MasterCard Reaches Agreement with Target to Provide Issuers Up to $19 Million for Data Breach Claims
April 15 2015 - 5:30PM
Business Wire
MasterCard today announced it has reached a settlement with
Target Corporation to resolve claims by MasterCard and its issuers
related to the retailer’s 2013 data breach.
Under the agreement, Target will make available up to $19
million in alternative recovery offers to eligible banks and credit
unions across the globe. These funds will settle their claims for
operational costs and fraud-related losses on MasterCard-branded
cards believed by MasterCard to have been affected by the data
breach. Upon accepting the offer, each issuer will release
MasterCard, Target and its acquiring banks from all claims related
to the data breach.
“We believe this settlement provides our issuers a reasonable
resolution of the Target data breach event,” said Eileen Simon,
chief franchise integrity officer, MasterCard. “The timely
reimbursement of costs and losses under the agreement delivers
MasterCard issuers a faster and more certain resolution to the
event, while reinforcing our commitment to maintain the integrity
of industry security standards.”
The settlement is contingent on, among other things, issuers
representing at least 90 percent of the eligible MasterCard
accounts accepting their alternative recovery offers, either
directly or through their sponsoring issuers, by May 20, 2015.
Issuers that choose not to accept this offer will have their
claims determined by MasterCard internal processes. They may
receive more or less than the amounts offered in this settlement
depending on various factors, including MasterCard’s final
determinations of their claims and the outcome of any litigation
that Target may file to challenge claim awards to issuers outside
of this settlement.
If the settlement is carried out, accepting issuers will be paid
by the end of the second quarter of 2015.
Within the week, all MasterCard issuers eligible to participate
in the settlement will receive details on the settlement agreement,
including how to accept their alternative recovery offers.
About MasterCard:
MasterCard (NYSE:MA), www.mastercard.com, is a technology
company in the global payments industry. We operate the world’s
fastest payments processing network, connecting consumers,
financial institutions, merchants, governments and businesses in
more than 210 countries and territories. MasterCard’s products and
solutions make everyday commerce activities – such as shopping,
traveling, running a business and managing finances – easier, more
secure and more efficient for everyone. Follow us on Twitter
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MasterCardSeth Eisen, 914-249-3153seth_eisen@mastercard.com
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