What is a Clickwrap Transaction Platform?

Clickwrap Transaction Platforms (CTPs) help companies secure transactions that are or have moved online and are purpose-built for high volumes of agreements.
Clickwrap agreement example

Definition: What is a Clickwrap Transaction Platform?

According to Aragon Research, "Clickwrap transactions replace electronic signatures with the act of clicking to check a box or on a button that includes acceptance language (such as “I Agree” or “Accept”)." 

Clickwrap Transaction Platforms can be used for three primary use cases:

  • Prepare, deliver, update, and audit clickwrap transactions across your business
  • Reduce legal fees and eliminate labor intensive processes like negotation of high volume agreements
  • Secure ecommerce transactions with vaulting and screenshots of clickwrap transactions
Why do you need a Clickwrap Transaction Platform?

In every business, there are various types of agreements that your company reviews, potentially negotiates or not, and executes. With the surge in e-commerce in 2020, enterprises are shifting more transactions to be online. Those transactions may have varying levels of complexity from simple e-commerce with standard terms and conditions, to highly complex, personalized agreements that need to be redlined and signed.

How is CTP different from esignature and Digital Transaction Management?

Digital Transaction Management and electronic signature solutions are designed to enable people to digitize paper-based processes that are more complex and still involve people.

Clickwrap Transaction Platforms enable fully digital, fully automated workflows with a content management engine powering every transaction, not a person or approval workflow that can get held up and deliver transactions from taking place.

Clickwrap Transaction Platform 2x2

Copyright © 2020 Aragon Research Inc. and/or its affiliates. All rights reserved.

The above graphic shows that Digital Transaction Management tools like electronic signature providers are better suited for a more complex, lower volume set of agreements.

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PactSafe is a trusted Clickwrap Transaction Platform for:

How does a Clickwrap Transaction Platform work?

Finalizes purchase graphic

Copyright © 2020 Aragon Research Inc. and/or its affiliates. All rights reserved.

The simplest example of a clickwrap transaction is when presenting a checkbox with a link to terms and conditions as part of a purchase. The buyer will check the box to accept the terms which represents manifestation of acceptance to the agreement, legally compliant by ESIGN law.

Clickwrap Transaction Platforms automatically version, tailor the agreement(s), publish terms online, track the connectivity of the checkbox and link to the actual published page, and can also capture screenshots of the page automatically.

The Uniform Electronic Transactions Act (UETA) was adopted by the National Conference on Uniform State Laws in 1999 and has since been adopted by 47 states. UETA predates ESIGN, but both lay out requirements for electronic signatures and electronic records to be afforded the same treatment as that of their paper counterparts - UETA at the state level, and ESIGN at the federal level.

Different ways to present clickwrap transactions

There are many different ways to present your clickwrap agreement, all of which can influence your conversion rate and the likelihood of your agreement being upheld in court, should the need arise.

Clickwrap agreement design and best practices

Some companies, such as banking sites or apps, embed the agreement they are asking you to sign on the page itself, forcing you to scroll through the agreement prior to accepting to ensure the signer can not dispute being presented the terms to which they agreed.

Clickwrap agreement example: Embedded

Other companies will require you to offer affirmative assent (check a box, or leave initials) at multiple points in the contract to call attention to certain clauses and affirm assent to them individually, as well as assent to the entire agreement. This is popular in leasing agreements, to call attention to special addendums or community requirements.

Still others, like most social networking sites or apps, will present multiple agreements that are accepted simultaneously through one, singular action of assent (like creating an account, or checking a box). These popular checkboxes generally have links to the agreement referenced, which hosted on another page entirely. In order to support this, companies will often leverage their own web CMS, but that can present its own issues and challenges. Common web CMS solutions are not typically conducive to legal content workflows, and that means best practices are unlikely to be followed. Management of terms specific to locales, different environments within your company, and even versioning of terms can prove to be difficult tasks if you are using a common web CMS for your legal content.

 

 

Implementing a Clickwrap Transaction Platform

Audit an existing clickwrap transaction in your business to assess the security, archiving, and screenshots:

  • What version of the terms and conditions did the customer accept?
  • What did the screen look like when they accepted?
  • Can we easily produce a document or set of documents ready for court proving all of this?
  • How easy is it to pull this information?

Based on your preparedness for each use case you run your fire drill for, you can quickly prioritize what clickwrap transactions may need more security or enhanced capabilities from a CTP.

Look at all the various contracts and high volume agreements that you have across the business with key inputs from your legal team, marketing, product, and IT. You can create two sets axes that help assess the value of where your opportunities for improvement may lie:

  • Identify high volume, lower complexity transactions that are low hanging fruit for optimization with a CTP
  • Map ease of implementation against the time savings and speed improvements delivered by optimizing a transaction workflow

Many transaction workflows require sales people, legal review, or finance-based approvals to complete. These additional steps decrease your time to revenue and have other operational impacts in your business.

Consider finding opportunities where you can optimize these workflows by:

  • Setting up dynamic, pre-negotiated terms that can be embedded into an automated workflow
  • Segmenting different types of agreements that are higher volume
  • Using code or CRM data from tools like Salesforce to streamline document generation and eliminate unnecessary steps

Want to learn more from the clickwrap experts?

Our team has read every case and established best practices by working with companies like Wayfair, DoorDash, Upwork, Extra Space Storage, and more. We'd love to help walk you through how you can present and manage clickwrap agreements that are legally binding and best for your customer experience.

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