Electronic signatures are the standard when it comes to business transactions today. They make it easier to finalize contracts, agreements, and approvals online, but it’s important to note that not all eSignatures are the same. Some industries and regulatory environments require the use of more than a simple electronic signature (SES) to ensure everything remains compliant and secure.

Advanced electronic signatures (AES) are the answer when you want a higher level of verification. It links the signer’s identity directly to a document, making sure you have more protection against fraud, and it’s legally enforceable in many jurisdictions.

In this article, we’ll cover everything you need to know about what an advanced electronic signature is, how it works, when you should use it, and how it compares to other types of eSignatures. To top it off, we’ll talk about how AES works within PandaDoc so you can streamline your document workflows.

What is an advanced electronic signature (AES)?

An advanced electronic signature, or AES, is a type of electronic signature that offers stronger authentication and a higher level of security than a simple electronic signature (SES).

There are certain criteria that a digital signature must meet in order to qualify as an AES under the eIDAS Regulation, which is the EU’s standard for electronic identification and trust services.

Here are the qualifications required:

• It’s uniquely linked to the signatory
• It’s capable of identifying the signer
• It’s created using electronic signature creation data that the signer can use under their sole control
• It’s linked to the signed data in such a way that any subsequent change to the data is detectable

To put it simply, an AES can prove who signed a document and confirm that the document hasn’t been altered since the signing.

How does an AES work?

An AES works by combining digital certificates and encryption technologies with the signer’s authentication details.

The signature process looks like this:

1. Signer verification – The signer’s identity can be confirmed using methods like a digital ID, password, or multi-factor authentication.
2. Signature creation – A unique cryptographic key (or private key) is used to generate the signature.
3. Binding to the document – The signature is locked to the document’s contents. So, if anything changes in the file after signing, the signature becomes invalid.
4. Validation – Recipients or third parties can verify the authenticity of the signature using the corresponding public key.

This cryptographic process ensures the signature is secure and can’t be tampered with.

How to create an AES

To create an AES, you typically want to follow these steps:

1. Choose a qualified trust service provider – Working with a qualified authority (CA) or trusted service provider that issues digital certificates is key.
2. Verify the signer’s identity – This may involve ID checks, video verification, official records, etc., depending on specific regulations.
3. Apply the AES to a document – It’s best to use a digital signing platform like PandaDoc to do this, so the signer can securely apply their AES to the file.
4. Store and manage the signed document – With the AES being legally valid, it needs to be stored securely for audit trails and compliance. This can also be done with the help of a document management platform.

Platforms like PandaDoc can handle much of the complexity that occurs behind the scenes. This means users can create an AES without needing deep technical expertise.

Benefits of AES

There are tons of benefits to using AES for your business.

Here are a few:

• Enhanced security – Cryptographic protections make AES way more secure than a basic eSignature, which you want when dealing with sensitive data.
• Legal compliance – AES meets EU regulation under eIDAS as well as other global regulations.
• Tamper detection – Any change to a signed document can be identified with AES.
• Improved trust – When you can promise authentic documents, your clients and partners feel more confident doing business with you.
• Scalability – AES is great for industries like finance, healthcare, real estate, government, etc., where compliance is top-of-mind.

When to use an AES

While not all transactions need an advanced electronic signature, it’s especially useful when:

• You’re working with sensitive or high-value contracts like banking agreements, intellectual property transfers, etc.
• It’s required by GDPR or eIDAS compliance.
• You want to have stronger proof of identity when dealing with high-risk documents and scenarios.
• You need to provide clear evidence in case of legal disputes.

When it comes to everyday agreements, a simple electronic signature might do the trick. But when you’re dealing with regulated industries or critical business operations, an AES will give you more peace of mind.

AES vs electronic signature (SES)

A simple electronic signature (SES) is the most basic form of an eSignature. It can be essentially typing your name, clicking “I agree,” or simply pasting a scanned signature. It’s very easy and widely used, but it’s not always the best for providing strong proof of identity.

An AES, on the other hand, requires identity verification and cryptographic binding, which means it’s more secure and legally defensible.

Want to dive deeper into SES and its uses? Check out our guide on electronic signatures.

AES vs QES

A qualified electronic signature (QES) is even more advanced than AES. It has everything an AES offers, but it also requires a qualified certificate issued by a recognized trust service provider.

A QES has the highest recognition under eIDAS and, across the EU, it’s considered the digital equivalent of a handwritten signature.

To simplify, think of SES as basic, AES as secure and advanced, and QES as the most regulated and legally binding version of a digital signature.

How AES works in PandaDoc

PandaDoc makes it easy to create and use an AES. Our platform integrates with trusted certificate authorities and authentication providers, which ensures all your advanced electronic signatures are secure and compliant.

Here’s how it works:

• Identity verification – Signers can authenticate their identity using secure methods.
• Encrypted signing process – AES signatures are applied with cryptographic keys, making them tamper-proof.
• Audit trails – Every AES-signed document comes with a full audit log, showing who signed, when, and how.
• Seamless workflow – PandaDoc integrates AES signing into your existing document workflows, so compliance doesn’t slow you down.

Using PandaDoc for your AES will help you close deals faster while staying compliant with international standards, meaning your business can stay protected against any potential disputes.

Learn more about PandaDoc’s enterprise-grade security.

The bottom line

While an SES is often fine for everyday transactions, an AES is critical when it comes to compliance, trust, and legal enforceability. And with PandaDoc, you can easily use AES in your document workflows so you can drive security and efficiency at once. Ready to see how PandaDoc can level up your eSignatures so you can stay secure and compliant as you scale? Request a free demo today.

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