Target close to reaching settlement with Mastercard over data breach, Diego Cuenca

Target is finalizing a $20m settlement with MasterCard over the effects of the 2013 breach of the retailers data. This comes after a $10m payment regarding a class-action law suit.

The settlement does not include financial institutions under the Visa brand which is being negotiated separately.

These series of legal disputes and payments indicate how data security breaches can affect all parties including consumers, retailers, and financial institutions.

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The $20 million covers costs that banks incurred to reissue credit cards and debit cards as a result of the breach, as well as some of the fraud that resulted from the exposure of customer information, the newspaper said. In 2013, Target said at least 40 million credit cards were compromised by the breach during the holiday shopping season, and the attack might have resulted in the theft of personal information, such as email addresses and telephone numbers, from as many as 110 million people. MasterCard will distribute the reimbursed funds to the financial institutions that issue credit cards and debit cards under its brand, including Citigroup, Capital One Financial and J.P. Morgan Chase & Co, the Journal said.

http://fortune.com/2015/04/14/target-nears-20-million-mastercard-data-breach-settlement/