Remember the major Target data breach that happened at the close of 2013? The one that was thought to involve the personal and/or payment details of up to 70 million customers? Well, Target has just announced that it has agreed a settlement with MasterCard over the matter.
Given the agreement, “alternative recovery payments” will be offered to those who had MasterCard issued payment cards affected by the breach, and MasterCard recommends the acceptance of those offers.
Target is stumping up to $19 million (£12.8 million) in compensation, and the money will be paid out providing that 90 per cent of the eligible MasterCard accounts accept the offer made to them before May 20.
Scott Kennedy, President, Financial & Retail Services at Target, commented: “We are hopeful that Target’s agreement to pay up to $19 million to settle the claims of MasterCard and its issuers will result in a high level of issuer acceptance. Target intends to continue to defend itself vigorously against any assessments made by MasterCard on behalf of MasterCard issuers that do not accept their offers.”
Given that everything goes through according to Target’s plan, the payments will be made before the second quarter of 2015 is out (i.e. by the close of June). Eligible issuers should get the full details on their settlement through in short order.