E-signatures aren't new — some companies have used them for years to save costs by improving internal workflow processes. But the e-Sign Act, which goes into effect Oct. 1, promises to make the use of E-signatures more widespread because of all the potential applications in E-commerce.

Forty states, including New York, have e-signature laws on the books to allow something other than ink on paper to be considered a valid signature.

Legal recognition of electronic signatures means that, if the certificate and service provider meet the security requirements, it will be assumed that the e-signature benefits from the same legal recognition as a hand-written signature.