Target Reaches Settlement with Visa on Massive Data Breach
Nearly two years after the Target data breach that affected 40 million credit and debit card accounts in America, the retailer has finally reached a settlement with Visa for “up to $67 million.” The two companies did not release the exact amount of the settlement.
Before this settlement, Target had paid approximately $162 million in fees, security improvements and reparations related to the 2013 breach. This could make the net expenses upwards of $229 million, if the estimates for the Visa agreement are correct.
In May, MasterCard attempted to enter a similar agreement with Target for $19 million, but it fell through due to a lack of support from banks and credit unions. That deal required the approval of 90% of the financial institutions representing cardholder accounts affected by the breach. Many of those institutions chose not to abide by the settlement because they wanted to receive more money from Target.
One group currently has a class action against the retailer set for September 10th, alleging that Target’s settlement is an attempt to avoid reimbursing their customers and affected financial institutions in full.
Visa released a statement about the settlement, saying, “Visa has worked to help Target reach a resolution for the expenses incurred as result of the 2013 compromise….This agreement attempts to put this event behind us.”