MINNEAPOLIS (8/19/15)--Target Corp. has reached an agreement with Visa to reimburse card issuers up to $67 million for costs related to a massive 2013 data breach experienced by the retailer. (The Wall Street Journal Aug. 18). Visa told CUNA Tuesday that it will be in contact with credit unions in the coming days if they are eligible for part of the settlement.
The agreement is meant to cover expenses that financial institutions incurred in the data breach, including the cost of reissuing cards and any fraud that resulted from the incident.
Target previously reached an agreement with MasterCard Inc. to pay financial institutions $19 million for costs they incurred in the data breach. But that proposed settlement failed to garner sufficient support from banks, Target said in May.
According to The Wall Street Journal, Target said that it has already received support from Visa’s largest card issuers, giving the settlement deal with Visa more certainty.
Target's data security breach compromised 40 million debit and credit card numbers and the personal information of as many as 70 million customers. CUNA’s 2014 research found that credit unions incurred $30.6 million in costs related to the breach--not including actual fraud costs.
For the latest on the case involving the Home Depot data breach, see “CUNA to file brief opposing dismissal in Home Depot case” in today’s News Now.