Everything You Need to Know About 3D Secure in the US

Introduction

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:

• What 3D Secure actually does and how it works behind the scenes
• Why it’s become more effective and user-friendly over time
• Which types of US businesses are most vulnerable to fraud and chargebacks
• How 3D Secure can reduce risk without hurting the customer experience
• What to look for in a solution

What 3D Secure Actually Does

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:

• A one-time passcode (OTP)
• Biometric verification via their mobile banking app
• Or other forms of risk-based authentication

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.

How It Works Behind the Scenes

Here’s what’s happening in the background during a 3D Secure-enabled purchase:

1. The customer initiates the transaction by entering their card details.
2. The merchant’s payment system checks whether 3DS is supported by the card issuer.
3. If supported, a request is sent to the Access Control Server (ACS)—a system operated by the issuing bank.
4. The ACS evaluates the transaction and decides whether to challenge the user or approve it silently.
5. If challenged, the user completes the verification step and, if successful, the authorization proceeds.

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.

What It Looks Like for Users

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.

From Friction to Frictionless: The Rise of 3D Secure in the US

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

The Shift to 3DS2

That changed with 3DS2, a completely overhauled version of the protocol that prioritized speed, flexibility, and mobile compatibility. The updated version introduced:

• Support for biometric authentication, mobile apps, and one-time passcodes
• A risk-based authentication model that allows low-risk purchases to pass without challenges
• Faster performance and a more seamless checkout flow—especially on mobile browsers

This “frictionless flow” dramatically improved the customer experience, while still enabling issuing banks to block high-risk or fraudulent transactions in real time.

Why the US Is Catching Up Now

While 3D Secure still isn’t mandatory in the US, momentum is clearly building. Several factors are accelerating adoption:

• A spike in digital commerce and mobile payments since the pandemic
• Rising losses from fraud and chargebacks, particularly in card-not-present transactions
• Pressure from global consumers and partners who expect authentication standards already common in regulated markets

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.

Who Really Needs 3D Secure

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.

Businesses Most at Risk

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:

In industries like these, even a small reduction in chargebacks can translate into significant revenue retention—not to mention time saved fighting disputes.

Real Business Outcomes

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.

The Case for 3D Secure (Even If You’re Skeptical)

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.

“Doesn’t it kill conversion?”

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.

“Isn’t it a pain to implement?”

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.

Choosing a Smarter 3D Secure Solution

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.

What to Look for in a 3DS Provider

The ideal 3D Secure solution should:

• Support the latest protocol (3DS2) for better mobile and cross-platform performance
• Offer high authentication success rates without introducing unnecessary friction
• Handle risk-based authentication natively, allowing for frictionless flow where appropriate
• Integrate cleanly with your existing stack—without locking you into a single processor
• Scale with your business as your digital commerce footprint grows

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.

Why Evervault Works with Any Stack—Without Lock-In

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:

• Use 3DS on your terms, without being locked into a specific vendor
• Build custom logic to trigger authentication only when it’s truly needed
• Get faster authentication times and higher conversion by tailoring the experience to your customers
• Implement 3DS with just a few lines of code—thanks to Evervault’s developer-first API

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

Final Takeaway

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.