Founder, CEO
In the world of online transactions, trust is everything. But with rising fraud and evolving regulations, merchants in the US are facing more pressure than ever to secure their payment systems.
That’s where 3D Secure comes in.
Long considered an industry standard in the European Union and other regulated markets, 3D Secure (3DS) is now gaining traction in the US. It adds an additional layer of authentication at checkout—helping businesses reduce fraud, shift liability, and cut chargeback costs significantly.
Although adoption has been slower in the US compared to other countries, things are changing fast. And for businesses selling online—especially those handling card-not-present transactions—understanding 3D Secure is no longer optional.
In this article, we’ll break down:
3D Secure (or 3DS) is a protocol that adds an additional layer of security to online transactions, designed specifically to reduce fraud during card-not-present transactions—where neither the card nor the cardholder is physically present.
Instead of relying solely on credit card details, 3D Secure introduces an authentication step at checkout. That means customers are asked to verify their identity before the transaction goes through, often using:
It’s not just about asking more questions. The goal is to quickly determine whether a transaction is legitimate using signals like the device being used, purchase behavior, and issuing bank risk models.
When a transaction is deemed low-risk, 3DS allows it to go through without interrupting the user—what’s known as a frictionless flow. But when something looks off, the system prompts the user to confirm their identity through a quick authentication method.
Here’s what’s happening in the background during a 3D Secure-enabled purchase:
This process takes just a few seconds but makes a major difference in fraud detection—especially for e-commerce transactions and mobile payments, where traditional signals like physical signatures or chip readers don’t apply.
For many consumers, 3D Secure is nearly invisible—especially with newer implementations. On mobile browsers or in apps, 3DS2 can run entirely in the background for trusted purchases.
When extra verification is needed, users might see a branded screen from their bank asking them to confirm the purchase via Face ID, fingerprint, or a passcode. In some cases, they’ll approve the transaction in their banking app without even leaving the checkout flow.
In short: 3D Secure makes online purchases more secure without creating friction for most users.
For years 3D Secure had a reputation problem—especially in the US. The first version of the protocol (3DS1) was often clunky, slow, and unfriendly to users. Customers were redirected to unfamiliar pages, asked to enter static passwords, and frequently dropped out of the checkout process altogether. This resulted in increased transaction abandonment and frustrated merchants.
So while other countries—particularly in the European Union—pushed forward with 3D Secure adoption to meet strong customer authentication requirements, many US businesses held back. The tradeoff between security and customer experience felt too steep
That changed with 3DS2, a completely overhauled version of the protocol that prioritized speed, flexibility, and mobile compatibility. The updated version introduced:
This “frictionless flow” dramatically improved the customer experience, while still enabling issuing banks to block high-risk or fraudulent transactions in real time.
While 3D Secure still isn’t mandatory in the US, momentum is clearly building. Several factors are accelerating adoption:
Put simply, more US businesses are realizing that modern 3D Secure can reduce fraud without tanking conversion—and that waiting to adopt it could mean falling behind.
It’s easy to assume that 3D Secure is only necessary for massive enterprises or international retailers, but that’s no longer the case. If your business accepts online payments or you handle card-not-present transactions, 3D Secure is quickly becoming a baseline requirement.
Some businesses are more exposed than others. High-volume e-commerce platforms, digital goods providers, and subscription services all experience elevated rates of fraudulent transactions and chargebacks. When a purchase is disputed—whether due to real fraud or so-called “friendly fraud”—you’re often on the hook.
Here are a few examples of industries that tend to see higher-than-average chargeback rates:
| Industry | Average Chargeback Rate | Common Triggers |
|---|---|---|
| Digital Goods & Gaming | 1.5% – 2.0% | Account takeovers, subscription fraud |
| Travel & Events | 0.9% – 1.4% | Cancellations, high-ticket disputes |
| Subscription Services | 1.8% – 2.2% | Recurring billing conflicts |
| E-commerce Retail | 0.6% – 1.2% | Friendly fraud, shipping disputes |
In industries like these, even a small reduction in chargebacks can translate into significant revenue retention—not to mention time saved fighting disputes.
3D Secure doesn’t just reduce fraud. It also shifts liability for fraudulent transactions from the merchant to the card issuer, as long as authentication was completed successfully. That means fewer chargebacks, fewer losses, and less internal overhead.
Plus, by meeting the expectations of global consumers used to authentication flows in other countries, you’re enhancing trust and security for your brand—without fundamentally altering your checkout experience. Generally speaking, if you’re operating in digital commerce, 3D Secure offers one of the most direct paths to protecting your revenue and your customers.
If you're hesitant about implementing 3D Secure, you're not alone. Many businesses—especially in the US—have held off based on two persistent concerns: it hurts conversion, and it’s hard to implement. But both concerns are rooted in outdated assumptions.
This was true with the first version of 3DS. Redirects to unfamiliar bank pages, static passwords, and clunky flows were conversion killers. But the updated version we have been discussing was built with stronger consideration of the customer experience.
The protocol now supports risk-based authentication, which means that low-risk transactions are silently approved—no extra steps for the customer. When a challenge is needed, the process happens within the flow, often through biometric prompts, mobile banking apps, or one-time codes that are already familiar to most consumers.
In fact, businesses that adopt 3DS2 often report higher authentication rates and fewer abandoned transactions compared to older flows—especially when fraud used to trigger manual reviews or hard declines.
That depends on how you implement it. Many businesses rely on 3D Secure through their payment gateway, which can work—but also means vendor lock-in, limited flexibility, and little control over performance.
With third-party solutions like Evervault, implementation is both simple and scalable. You can add 3D Secure as a standalone service—independent of your payment processor—and tailor it to fit your checkout and risk model.
If you've decided that 3D Secure is the right move, the next step is choosing the right implementation. Not all solutions are created equal—and the way you integrate 3DS can make a great difference.
The ideal 3D Secure solution should:
Many gateway-provided 3DS tools fall short in one or more of these areas. They’re built to serve the needs of the gateway—not necessarily your specific business logic, fraud patterns, or user experience goals.
Evervault was built to solve exactly these problems. Instead of bundling 3D Secure inside a tightly coupled gateway or payment processor, Evervault offers it as a modular, standalone layer that works across multiple payment providers.
That means you can:
Whether you're trying to reduce fraud, stay ahead of regulatory trends, or unlock better revenue protection, Evervault gives you a flexible foundation to do it—without compromising on speed or security
For online merchants in the US, the modern version of 3D Secure offers a powerful upgrade to payment security. Whether you’re handling e-commerce transactions, recurring subscriptions, or any card-not-present payment flow, 3D Secure helps you authenticate users in real time—reducing fraud, cutting chargebacks, and protecting sensitive data before it becomes a liability.
Unlike older implementations that relied on clunky security questions and redirects, today’s 3D Secure supports fast, intuitive authentication processes. With tools like Visa Secure, customers can complete additional verification using biometrics or OTP’s—instead of answering security questions or dealing with outdated forms. It works for both credit and debit cards, and shifts liability to the issuer once the challenge is completed, so merchants stay protected.
The benefits are clear: fewer fraudulent transactions, higher trust, and a more secure experience for everyone involved. And with Evervault, you get all of this in a lightweight, developer-friendly package that works across providers—without vendor lock-in or complex rewrites.
If you’re ready to bring your payments stack up to speed, 3D Secure is one of the smartest ways to start.
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