Lost revenue from fraud is on the rise. With 3D Secure your business doesn’t have to pay the price.
Here’s a sobering reality check: e-commerce fraud is set to cost merchants $28.76 billion in 2024 alone—and that number is expected to skyrocket to $43.63 billion by 2027, according to a report by Datos Insights. Yet many businesses are still playing catch-up with payment security, either because regulations differ from region to region or because they’re worried about complicating the checkout process for their customers.
That’s where Bluefin’s 3D Secure (3DS) authentication solution comes in. We’ve cracked the code on securing transactions without adding friction to the customer experience, drawing on our deep industry expertise and real-world merchant insights. Ready to discover how your business can stay ahead of payment fraud without sacrificing sales? Let’s dive in.
The Cost of Inaction: Why E-commerce Merchants Need 3DS
Running an e-commerce business without 3DS is like leaving your store’s front door unlocked overnight—you’re basically inviting trouble. Every time a customer makes a purchase on your site without 3DS protection, you’re taking on unnecessary risk. In fact, while in-store purchases get approved 98% of the time, online transactions without proper security measures only get approved 84% of the time. That’s a lot of potential sales slipping through your fingers.
And if something does go wrong? You’re on the hook for every fraudulent transaction. With fraudsters getting craftier by the day and chargebacks on the rise, your business can’t afford to go without this protection. According to IBM’s Cost of a Data Breach Report, the average data breach cost organizations an average of $4.88 million in 2024, up from $4.45 million last year.
Yet the cost of leaving your digital doors unlocked isn’t just about fraud losses—it’s about missed opportunities, damaged customer relationships, and unnecessary financial exposure.
What is 3D Secure?
3DS is a security protocol designed to provide an additional layer of authentication for online card payments, acting as a powerful shield for your business. The “3D” refers to the three domains involved in the authentication process: the merchant/acquirer domain, the issuer domain, and the interoperability domain (the payment system infrastructure). Here’s how it works:
When a customer makes an online purchase, the merchant can send a notification to the customer’s bank through 3DS. The bank can then:
- Risk-assess the transaction using sophisticated algorithms and customer data.
- If warranted, authenticate the user to verify their identity through various methods including biometrics, one-time passwords, or other secure verification methods.
- Approve or decline the transaction based on the authentication results. This entire process happens within milliseconds, providing robust security without disrupting the customer experience.
By creating this secure, real-time verification system between merchants, banks, and payment networks, 3DS acts as a virtual security checkpoint that helps prevent unauthorized transactions before they occur.
Regional Disparities: How Regulation Shapes 3DS Adoption Patterns
Despite being one of the most advanced protocols for protecting online transactions, adoption of 3DS varies by region due to inconsistent regulations. In Europe, the Strong Customer Authentication (SCA) requirement under PSD2 has accelerated 3DS implementation, making it a standard feature of online payments. This regulatory framework has led to higher adoption rates with 92% of UK merchants now supporting 3DS, according to the Datos report.
Unlike the UK’s national framework, the U.S. lacks uniform federal regulations for payment authentication. Instead, card schemes like Visa and Mastercard drive 3DS adoption through programs that penalize excessive chargebacks and fraud rates. Merchants with consistently high fraud levels can face fines or even lose their payment processing privileges. While U.S. businesses recognize the importance of protection—data shows a robust 88% adoption rate—implementation tends to be more selective and strategic.
The depth of implementation tells an even more nuanced story. While 70% of UK merchants send less than half of their e-commerce orders via 3DS, only 41% of U.S. merchants do the same. This selective use reflects the current fragmented regulatory environment in the U.S. However, with the Consumer Financial Protection Bureau signaling growing interest in additional authentication measures, the regulatory landscape may be shifting.
The Friction Myth: What the Data Really Shows About Customer Experience
Inconsistent regulatory practices aren’t the only barrier to widespread adoption. Some businesses worry about creating friction for the customers who have come to expect a quick, seamless online checkout experience.
However, data shows that 3DS secures online payments with minimal impact on customer experience. In the UK where customers are more familiar with 3DS authentication, 93% of merchants report abandonment rates of less than 15% when 3DS is triggered. In the U.S., 76% of merchants report similar low abandonment rates. According to Ravelin’s Global Payments Report 2025, global frictionless rates average 64%, indicating that many transactions can be authenticated without additional customer action. These numbers suggest that while customer friction is a valid concern, it’s manageable with proper implementation and customer education.
The Bluefin Advantage: Secure Payments Shielded From Fraud
Bluefin’s award-winning payment solutions offer all the benefits of 3DS, plus features that decrease friction at checkout and prevent revenue loss from fraudulent transactions. Explore all the ways our 3DS authentication solution gives your business an edge:
Frictionless Authentication
Bluefin’s solution sits directly on your platform, enabling your financial institution to verify that a cardholder is legitimate before processing the transaction. We’ve created an experience that doesn’t rely on pop-ups or create lag during checkout. Verification happens through risk-based authentication, occurring behind the scenes within milliseconds as customers enter their information.
Liability Protection
Bluefin 3DS gives your organization increased liability protection from charge disputes. When you implement Bluefin 3DS, “friendly fraud” chargeback liability shifts to the issuing bank. If a customer disputes a charge, your business is off the hook.
Fraud Defense
Adopting Bluefin’s 3DS solution can help decrease false declines and improve authorization rates, translating to more revenue for your business. Data shows that 29% of merchants leverage 3DS to minimize false declines that can cost up to five times more than actual fraud losses.
Seamless Implementation
Your customers aren’t the only ones who expect a fluid experience. Bluefin develops payment security innovations based on recognized industry expertise and deep understanding of the needs of e-commerce merchants like you. Your business requires seamless integration with your existing payment system that demands minimal time and resources. We offer multiple integration options including hosted payment forms, iFrames, and APIs. Plus there’s no additional development required beyond initial configuration.
A Frictionless Future is Possible
The projected cost of fraud may be turning up the heat for some e-commerce merchants, but with the right payment security solution you can ignore the forecast. Connect with our team to learn more about payment protection with Bluefin’s 3D-Secure solutions.
