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Table of Contents

Lead Story

Closing the door to backdoor breaches


Industry Update

Verizon study calls for improved PCI security

Marketplace Fairness Act to even score online, offline

Congressional payments caucus a positive for industry

CFPB takes on consumer lenders, card market

Transact 15 highlights global trends in payments


Countering affiliate, aggregation fraud

Selling Prepaid

Innovation in gift card exchanges


NACHA seeks seat at mobile payments tabl

Patti Murphy
ProScribes Inc

Mobilizing the sales force

What Sweden can teach us about the future of payments

Kirsty Tull


Street SmartsSM:
Let's share stories, grow our businesses together

Jeffrey I. Shavitz
Charge Card Systems

Exiting your business

Vicki M. Daughdrill
Small Business Resources LLC

Apple Pay & Samsung Pay Contrast

Differentiate and build trust to stand out

Jeff Fortney
Clearent LLC

Oral promises and ISO contracts

Adam Atlas
Attorney at Law

Company Profile

Field Guide Enterprises

New Products

All-in-One Mobile POS app


Remote device management for IoT era

SUSIAccess 3.0
AdvanPOS Technology Co., Ltd.


Let go or get dragged


Readers Speak

Resource Guide


A Bigger Thing

The Green Sheet Online Edition

April 13, 2015  •  Issue 15:04:01

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Readers Speak

What is HCE?

I've heard talk about HCE. I know it has to do with mobile payments, but that's about all. How important is it?

Sherri Dogral, Merchant Level Salesperson


HCE stands for host card emulation, which is a relatively new type of software architecture that can be used to implement near field communication (NFC) payments. It is an on-device technology that permits a phone to perform card emulation on an NFC-enabled device without relying on access to a secure element. At this time, card emulation technology is more widely supported than HCE, but it requires accessing a device's secure element.

NFC is gaining traction in the mobile payments realm. And HCE received a big boost in 2013 when Google Inc. decided to support the technology in its KitKat OS. "Suddenly with host card emulation and cloud issuance millions of phones could be enabled for payment with a simple app update; a real game changer," wrote Kaushik Roy in The Sequent Blog ( "It is no coincidence that Visa and MasterCard announced work on HCE specifications this year as well.

This innovation opened an alternative path to contactless payments and other services that had no reliance on secure elements."

On a web page introducing its white paper Host Card Emulation 101, the Smart Card Alliance wrote, "Along with the greater flexibility HCE offers for service providers and issuers, comes advantages and trade-offs to the traditional secure element-based model and accompanying (required) ecosystem.  Some advantages include more direct control and fewer dependencies on other ecosystem players.  Some disadvantages include a less secure implementation and, possibly, a degraded end user experience in some cases.  The list of advantages and trade-offs will change as more HCE-based solutions are deployed, tested and used in commercial practice."

The paper is available for download at


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Spotlight Innovators:

North American Bancard | USAePay | Board Studios