Many have come across the term, "wet signature" but do not know what it means. In a nutshell, a wet signature is a process used to describe the signing of a paper or physical document, a form, or a contract. This is done with a pen and ink. It is also used to differentiate between pen signatures and electronic signatures which are also known as e-signature. But what is a wet signature?

Since before the dawn of the age of technology, people have been using wet signatures to bind contracts to prevent fraud. Although we now have electronic signatures that carry the same weight, many still prefer wet signatures because it's a trusted and tested tradition. In this article, we will explore all there is to know about wet signatures and how they differ from electronic signatures.

What Is a Wet Signature? How It Differs from Electronic Signatures?

Many have come across the term, "wet signature" but do not know what it means. In a nutshell, a wet signature is a process used to describe the signing of a paper or physical document, a form, or a contract. This is done with a pen and ink. It is also used to differentiate between pen signatures and electronic signatures which are also known as e-signature. But what is a wet signature?

Since before the dawn of the age of technology, people have been using wet signatures to bind contracts to prevent fraud. Although we now have electronic signatures that carry the same weight, many still prefer wet signatures because it's a trusted and tested tradition. In this article, we will explore all there is to know about wet signatures and how they differ from electronic signatures.

What Is The Difference Between A Wet Signature And An Electronic Signature?

Wet signatures have existed for much longer while electronic signatures are quite recent. E-signatures were first recognized legally in the United States in 2000, and not long after, many other countries adopted them. The US Congress passed the Electronic Signature Act (ESIGN) which allowed citizens to use and accept the same as a means of binding a contract. Every State in the Union where federal law is applicable accepts electronic signatures.

After the passage of the ESIGN Act, electronic signatures have become widely accepted internationally as a means of binding contracts both for individuals and businesses. However, while it serves the same purpose as a wet signature there are marked differences, and here are some of them.

Form: A wet signature is a physical signature signed by a person using wet ink while an electronic signature is a broad term used to indicate that a document has been signed by one or both parties using an electronic process.

Security: Wet signatures are not as secure as electronic signatures because there is no key protecting their duplication. Electronic signatures on the other hand use a cryptic certificate that binds the signature to the document therefore, it cannot be duplicated because of the public key infrastructure (PKI). This makes it a more secure signature than the wet version.

Industries That Require Wet Signature

While both forms of signature are accepted the world over, some industries have not completed the total transition from wet to electronic signatures. We know that industries like the healthcare industry are beginning to adopt new technologies to protect the privacy of their patients. Also, some banks allow customers to open accounts with them using electronic signatures as well. 

However, there remain a few that still have wet signatures as a requirement to validate contracts or documents due to their peculiarity. They are the real estate industry and government establishments. These organizations require wet signatures to prove identity and in some cases, ownership with physical documents only signed by hand.

When To Use Wet Signatures?

Ask when you should sign a document with a pen and ink. There are occasions where you'll have no choice but to use a wet signature to make a contract or document legally binding. If it is a requirement you'll have no choice especially when dealing with documents like adoptions, divorce, trust, court proceedings, wills, insurance benefits, or evictions of any kind. Due to the sensitive nature of these contracts, only a wet signature will suffice. 

In the case of electronic signatures, the signer has to consent to a document using electronic technology. So if the document or the recipient insists on a wet signature you should sign by hand accordingly.

Disadvantages Of Wet Signature

Appending a wet signature in a document is quite seamless but it also has its risks that you should know of. Forgery is a significant concern, as is the possibility of physical documents being lost, damaged, or accessed by unauthorized individuals. We discuss them below.

1. Delays: To receive or send a document signed by hand you are at the mercy of the delivery company handling the transportation process. Delivery and courier services only operate on business days, not on weekends and holidays. This delay will extend the time required to complete a business deal or registration process. Electronic signatures don't have this challenge as they can be completed within 24 hours.

2. Cost: The stationary cost also has to be factored into the entire process. Companies that work with physical documents will have to use paper which costs money to produce. Furthermore, the financial cost of such delays to get the documents from one point to the next leads to lost revenue especially if the deal can not be closed until they receive the signed documents physically.

3. Customer Satisfaction: For B2B and B2C businesses, this type of signature is not compatible with their business model because they operate under strict timelines. The delayed process may ruin the experience of their customers who will often sign and transfer documents immediately after they receive it but will have to wait for days or weeks for the other party to get the document. Such delays may ruin their user experience. This is why many online businesses opt for electronic signatures instead. 

4. Security: Frequent handling and transfers can lead to a security breach as the document can be tampered with, stolen, or lost in transit. With e-signatures, you never have to worry about this risk. Furthermore, the privacy of the customer or other party is also at risk.

Final Thoughts

A wet signature is a type of document signing process that requires ink and a pen to make a document legally binding. It is easy to implement but has its own risk. It is not as secure as an electronic signature that uses cryptic security certificates. You may choose to use one or the other for your documents but that will be down to the requirements you are expected to abide by. If the document in question requires a physical signature you should only sign it with a wet signature.