There are fundamental differences between standard enterprise site licenses of business software such as your ERP system, payment processor per transaction fees, and the flexible Software as a Service (SaaS) subscription model.
You are probably used to payment service providers (PSP) charging you for every transaction based on volume. Now that PSPs are beginning to offer rudimentary tokenization, they are eager to tack on additional tokenization fees on top of every payment card transaction. That’s in addition to the cost of setting up your tokenization solution, the cost for converting your data to tokens, and—the ultimate insult—the cost of giving your token vault back when you decide you want to switch PSPs for better service. Even this last insult has a caveat in that a PSP may not be contractually obligated to return your token vault, thus making it even more difficult and expensive to change payment processors. Before giving in to your PSPs tokenization “deals”, scrutinize the contract to ensure that your data remains your data.
The TokenEx Data Protection Platform is a software as a service that uses a much more flexible subscription-based utilization pricing model that dynamically responds to your use of the tokenization and data vaulting services. While there are startup costs associated with setting up your token vault and payment processor links, once the initial batch of PAN-to-token conversion is complete, web service links activated, and payment gateways tested, the service begins, with no additional costs to access your tokens or PANs. You know what your yearly subscription is going to cost regardless of spikes in volume. You are only charged a conversion fee when you add new PANs and tokens to the vault.
This is a critical differentiator of the TokenEx pricing model—you are never charged to access—or reclaim—your token vault. Since the TokenEx Cloud Security Platform is payment processor agnostic, you can switch PSPs at any time. In the unlikely chance the new PSP is not already supported by TokenEx, a minimal one-time charge for gateway reprogramming may apply. Or if you are using the TokenEx Transparent Gateway, you do the re-programming yourself with a simple change to the HTTP message header, with no charges from TokenEx for switching among PSPs of your choice, anytime you wish. If for any reason you need to remove your tokens from the TokenEx Data Protection Platform, there is no charge for safely delivering your token vault to you in a useable format. (By the way, while this is our policy, we have never had a customer leave our services.)
Speaking of happy customers, our professional services for implementation and project management, testing services, and 24×7 support, are all built into the subscription pricing plan. You don’t pay extra when you need help the most.
The foundation of the TokenEx Data Protection Platform pricing model is an annual license fee based on the number of your tokenized records stored within our secure data vaults. The tokenized records are grouped into volume tiers with different levels of pricing—e.g., up to 1 million, from 1-5 million, 5-10 million, etc. As you increase your utilization of the TokenEx Data Protection Platform by increasing the volume of records stored in your data vault, your annual costs progress through the pricing tiers. However, pricing is not linear, so as you add volume, the price per record actually decreases.
If you decrease utilization by reducing the overall record volume within the TokenEx platform, your pricing goes down as well. Unlike PSPs who charge you to create a token and a fee every time you access a token that is already stored in the vault, TokenEx only charges for the creation and storage of each token, not their use. Because the pricing is elastic, you don’t pay for services or storage that you’re not using. This enables you to manage your costs with TokenEx.
Are you concerned that a dramatic increase in payment transaction volumes would catapult you into a new pricing tier? The number of your payment transactions spike throughout the year as holidays come and go, or as special events drive donations. One of TokenEx’s Not-For-Profit clients had a huge spike in donor contributions after a call to action following a natural disaster. They were concerned that the dramatic increase in volume would catapult them into a new pricing tier. Much to their relief—and ultimately the disaster victims’ benefit—that’s not the way TokenEx pricing models work. Essentially, spikes and anomalies are not penalized in our pricing model because the volume thresholds are large enough to account for any sudden changes. Compare that with your PSPs per transaction pricing and see how much that can save you.
Capital Expenditure Option
The regular and predictable payment cycle of SaaS subscription models is often seen as a major benefit, as it keeps payments consistent and easier to budget. Due to their financial structure, some organizations prefer to account for their software usage not as an operating expense, but as a capital expenditure, much like an initial ERP license.
TokenEx offers a license model to accommodate customers preferring to account for tokenization and data vaulting services as a capital expenditure. TokenEx will annualize the cost of your monthly subscription and bill that as a yearly software license. Towards the end of the license term, we review utilization for the year and adjust the next year’s license accordingly.
Unlimited Utilization Option
Some large enterprise clients have very large transaction volumes—or they are storing other types of sensitive data in their vault—so they prefer unlimited utilization of the TokenEx platform. Our pricing model can accommodate these requests as well. If you are unsure of the volumes you will generate, but know that the volumes will be very large, TokenEx will design a customized pricing structure for you.
This unlimited model is an appropriate option as organizations realize the value in tokenizing all types of sensitive data and storing it in TokenEx data vaults. While payment data used to be the main target of hackers, you can see from the latest security bulletins that PII and PHI data are becoming more of a target as identity theft becomes more lucrative to thieves. Storing personal and heath data can be just as toxic to your business as payment data if it is siphoned from your IT systems. Tokenization relieves you of that additional risk. Be aware that your PSP only tokenizes payment data, leaving other forms of sensitive data in your business systems. The TokenEx Data Protection Platform is the only secure way to store all types of sensitive data.
In summary, because each organization has different data security needs, and TokenEx customizes services to match specific business requirements, we work with each organization to create an individualized quote. TokenEx strives to make sure our pricing is easy to understand and transparent. If you do not understand a quote or a statement of work we provide to you, we will make time to ensure you completely understand how our pricing works. You’ll have complete visibility into what your costs look like using the TokenEx Data Protection Platform. Call us at 1.877.316.4544 or email us to set up an appointment to discuss your specific data security challenges.