Target Settles with MasterCard over Data Breach
Target has ended a dispute with MasterCard over the 2013 data breach at the its stores. According to CNet, Target will pay up to $19 million to credit-card issuers worldwide.
The money will compensate them for the costs of canceling accounts, creating new accounts and sending out new cards, CNet said. MasterCard is urging cards issuers to accept the deal, and Target has agreed to pay the card issuers by the end of the second quarter.
Target suffered a massive data breach in late 2013 in which 110 million customer records, including 40 million credit-card numbers, were stolen.
After the breach was discovered, Target informed financial institutions about cards that may have been compromised. Issuers, which include banks, credit-card companies and other financial firms, canceled accounts and issued replacement cards with new account numbers.
This deal is only with MasterCard. According to CNet, Target is negotiating a similar agreement with Visa.