such as Certifaction. Certifaction supports all signature types according to eIDAS (SES, AES and QES) as well as the specially developed PES and offers higher data security than providers such as DocuSign.

Step 1: To request a signature, the relevant document must be uploaded to the tool and the e-mail addresses of the signatories added. Optionally, Certifaction can also be used to specify the signing order.

Step 2: The signatories then receive a link to the document and can check it. To sign, they must enter their name and confirm their cell phone number. They receive a code via SMS.

Verification of an electronic signature

After signing with Certifaction, the signature card shows the name of the signatory and the type of signature used.

Signature cards Certifaction AES and QES

Signature cards from Certifaction: AES (left) vs. QES (right)

Even if you do not use special eSigning software, you can check signed documents. To do this, open the document in Adobe Acrobat Reader and call up the signature properties. In the case of a QES, you will now see the information “This is a qualified electronic signature […]” and the source of trust. In the case of an AES, the type of signature is not explicitly stated, but in the Certifaction example, the confirmed telephone number is listed as the reason. The trust source of the AES is not an official list of the EU.

Check QES validity with Adobe
Check AES validity with Adobe

Adobe Acrobat Reader, signature properties: QES (top) and AES (bottom)

Application of electronic signatures in practice

Electronic signatures can be used in a variety of documents and contracts. Not all parties have to sign electronically – a combination of a handwritten signature of one party and an electronic signature of the other party is also possible. However, due to better traceability, it is still advisable to use electronic signatures on both sides.

In Germany, the advanced electronic signature (AES) is a legally recognized alternative to a handwritten signature, as long as no specific formal requirements are stipulated by law for the document to be signed. For B2B contracts in particular, no special form is often prescribed, making using AES particularly advantageous.

For example, the AES is suitable for concluding sales contracts, placing orders, or agreeing on an open-ended tenancy. Although the simple electronic signature (SES) could also be used in these cases, it lacks the necessary probative force and document integrity compared to the advanced electronic signature.

Advantages and disadvantages of the advanced electronic signature

Advantages:

  • Security: The AES guarantees the identification of the signatory and cannot be manipulated as it recognizes any subsequent changes to data.
  • Efficiency: It speeds up signature processes and eliminates waiting times for mailing.
  • Cost savings: AES is very cost-effective compared to contract processing with handwritten signatures or QES.
  • Flexibility: It enables contracts to be signed at any time of day and without physical presence.

Disadvantages:

  • Identification: If there is any doubt about the identity of the signatory, the name provided must be checked against the mobile provider’s data. However, the provider’s data may be incomplete or incorrect. In addition, a court must first order the release of this information.
  • Legal validity: In cases where the written form is required, an AES is not sufficient. The QES must be used here.

Conclusion

Advanced electronic signatures offer an efficient, secure, and cost-effective option for companies that want to digitize their contract processes. While the AES is suitable for many B2B use cases, we recommend our PES (professional electronic signature) for B2C transactions. The PES identifies signatories beyond doubt using an ID document. However, if the written form is specified, you always need the QES.

The choice of signature type therefore depends on which legal requirements your company has to meet and how reliable you want the identification of your business partners to be.

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