Target and Visa reach deal on data breach settlement

Out-Law News | 20 Aug 2015 | 4:05 pm |

Target and Visa have agreed a deal which will see the US retailer reimburse the payment card company and banks that issue Visa cards for some of the costs they incurred following a data breach incident in 2013.

Target could pay out up to $67 million as part of the proposed settlement, according to a report by The Wall Street Journal.

The deal relates to the fallout from a hacking attack on Target in 2013 which resulted in approximately 110 million of its customers' personal data being stolen. The credit and debit card details of approximately 40m of those customers were compromised in the attack. Target has faced legal action in the US from financial institutions and consumer groups over the data breach. 

Banks that agree to the Target-Visa settlement deal will be required to drop their involvement in legal action, according to a Reuters report. A number of Visa card-issuing banks support the proposed settlement, according to The Wall Street Journal's report.

Target and MasterCard previously agreed on a proposed $19m settlement in relation to reimbursement for data breach costs, however MasterCard-issuing banks failed to support that deal in sufficient number. Target said it is willing to negotiate a new settlement deal with MasterCard, according to The Wall Street Journal.