Cut Costs and Boost Conversion: Why Smart PSPs and Orchestrators Are Bringing 3D Secure Server In-House

In today’s rapidly evolving payments landscape, smart Payment Service Providers (PSPs) and orchestrators are rethinking their 3DS authentication strategy. Faced with increasing fraud pressure, complex routing needs, and growing costs, many are choosing to take control of the 3D Secure Server (3DS Server) layer—by bringing it in-house.

The 3DS Server plays a critical role in initiating and managing secure cardholder authentication. It acts as the gateway between your checkout and the card issuer’s Access Control Server (ACS), orchestrating challenge flows, ensuring EMVCo and scheme compliance (Visa Secure, Mastercard Identity Check), and aligning with PSD2 regulations.

Why Leading PSPs Are Going In-House with 3DS Server

Traditionally, many PSPs and orchestrators have relied on third-party 3DS Server providers. But that’s changing fast. Let’s explore why bringing the server in-house is unlocking real advantages in high-volume, high-risk sectors like travel, e-commerce, gaming, and digital services.

1. Smarter Failover and Higher Conversion Rates

In a multi-acquirer environment, failover routing is crucial. Third-party 3DS setups often cause friction: failed authentications, repeated challenges, or rigid flows that hurt conversion.

With an in-house 3DS Server, PSPs and orchestrators gain total control of the authentication lifecycle. They can:

• Reuse a successful 3DS authentication across fallback acquirers
• Implement dynamic retry logic and cascading flows
• Minimize unnecessary challenges and avoid duplicate authentications

The result? Fewer failed transactions, lower abandonment, and significantly improved conversion rates.

2. Cost Efficiency at Scale

Third-party 3DS services often come with per-transaction fees, licensing costs, and feature-based add-ons. As traffic scales, so do the bills.

Hosting your own 3DS Server gives you long-term cost control. With FinOn’s licensing model, many clients reduce their 3DS costs by up to 30% over 2–3 years—without sacrificing compliance or performance.

3. Total Control Over Authentication Workflows

Black-box 3DS providers limit your ability to tailor flows or respond quickly to market changes. An in-house solution gives you the freedom to:

• Customize authentication by merchant, risk level, region, or transaction type
• Integrate natively with your fraud tools and payment routing systems
• Adapt instantly to scheme rule changes and new compliance requirements

More control = more agility, better performance, and a smoother user experience for your merchants and their customers.

4. Seamless Integration and Rapid Deployment

FinOn’s 3DS Server is built for modern PSPs and orchestrators. You can deploy quickly without compromising quality:

• EMVCo certified and compliant with Visa/Mastercard protocols
• API-first architecture for fast, flexible integration
• Scalable to support millions of monthly transactions

Whether you’re launching a new acquiring business or scaling a mature platform, FinOn helps you go live in weeks—not months.

Own the Future of Your Authentication

In-house 3DS Server is no longer a “nice-to-have”—it’s a competitive advantage. It lets PSPs and orchestrators control cost, performance, security, and user experience on their terms.

FinOn’s 3DS Server is already powering leading payment providers worldwide, helping them streamline authentication and increase approvals.

Ready to Bring Your 3DS Server In-House?

Take control of your authentication layer with FinOn. Whether you're optimizing your approval rates or reducing dependency on third parties, we can help.

Contact us or book a demo to learn how FinOn can make your 3DS authentication smarter, faster, and more cost-efficient.