--- title: Will an Electronic Signature Hold Up in Court? description: The UETA and ESIGN Acts paved the way for safe electronic signature use for payments. image: https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/electronic-signature-legality.svg --- [tel:1-800-601-0230](tel:1-800-601-0230) 800-601-0230 - Features - Solutions - Developers - [Pricing](https://www.payjunction.com/payments/pricing.html) - Resources [See a Demo](https://www2.payjunction.com/tour-payjunction) Features - EXPLORE PRODUCTS [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) - ACCEPT PAYMENTS [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH Electronic Checks](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - EXPLORE CAPABILITIES [Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integration Marketplace](https://integrations.payjunction.com/) [Remote Signature](https://www.payjunction.com/payments/signature-capture.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) Solutions - [Veterinary Streamline payment workflows and get paid faster with up-front deposits and payment schedules for high-cost procedures. 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In comparison to the old process of mailing documents to obtain a signature or requiring a customer to visit your business, digital signatures offer an efficiency boon for businesses and customers alike. You’ve likely shopped at a business that had an electronic PIN pad that prompted you to sign on the screen instead of printed receipt paper. If you’re a business owner, this likely prompted you to wonder, “Are electronic signatures as legally binding as traditional paper signatures?” If you’re considering upgrading to a paperless credit card terminal, the answer to this question could be critical for your business because a signed receipt is necessary in the event of a [chargeback](https://blog.payjunction.com/fight-win-chargeback/). The benefits, however, are numerous. For one, collecting them eliminates the detrimental environmental impact of paper receipts, which consume tons of natural resources and produce waste (thermal paper receipts aren’t biodegradable). For another, they make it easy for businesses to obtain [signatures for remote orders](https://blog.payjunction.com/disputed-credit-card-charges-signature/), which defend them from chargebacks on phone and online transactions. The [benefits](https://blog.payjunction.com/signature-capture/) continue and sound great, but do electronic signatures hold up in court? The short answer is yes due to two important pieces of legislation: the Uniform Electronic Transactions Act ([UETA](http://www.uniformlaws.org/shared/docs/electronic%20transactions/ueta_final_99.pdf)) and the United States Electronic Signatures in Global and National Commerce Act ([ESIGN](https://www.fdic.gov/regulations/compliance/manual/10/x-3.1.pdf)). The main exceptions are: - Creation and execution of wills - Adoption, divorce and other family law - Uniform commercial code - Court documents For the purposes of this post, we’ll focus on payments, which are protected under federal law. ## Payment Processing Demo Schedule 15 minutes with a payments expert Get a customized PayJunction product walk-through Understand requirements and pricing Determine your SAVINGS! GET DEMO NOW ## The Protections Granted by UETA and ESIGN UETA was first introduced in 1999 to address legal requests for written signatures. UETA deemed electronic signatures a satisfactory substitute for a traditional signature so long as all parties agreed to proceed electronically. As a state law, UETA does not apply to the entire U.S.; 47 U.S. states, in addition to the District of Columbia and the U.S. Virgin Islands, have adopted UETA. The only states that haven’t enacted UETA are Washington, Illinois, New York and the U.S. territory of Puerto Rico, according to the [Uniform Law Commission](http://www.uniformlaws.org/Act.aspx?title=Electronic%20Transactions%20Act). The ESIGN Act, in contrast, is a federal law that applies to the entire U.S. The ESIGN Act was passed in 2000 and applies the same concept of recognizing an electronic signature as equivalent to a traditional one, but for expanded use cases beyond legal documents. In short, federal law recognizes electronic signatures as sufficient [authorization](https://blog.payjunction.com/credit-card-authorization) for credit card, debit card and [ACH payments](https://blog.payjunction.com/ach-payment-processing). ## Electronic Signatures Are More Secure Beyond some of the benefits we listed above, can electronic signatures provide even more security for your business? They certainly can. First off, they offer more evidence about the particular person who signed the receipt than traditional signatures do. For remote orders, electronic signatures track the location of the signer through his IP address. If a purchase is signed for internationally with a credit card that has a U.S. billing address, you can do your due diligence to follow up and ensure the purchase isn’t fraudulent. Electronic receipts are more reliable than traditional paper ones. They can be stored in the cloud and accessible with a simple search. This means you save precious time filing away receipts, transporting them to storage facilities and searching for one in the event of a chargeback. Most businesses hold onto paper receipts for up to seven years to prove authorization was granted. Over this time period, a thermal paper receipt is vulnerable to heat damage and fading, rendering it useless in a transaction dispute. ## Capture Electronic Signatures By opting for a Smart Terminal that accepts electronic signatures, your business can reduce its waste and paper receipt costs while obtaining authorization for every purchase regardless of where it occurs. The digital age isn’t going away anytime soon. Opting for a [future-ready Smart Terminal](https://blog.payjunction.com/customer-facing-terminal-benefits/) that’s customer-facing, accepts electronic signatures and moves your business into the digital age is a smart and lawful move. ## Learn more benefits of digital signatures. [![START WITH THESE 