Most BaaS platforms start out by outsourcing their 3D Secure Access Control Server (ACS) — and for a while, it works. But then the friction starts: integration bottlenecks, slow updates, black-box risk models, and rising per-transaction fees.
We’ve seen this pattern across the industry. At FinOn, where we work closely with fintechs and payment institutions to modernize their authentication infrastructure, it’s clear that the conversation is shifting. Teams want control. They
want visibility. And more and more, they want to bring ACS in-house.
Here’s why that shift is gaining momentum — and why it matters.
Authentication Experience Is a UX Bottleneck
Third-party ACS vendors typically offer limited room for customization. When users are pushed through clunky, unfamiliar challenge flows, it introduces unnecessary friction — and hurts checkout conversion.
An in-house ACS setup allows providers to fully control the authentication journey. From branding and layout to real-time logic adjustments, the experience becomes seamless and consistent with the rest of the product.
Risk Is Evolving — and Needs to Be Yours
Fraud patterns shift constantly. To effectively manage risk and improve fraud prevention, providers need real-time, dynamic models that combine device intelligence, behavioral analytics, and contextual scoring.
Outsourced ACS solutions abstract away this logic — and often lack transparency. In-house systems enable providers to own and evolve their risk models in alignment with real fraud trends and user behavior.
Latency Still Matters — Especially at Scale
For high-volume BaaS platforms operating across multiple geographies, milliseconds count. Each redirect to an external vendor introduces latency that affects authentication success rates.
By hosting the ACS internally — or strategically deploying it closer to the user via edge locations — providers minimize routing delays and reduce abandonment rates during checkout.
Compliance Is Getting More Demanding
With the rollout of PSD3, evolving SCA requirements, and increasingly strict data localization laws in regions like the EU, GCC, and Southeast Asia, compliance is no longer a simple checklist.
Owning ACS infrastructure allows for faster adaptation to new requirements, clearer audit trails, and more predictable control over sensitive customer data — which is essential for both internal governance and regulatory alignment.
It’s More Feasible Than You Think
Historically, in-house ACS meant long development cycles and high resource allocation. But modern tools have lowered the barrier to entry.
With modular EMVCo-certified platforms, API-first design, sandbox environments, and guided implementation, launching an in-house 3D Secure ACS is often a matter of weeks — not quarters. At
FinOn, we’ve helped providers go live in under six weeks while maintaining full compliance and control.
A Strategic Shift — Not Just a Technical One
Payment authentication is no longer just a security step — it’s a critical touchpoint that affects user experience, conversion, fraud outcomes, and long-term platform performance.
3D Secure has evolved into a business-critical layer of control. The real question many BaaS providers are asking isn’t “Can we build this?” — it’s “Why haven’t we?”
And the answer is changing.
As authentication becomes a core differentiator — not just a compliance task — more platforms are rethinking their setup. Moving ACS in-house is no longer a bold move. It’s a logical next step for those who want to stay competitive, responsive, and secure
in a rapidly shifting payments ecosystem.
