What is a Third-Party Tokenization Service Provider?

In short, a third-party tokenization service provider provides services for creating, storing, and managing tokens to improve data security.

Tokenization is a process whereby sensitive data is exchanged for a different string (generally randomly-generated characters); the sensitive data is stored in a secure vault, and can only be retrieved by presenting the token. These tokens are created and used in place of your company’s sensitive data, reducing your time to release new products, your risk of data leakage, and your need to obtain certified regulatory compliance.

A third-party tokenization service provider (TSP) is a company with which you contract to provide both the technology to swap sensitive data for secure tokens, and the vault where the sensitive data is securely stored. 

Many third-party tokenization providers exist today, each offering different features and benefits for their customers.

What to Look for in a Third-Party Token Service Provider

Not all third-party providers are the same and it is important to seek a partner that offers you the best chance for success. When choosing a provider, consider the following:

• Data flexibility
• Risk reduction and compliance standards
• Plan and pricing scalability
• Predictable uptime
• Support and guidance

Data Flexibility

Any third-party token provider you work with should offer the flexibility for you to control your data, however your business needs to do so. Being locked into strict rules and standards that don’t mesh with your data architecture will cause headaches for your organization now and into the future. For instance, if you need to connect with several payment processors or gateways, an agnostic tokenization platform would be the way to go.

Likewise, you want to consider the potential costs of vendor lock-in, as the tech stack you choose now may not serve the organization well five years from now. Seamless integration with—and movement, if necessary, away from—partners and technologies is a must. Ensure you choose partners that give you the flexibility to grow and expand, and won’t make it a headache to leave.

Basis Theory believes it should be just as easy to migrate away from a service as it is to migrate onto a service. We provide a helpful guide that walks you through both migrating your data to Basis Theory and away from Basis Theory if needed.

Risk Reduction and Maintained Compliance Standards

Any company that handles sensitive data should adhere to strict security and compliance standards. For instance, a company that accepts, handles, or processes credit card data must maintain PCI DSS compliance, which protects cardholder data from theft. Since these compliance requirements are time-consuming and costly, businesses can benefit from partnering with a tokenization provider that has the expertise to achieve PCI compliance for clients. 

Compliance standards you may want to consider in a partner depending on the data you need to protect include:

• PCI Level 1 compliance
• SOC 2 certification
• HIPAA compliance
• IS0 27001 compliance

Security and privacy are built into Basis Theory’s DNA. We maintain compliance with all the above mentioned standards.

Pricing Plans That Scale with You

Choosing a partner that can scale with your growing organization is a must. If you are an early-stage startup, you want a partner that gives you a chance to build a proof of concept quickly with pay-as-you-go pricing. High-growth organizations want assurance that as their transactions increase, their partner can scale sustainably right alongside them - at an economical cost. 

At Basis Theory, we offer flexible, transparent pricing that can grow with your business and your data needs.

Predictable Uptime

As you seek a third-party tokenization service provider, you want peace of mind knowing that your sensitive data is both protected and accessible when you need it. You choose a partner to make data security easier for your company, not to have another service you must keep a watchful eye on day-in and day-out. You trust that the service will work as expected so that you can focus on building value-added features into your products and services.

At Basis Theory, we focus on achieving predictable uptime and provide a transparent look at the current status of our services.

Support and Guidance

Whether you are confident and ready to build your proof-of-concept right now, or need additional support to get started with tokenization, your third-party service provider should be ready and willing to assist. It should be easy to get started, get the answers you need, and to get live - without signing a contract or talking to sales.

Likewise, should you encounter issues - which is pretty much inevitable - you want a provider that can assist you quickly and effectively. 

At Basis Theory, our goal is for you to be successful. Whether you need help with implementation, are seeking more information, or simply want to chat through an issue, our team is ready to assist.

Choosing the Right TSP

As you begin your search for a third-party tokenization service provider, remember that each provider varies from the next. Consider the attributes that matter most to your organization: whether it is a provider that offers flexibility in data structure and pricing, or a provider that is predictable and compliant, or a provider that can handle all of the above and more.

With Basis Theory, we strive to offer a reliable, secure, and flexible solution for your data tokenization needs. Contact us today to learn more.