Secure e-invoicing (2/2): Choosing the best solution

Secure e-invoicing solutions and their benefits

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There are several secure methods for exchanging electronic invoices — from pan-European networks to specialised web applications — all offering a safer alternative to the high-risk approach of email transmission outlined previously.

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• Peppol: Peppol is a leading pan-European network that enables secure and standardised exchange of electronic documents, especially invoices. It ensures data authenticity and integrity, with encrypted transmission via certified access points. Participants are strictly verified, and data is exchanged in structured formats, which supports automated processing and drastically reduces the risk of fraud.
  
  You can learn more about Peppol on our dedicated Peppol page and in our blog posts: "An introduction to Peppol" and "How does Peppol work?"

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• Other secure networks and EDI connections: Beyond Peppol, there are other well-established networks and Electronic Data Interchange (EDI) solutions designed for the secure exchange of sensitive business documents. These systems often offer end-to-end encryption and rigorous security standards - typically used in direct 1:1 exchanges between companies with high invoice volumes.

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• Secure web applications (e.g. Banqup): Modern invoice management platforms frequently incorporate secure transmission mechanisms. These systems authenticate users, encrypt data transfers, and log transactions comprehensively, ensuring full traceability.

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Crucially, these verified transmission channels offer a major advantage in protecting against invoice fraud via email.

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Why secure e-invoicing networks matter

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Using secure transmission methods, particularly e-invoicing networks such as Peppol, is key to combating invoice fraud. These systems validate sender and recipient information, maintain detailed audit logs, and follow strict security protocols to minimise fraud risk.

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In the Peppol network, for instance, companies in Germany are identified using unique identifiers such as VAT numbers, routing IDs ("Leitweg-ID" for public bodies), DUNS numbers, IBANs or GLNs. You’ll find more about Peppol IDs in our blog "An introduction to Peppol".

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Another key advantage is that e-invoices cannot simply be forwarded like email attachments. Instead, they are delivered directly and exclusively to the recipient’s accounting system, greatly reducing the risk of data compromise.

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Your benefits from secure e-invoicing transmission

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As discussed in part one, secure transmission channels offer several important advantages in the fight against email invoice fraud.

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• Reduced phishing and invoice fraud: By verifying senders, secure channels make it far harder for fraudsters to issue fake invoices that appear genuine.

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• Tamper prevention: Secure protocols and technologies like digital signatures detect or prevent manipulation during transmission.

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• Protection against data theft and espionage: Encrypted channels safeguard sensitive financial information from unauthorised access.

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• Enhanced trust: Reliable e-invoicing builds trust between business partners, as both parties can count on the authenticity and integrity of exchanged documents

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• Compliance assurance: In many countries, secure invoice transmission channels are recommended or even legally required, especially in B2G (business-to-government) contexts. Using such systems helps businesses stay compliant.

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Besides secure transmission channels, digital signatures and seals also play a crucial role in the security of electronic invoices.

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Added security through digital signatures and seals

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Digital signatures and qualified electronic seals are critical components of secure e-invoicing, offering added assurance of authenticity, integrity and legal validity.

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But what exactly are digital signatures and seals? Let's take a closer look: A digital signature confirms a person’s approval of an electronic document - comparable to a handwritten signature - and has legal binding force. A digital seal is typically used by organisations to confirm a document’s origin and authenticity. Both signatures and seals use cryptographic methods for enhanced security.

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Under Article 3 of the EU's eIDAS Regulation (the EU-wide regulation for electronic signatures and trust services), three types of electronic signatures and seals are recognised:

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• (Simple) electronic signature: The most basic form - e.g. a scanned signature or typed name in an email. It means data in electronic form which is attached to or logically associated with other data in electronic form and is used by the signatory to sign.

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• Advanced electronic signature: Linked uniquely to the signer, created under their sole control, and able to detect post-signature changes. Often based on so-called public key infrastructure (PKI).

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• Qualified electronic signature/seal (QES): Created using a certified device and based on a qualified certificate. Legally equivalent to a handwritten signature across the EU.

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Digital signatures and seals offer numerous security benefits, including:

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• Verification of authenticity: A QES, which represents the highest level of security recognised by law across the EU, ensures the identity of the sender, guaranteeing that the invoice is genuine and not from a fraudulent source. The use of QES, therefore, creates a high level of trust in electronic invoicing.

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• Tamper detection: Advanced and qualified digital signatures ensure that any changes to the document after signing become immediately apparent, thereby preventing unauthorised changes and ensuring the integrity of the invoice data.

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• Legal recognition: According to the eIDAS Regulation, QES are equivalent to handwritten signatures and are legally binding across the EU, providing strong evidentiary value.

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The role of secure archiving systems

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Secure transmission and digital signatures are only part of the equation. Long-term security, legal (including GoBD) compliance and future fraud prevention also depend on audit-proof archiving. Modern archiving systems provide:

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• Immutability and tamper protection: In line with GoBD requirements, archived invoices cannot be altered. This is ensured using mechanisms like time stamps, hashes and access controls.

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• Long-term availability: Archived documents remain readable and accessible over the legally required retention period (usually 10 years in Germany), regardless of format or software changes.

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• Complete traceability: Every access, modification and process is logged for full transparency, as required by the GoBD.

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• Protection from data loss and corruption: Redundant storage and regular backups ensure continued data integrity, even in the event of technical failure or cyberattacks.

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Global variations in e-invoicing implementation

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Globally, the adoption of e-invoicing is advancing, and secure networks like Peppol are playing a key role. While the principles of authenticity, integrity and security are universal, implementation and legal requirements vary by country.

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Italy, for example, has mandated B2B e-invoicing since 2019. France is relying heavily on Peppol for its upcoming obligation. Germany now requires e-invoices compliant with the European standard (EN 1931), such as XRechnung and ZUGFeRD, as of 1 January 2025 (transitional regulations notwithstanding). Latin American countries like Chile, Mexico and Brazil are considered pioneers. The introduction of e-invoicing is also being driven forward in Africa, Malaysia and the countries of the Gulf Cooperation Council (GCC).

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International businesses must understand local e-invoicing rules to ensure compliance, efficiency and security. With email-based invoice fraud increasing, now is the time to make the switch. E-invoicing is a secure, cost-effective and globally accepted method of invoicing for your business.

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Conclusion: Put security first - invest in secure e-invoicing!

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Across both parts of this blog series, one message stands out clearly:

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While e-invoicing offers compelling benefits in efficiency and cost, security must be a top priority from day one. Insecure transmission methods - especially email - pose serious risks. By adopting secure networks like Peppol or other certified solutions, businesses can ensure authenticity, maintain data integrity and significantly reduce the risk of fraud. Investing in secure e-invoicing solutions is an investment in the security and future of your company.

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Ready to secure your e-invoicing processes and protect against fraud? Get in touch today to learn more about our secure e-invoicing solutions!

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