“Target Settles with Visa Card Issuers for Up to $67 Million”
Safe and Sound 08/19/15 By Elizabeth R. Gebarski and John L. Barlament
On Tuesday, August 18, 2015, Target announced that it reached a settlement with Visa card issuers to resolve claims arising from Target’s 2013 data breach. Under the settlement, card issuers could receive up to $67 million.
The Target data breach affected as many as 110 million Target customers. The customers were not on the hook for any unauthorized purchases, but the lenders were. In addition, these lenders covered the cost of issuing new cards. The Wall Street Journal reported that community banks and credit unions estimate that they have spent over $350 million to reissue cards and handle other issues related to the Target breach.
As opposed to a failed $19 million settlement with MasterCard in May—this time it looks like the settlement will stick. Target indicated that it has the support of Visa’s largest card issuers. Target is so confident in the staying power of this agreement that it claims to have already reflected the costs of the agreement in its previously reported fiscal 2013 and 2014 results.
As additional details become available, the Safe & Sound Blog will keep you informed.