Target nears $20m deal with MasterCard over data breach
American retail giant Target is reportedly nearing a $20m deal with MasterCard to settle the data breach in 2013.
The settlement to reimburse financial institutions includes 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 data, reported the Wall Street Journal.
The deal is expected to be finalized as soon as this week.
According to Target’s financial filing, the company has incurred $252m of breach-related expenses.
The Journal said that MasterCard will distribute the reimbursed funds to the financial institutions that issue credit cards and debit cards under its brand as part of the settlement.
The breach compromised 40 million credit and debit card accounts. Last month, Target agreed to pay $10m to settle a consumer class-action suit related to the breach.
Additionally, Target is holding similar talks with Visa, the report said.