Target settles with Visa card issuers following massive data breach

Publish date:

Target has reached a settlement with Visa to reimburse card issuers following the Minneapolis-based retailer's massive data breach during the 2013 holiday shopping season.

The Wall Street Journal, citing people familiar with the situation, reports the settlement is for up to $67 million.

"Target is pleased that we have reached a settlement agreement with Visa related to the data breach we experienced during the fourth quarter of 2013," the company said in a statement to CNBC.

In a statement to Bloomberg, Visa said this agreement "attempts to put this event behind us, and increase the industry’s focus on protecting against future compromises with new technologies."

This deal is for much more money than Target's $19 million settlement with MasterCard, which banks rejected back in May because the amount was too low.

Visa told Target Monday that most banks and card issuers it represents agreed to the $67 million amount, the retailer said, according to the Star Tribune. But unlike the MasterCard settlement, this one does not require approval from a certain percentage of card issuers, CNBC notes.

The data breach resulted in 40 million payment cards being compromised. In the wake of the data breach, Target has started accepting chip-reading cards at its stores for added security.

Next Up