5](https://no-cache.hubspot.com/cta/default/635739/50f85187-b2c9-4ff5-9ce9-0fde8a6ecec8.png)](https://cta-redirect.hubspot.com/cta/redirect/635739/50f85187-b2c9-4ff5-9ce9-0fde8a6ecec8) Is your business still relying on paper receipts? Are you trying to reduce your environmental footprint? Let us know your thoughts on the topic discussed above in the comments section below. [Electronic Receipt](https://blog.payjunction.com/topic/electronic-receipt) [Paperless](https://blog.payjunction.com/topic/paperless) [Remote Signature](https://blog.payjunction.com/topic/remote-signature) [Chargebacks](https://blog.payjunction.com/topic/chargebacks) [Questions and Answers](https://blog.payjunction.com/topic/questions-and-answers) --- ##### [![How Level 2 Credit Card Data Impacts Interchange Fees](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/level-2-credit-card-data.svg) How Level 2 Credit Card Data Impacts Interchange Fees](https://blog.payjunction.com/level-2-credit-card-data) ##### [![What Defines PCI Scope?](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/pci-scope-defined.svg) What Defines PCI Scope?](https://blog.payjunction.com/pci-scope-defined) ###### About Author ![Picture of Christina Lavingia](https://blog.payjunction.com/hs-fs/hubfs/Christina%20Lavingia%2c%20Content%20Marketing%20Manager.jpg?width=200&height=200&name=Christina%20Lavingia%2c%20Content%20Marketing%20Manager.jpg) ### Christina Lavingia Christina Lavingia delights in crafting content that helps business owners fight fraud, reduce risk and process payments with ease. ###### Related Posts ## [![5 Benefits of Signature Capture](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/signature-capture.svg) 5 Benefits of Signature Capture Collecting a signature for a payment is pretty straight forward, right? You print a receipt, the customer signs it, you file the signed receipt and you’re done. Sure this works, but there are so many downsides to collecting signatures on paper receipts, including chargebacks, costs and damage to the environment.](https://blog.payjunction.com/signature-capture) ## [![Payment Processing Solution Trends: 4 To Know](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/payment-processing-solutions.svg) Payment Processing Solution Trends: 4 To Know We’ve come a long way since the day when payment options came down to the simple question of “cash or charge.” Whether your business is brick and mortar or online, there are numerous forces shaping your options for payment processing, from changing consumer preferences to new technologies. Trends for payment processing are evolving, and staying on top of the industry is important for providing secure, convenient customer experiences that also reduce your own business risks.](https://blog.payjunction.com/payment-processing-solutions) ## [![How to Search for a Transaction in the Virtual Terminal](https://blog.payjunction.com/hubfs/BLOG/FEATURED%20IMAGES/payjunction-search-how-to.svg) How to Search for a Transaction in the Virtual Terminal Welcome to PJ University, where we teach you how to use PayJunction like a pro. Today’s lesson is how to search transactions.](https://blog.payjunction.com/payjunction-search-how-to) ## Meet a Payment System You’ll Love - ###### FEATURES [No-code Payments Integration®](https://www.payjunction.com/payments/no-code-payments-integration.html) [ZeroTouch Terminal](https://www.payjunction.com/payments/smart-terminal.html) [Portable Terminal](https://www.payjunction.com/payments/portable-credit-card-reader-terminal.html) [Invoices](https://www.payjunction.com/payments/electronic-invoices.html) [ACH](https://www.payjunction.com/payments/ach-payments.html) [SmartSurcharge®](https://www.payjunction.com/payments/smart-surcharge.html) [Cards on File](https://www.payjunction.com/payments/store-credit-card-info.html) [Recurring Billing](https://www.payjunction.com/payments/recurring-payments.html) - [Ecommerce](https://www.payjunction.com/payments/ecommerce-merchant-services.html) [Customization](https://www.payjunction.com/payments/custom-payment-software.html) [Remote Signatures](https://www.payjunction.com/payments/signature-capture.html) [Rapid Refunds](https://www.payjunction.com/payments/credit-card-refund.html) [Multi-Location](https://www.payjunction.com/payments/enterprise-payments.html) [Sales Reports](https://www.payjunction.com/payments/sales-reports.html) [Search and Export](https://www.payjunction.com/payments/transaction-history-search.html) [Mobile App](https://itunes.apple.com/us/app/payjunction/id1324839420?ls=1&mt=8) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) - ###### RESOURCES [Product Overview](https://www.payjunction.com/payments/payment-processing-solutions.html) [Integrations](https://integrations.payjunction.com/) [Blog](https://blog.payjunction.com/) [Guides](https://guides.payjunction.com/) [Support](https://support.payjunction.com/) [Service Status](https://status.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) - [Trust Center](https://trust.payjunction.com/) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [Pricing](https://www.payjunction.com/payments/pricing.html) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) - ###### RESOURCES [Integrations](https://integrations.payjunction.com/) [Guides](https://guides.payjunction.com/) [Tutorials](https://blog.payjunction.com/tag/pj-university/) [API](https://www.payjunction.com/payments/payment-api.html) [Request a Demo](https://www2.payjunction.com/payjunction-demo) [About Us](https://www.payjunction.com/payments/about.html) [Careers *HIRING*](https://www2.payjunction.com/careers) [Press](https://media.payjunction.com/) [Trust Center](https://trust.payjunction.com/) [Service Status](https://status.payjunction.com/) - ###### BUSINESS SOLUTIONS [Auto Dealers](https://www2.payjunction.com/automotive-merchant-services) [Veterinary](https://www2.payjunction.com/payment-processing-veterinarians) [Dentistry](https://www2.payjunction.com/payment-processing-dentists) ##### 800-601-0230 SIGN UP FOR OUR NEWSLETTER  Become a better advocate for your business. 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