Target Corp. and MasterCard Inc. are nearing a $20 million settlement to reimburse financial institutions for costs associated with the retailer’s massive data breach in 2013.
The $20 million is meant to cover the costs that banks incurred after having to reissue debit and credit cards after the breach, as well as the fraud that occurred after the exposure of shoppers personal information.
Target recently disclosed that the 2013 breach cost the retailer roughly $252 million in related costs. They are also in similar negotiations with Visa Inc., which is larger than MasterCard and could involve an even larger settlement.
MasterCard has been negotiating with Target on behalf of other financial institutions, which they will then distribute the settlement too. The largest recipients will be Citigroup Inc., Capital One and J.P. Morgan Chase.