Target reaches agreement with Visa over data breach

Target will pay Visa card issuers up to $67 million in a settlement over a massive 2013 data breach, the retailer confirmed Tuesday.

Currently, companies say they are struggling to comply with the patchwork of state-to-state regulations.

The costs of the Visa settlement are already reflected in the retailer’s previously reported financial results, Target said on Tuesday.

“This settlement may be a start but much more needs to be done to make credit unions whole”, said Hunt.

The total losses from the breach will likely remain unknown for the card-issuing banks, and the total amount of fraud from the affected cards also remains unknown.

The exact amount of fraud that resulted from the Target breach still isn’t known.

According to WSJ, Target was satisfied with the deal, while Visa relayed that “this agreement attempts to put this event behind us”. Some of Visa’s biggest card issuers are said to be in support of the deal. According to Target, meanwhile, the cost of this settlement has already been covered by its previous years’ financial results.

“We are prepared to resolve the matter on comparable economics with MasterCard and its customers”, Target said in a statement.

A similar agreement with MasterCard for $19 million fell through earlier this year, but Vaaler says all parties could come back to the table after this latest deal. In addition, the company is spending $100 million to better secure its systems, including reissuing cards with a chip technology that is more hard to hack.

A hearing in that case is scheduled to take place September 10.

Mr. Zimmerman urged card issuers not to accept the portion of the Visa settlement that would prevent them from taking legal action against Target.