What is a Wet Signature?

Definition of a wet signature

A wet signature is a handwritten signature made with a pen (wet ink) on paper. It is a traditional way of signing contracts, agreements, cheques, government forms, and other legal documents.

Marking a document with a wet signature indicates agreement to a document—making it legally enforceable. It is called a wet ink signature because traditionally, liquid ink was used in pens or stamps for signing. Since the ink took some time to dry, the signature was called a wet-ink sign.

Some of the most common ways to sign a physical document with wet ink are:

Present-day popularity of traditional wet signatures

Wet-ink singing is the age-old method of doing business. Whether it is a business document or a contract, physical signatures have always been the way to go for business executives. However, as more and more businesses are going digital, paper documents are becoming scarce.

Today, physician documents are replaced by paperless mediums like electronic documents. Consequently, businesses are moving from wet signatures to e-Signatures.

As per a report by Prescient and Strategic Intelligence, the global eSignature market size is expected to reach USD 12,721 million by 2030. This growing market size of Signatures indicates a rising preference for electronic signing and a declining preference for traditional, wet-ink signing.

According to a Docusign report, which is a leading name in signatures, two-thirds of businesses using electronic signatures have only adopted this method in the past two years. This trend indicates the rapidly growing popularity of digital signatures.

Currently, businesses use eSignature tools for signing their documents. For example, contract signing software helps sign contracts securely. Despite the rising popularity of electronic and digital signatures, wet signatures remain a popular choice. Let’s understand the benefits of wet-signing documents.

3 Top Benefits of wet signatures

Despite the growing adoption of digital signature tools, wet signatures have maintained their age-old popularity. Here are the benefits of wet-ink signatures:

1. Adds a personal touch to the document

A wet signature proves that the signer was physically present and intentionally signed the document. It adds a human element, making agreements feel more formal and personal.

2. Complies with  notary signing requirements

Many legal transactions, such as real estate deals, wills, and affidavits, require a wet signature for notarization. Notaries verify the signer’s identity in person, ensuring the notarized document is legally binding and reducing the risk of fraud or disputes.

3. Ensures the authenticity of the signatory

A traditional handwritten signature is unique to the individual, making it difficult to forge. In case of legal disputes, handwriting experts can analyze ink strokes, pressure, and patterns to verify authenticity, offering a layer of security that digital methods may lack.

Because wet signatures add a personal touch, ensure authenticity, and meet legal requirements, they are still necessary in many situations. Let’s explore the cases that require physical signatures.

When are wet signatures still required?

Despite the rise of digital signatures, wet signatures remain essential in many situations where authenticity, legal compliance, and personal verification are critical. Here are some cases where hand-drawn signatures are still required:

1. When agreeing to specific legal documents

Legal documents, such as contracts, wills, and real estate agreements, require a wet signature to be considered legally binding. This ensures that all parties involved are genuinely committed to the terms outlined in the document, providing a clear record of their consent and intent.

2. To ensure compliance with laws and legislation

Certain laws and regulations like the Uniform Commercial Code (UCC) mandate the use of wet signatures for specific documents, including notarized affidavits, loan agreements, and various government forms. These requirements are in place to protect against fraud and ensure that the signer’s identity is verified, adding an extra layer of legal security.

3. When following non-digital signing practices

In some industries, such as legal, financial, and healthcare, organizations still prefer using wet signatures due to established practices and regulations. These sectors often rely on paper-based signing to maintain thorough records, ensure security, and comply with industry standards that may not yet fully accept digital alternatives.

These use cases of physical signatures establish their importance. However, traditionally signing documents also has certain limitations.

5 limitations of wet-ink signing

While wet signing has its benefits, there are several limitations to consider that may impact its efficiency and practicality in today’s digital world. Here are five key limitations of wet-ink signing:

1. Adds to the cost of signing

Wet-ink signing often involves additional costs, such as printing, postage, and in-person meetings for signing. These expenses can accumulate, especially for businesses that handle numerous contracts, making the process less economical compared to electronic signatures, which can be executed instantly and without physical materials.

2. Vulnerable to counterfeiting

Although wet signatures are considered authentic, they are still susceptible to forgery. Skilled forgers can replicate signatures, leading to potential fraud and legal disputes. This vulnerability can undermine the reliability of wet signatures in high-stakes transactions where security is critical.

3. Increases contract turnaround time

The process of obtaining wet signatures can be time-consuming, often requiring multiple parties to coordinate in-person meetings or mail documents back and forth. This can delay contract finalization, hindering business operations and decision-making compared to electronic signatures, which can be completed in seconds.

4. Compromises customer experience

The need for wet signatures can lead to a cumbersome experience for customers, requiring them to print, sign, and return documents manually. This inconvenience can frustrate clients, especially in an era when fast, efficient service is expected. A poor signing experience may negatively impact customer satisfaction and retention.

5. Difficult to store and retrieve

Physical documents with wet signatures require storage space and proper organization to ensure they can be easily retrieved when needed. This can be challenging, especially for businesses that manage large volumes of paperwork. Additionally, physical documents are at risk of damage or loss, whereas digital signatures can be stored securely in the cloud, providing easier access and backup options.

Overall, while wet-ink signatures serve important legal purposes, their limitations highlight the growing need for more efficient and secure signing methods in today’s fast-paced digital landscape.

What’s the solution?

Adapting to digital signatures can help streamline the signing process, reduce costs, enhance security, and improve the overall customer experience. Let’s compare digital vs wet-ink signatures to find out which one is better.

Comparison between wet signature and electronic signature

In the United States, the Electronic Signatures in Global and National Commerce Act (ESIGN Act), along with the Uniform Electronic Transactions Act (UETA), makes eSignatures legally enforcing, just like traditional signatures.

When choosing a method for signing documents, it’s essential to understand the differences between wet signatures and electronic signatures, as each offers distinct advantages and limitations.

In summary, while both wet and electronic signatures have their place, electronic signatures offer greater efficiency, security, and convenience, making them the preferred choice for modern businesses and digital transactions.

If you are looking for a contract singing platform, choose HyperStart CLM. This tool helps create legally binding signatures for contracts. With HyperStart CLM, you can agree to contracts 80% faster on the go. Book a demo today to learn more about HyperStart CLM’s eSignature capabilities, and get started with a 14-day free trial.