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Usage

TRACT provides a flexible, powerful rating engine for rating and evaluating customer activity. For example, TRACT could support a subscription service that includes an initial start-up price and an adjustable fee based on the amount of data used. The structure for the usage-based charges can be constructed in allowance, tiered, tapered, multidimensional rating, sharing, and numerous other models so that your business can capture new revenue in the way that best suits your products.

The following page lists and details the available usage models in TRACT and provides links for further examples. Currently, usage rules and products must be designed in the original UI (TRACT 1.0).

To learn more about how to setup usage rules in TRACT, please see Usage Rule Creation Overview and Product-specific Usage Rules.

Usage Models

Allowances

Allowance: The customer pays a subscription fee for a pre-determined consumption amount called an allowance. The customer is still charged this same amount even if they do not meet the allowance that is tied to the subscription.

Allowance with overage charges: The customer pays a subscription fee for a pre- determined consumption amount called an allowance. If the customer consumes more than the allowance, a per event charge is applied to the event.

Allowance with overage charges and roll over: The customer pays a subscription fee for a pre-determined consumption amount called an allowance. If the customer consumes more than the allowance, a per event charge is applied to the event. If the customer does not consume all of the allowance, the unconsumed balance is added to the allowance for the next period.

Allowance with proration: Applying a proration to an allowance controls what percentage of the allowance the customer gets in the first period, provided the service was ordered after the period had begun. For example, assume a service provides an allowance of 30 API calls per month and is billed on the first of the month. If the customer subscribes to the service on the January 20th, the allowance for the month of January would be set to 10 API calls because only 30 percent of the period still exists. In February the allowance would be set to the normal 30 API calls.

Tiers

Standard Tier: A standard tier rating rule will charge all units based upon the rate assigned to the tier the most recent unit falls into. For example:

Gigabytes Consumed Price Per Gigabyte
0 - 50 $1.00
51 - 100 $0.75
101 - $0.50

Using the above table, if a customer consumes 40GB over the course of the service period, the charge will be $40.00 (40 X $1.00). If a customer consumes 75GB over the course of the service period, the charge will be $56.25 (75 X $0.75).

Flat Rate Tier: A flat rate tier charges a single price for the tier and does not apply the price to all of the events in the tier.

Using the same table above, if a customer consumes 40GB over the course of the service period, the charge will be $1.00. If a customer consumes 75GB over the course of the service period, the charge will be $0.75.

Tapers

Standard Taper: A standard taper rating rule will charge all units based upon the rate assigned to each tier that the usage falls into. For example:

Gigabytes Consumed Price Per Gigabyte
0 - 50 $1.00
51 - 100 $0.75
101 - $0.50

Using the above table, if a customer consumes 40GB over the course of the service period, the charge will be $40.00 (40 X $1.00). If a customer consumes 75GB over the course of the service period, the charge will be $68.75 ((50 X $1.00) + (25 X $0.75))

Flat Rate Taper: A flat rate taper charges a single price for the tier and does not apply the price to all of the events in the tier. Using the same table above, if a customer consumes 40GB over the course of the service period, the charge will be $1.00. If a customer consumes 75GB over the course of the service period, the charge will be $1.75.

Multidimensional Rating

Multi-dimensional rating is the ability to look at multiple attributes of the event, consult rating tables based upon those attributes, and compute an end charge. An example can be a ride share service that charges different rates for the size of the vehicle, the number of miles travelled, the amount of time consumed for the ride, and the current demand level (surge).

Sharing

Usage Allocation Pools: Usage Allocation Pools reallocate the charges to each user based on their overall usage so that the you can more accurately distribute the cost of services. A usage pool consists of services linked to an account from which the total pool is calculated. Each service in the pool has a usage allocation size. The size of the pool is the sum of the individual usage allocations for all services that are part of the pool. A Usage Allocation Pool can be for a single user or across multiple accounts in an account hierarchy.

Resource Sharing (Family Plans): The determination of which rating rules to apply to an event are derived from the Service Identifier assigned to the service. This identifier can be a license key, user name, phone number, etc. When sharing usage across multiple Service Identifiers all participants consume the allowance and then are charged for any applicable overages. For example, if a service has an allowance of 100GB and four users are sharing the service, none of the users will be charged any overage if the allowance cap is not reached.

Miscellaneous

Time Based: Service rates can be assigned effective dates. In this case, an event will be charged the table rate that corresponds with the rate that was in effect at the time the service was consumed.

Pass Through: Pass Through rating is the ability to take in a pre-rated event and apply that to the customer's allowance without changing the charge of the event.

Stored Value: A Stored Value is the ability to assign a value (typically a dollar amount) to a customer's service and draw down from that value as events are consumed. When the Stored Value balance falls below a pre-defined amount, the customer's payment method is automatically charged increasing the Stored Value. An example of this would be a toll road easy pass service. The customer starts out with a balance of $100.00 and each time they use the toll road, the balance is decremented by the toll amount. When the balance falls below $10.00, an automatic charge happens that sets the balance of the account back to $100.00.

Threshold Notification: A Threshold Notification is an alert or action that is triggered when a customer's allowance exceeds a pre-defined percentage of consumption. Threshold Notifications can be emails sent to the customer or they can be API calls sent to another application. Any number of Threshold Notifications can be applied to an allowance.

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