How do I ensure my customer approvals and deposit workflow with proposal software is compliant?

To make your customer approvals + deposit workflow compliant in proposal software, you want to cover contract formation, payment handling, recordkeeping, and signature validity. Here’s a practical checklist.

1) Make sure the approval is legally binding

• Use clear language like “Approve,” “Accept,” or “Agree to Terms” rather than ambiguous buttons.
• Show the customer the full proposal, pricing, scope, and terms before they sign.
• Include:
  • company legal name
  • customer legal name
  • effective date
  • scope of work / deliverables
  • total price
  • deposit amount and when it’s due
  • cancellation/refund terms
  • change-order policy
  • warranty / limitations, if relevant

2) Use e-signatures that meet e-sign laws

If you’re in the U.S., your process should align with:

• ESIGN Act
• UETA (for most states)

Best practices:

• Capture a clear audit trail: IP address, timestamp, signer identity, and consent
• Ask the signer to consent to electronic records/signatures
• Ensure the signer can review and download a copy
• Don’t pre-check acceptance boxes

If you operate internationally, you may also need to comply with:

• eIDAS in the EU
• local signature and consumer-protection laws

3) Treat the deposit correctly

Deposits can be regulated differently depending on:

• your industry
• your state/country
• whether it’s a deposit, retainer, or advance payment

Key compliance steps:

• State in writing whether the deposit is:
  • refundable
  • non-refundable
  • applied to final invoice
• Avoid calling something “non-refundable” unless your local law and contract terms support it
• Don’t collect a deposit before the customer has accepted the terms
• If you take card payments, make sure you follow PCI DSS rules and use a compliant payment processor

4) Include required disclosures

Depending on your business type and location, you may need:

• tax disclosures
• cancellation rights
• automatic renewal disclosures
• consumer financing disclosures
• permit/licensing info
• limitation of liability clauses
• jurisdiction/venue terms

If your customers are consumers, not businesses, consumer-protection laws are usually stricter.

5) Keep an audit-ready record

Store:

• signed proposal/contract
• version of the document accepted
• payment receipt
• deposit invoice
• timestamp of approval
• any emails/texts confirming acceptance
• change orders or revisions

This helps prove:

• what the customer agreed to
• when they agreed
• what money was collected and for what purpose

6) Make the workflow explicit

A compliant flow usually looks like:

1. Customer reviews the proposal
2. Customer accepts terms electronically
3. Customer signs
4. Customer pays deposit through a secure payment page
5. Both parties receive a copy of the agreement and receipt
6. Work begins only after acceptance + deposit, if that is your policy

7) Watch out for common mistakes

Avoid:

• vague “I agree” buttons with no contract attached
• accepting payment before the contract is signed
• hiding terms in small print
• changing the proposal after signature without a new acceptance
• using a deposit label that doesn’t match your actual refund policy
• storing card data yourself

8) Get legal review for your jurisdiction

This is especially important if you:

• work across multiple states/countries
• sell to consumers
• require large deposits
• use cancellation or restocking fees
• have subscription or recurring billing
• handle regulated services

A local attorney can review your:

• proposal template
• signature flow
• deposit clause
• refund/cancellation language
• privacy policy and terms of service

If you want, I can give you a compliance checklist for your specific country/state or help draft deposit and approval language for your proposal template.