Target Agrees To Pay Visa $67M Over 2013 Data Breach

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(Mike Mozart)

It’s hard to believe that it’s been nearly two years since cybercriminals breached Target’s in-store payment network and stole credit card data for millions of customers during the year’s busiest shopping season. Credit card issuers went after the retailer because they had to pay for the huge number of replacement cards that were issued to affected customers. Now it looks like Target and Visa have reached an accord that will put $67 million back in those card issuers’ hands.

The Wall Street Journal reports that both Target and Visa have confirmed the deal but won’t specify the amount. The $67 million figure is attributed to “people familiar with the situation.”

In the wake of the massive hack, which went on for weeks before being detected in late 2013, card issuers say they spent hundreds of millions of dollars issuing replacement cards and dealing with fraudulent charges tied to the breach.

In addition to Target agreeing to reimburse issuers the maximum amount that’s spell out in Visa’s terms, the Journal reports that the retailer is also offering to reimburse the banks for any fraud that stemmed from certain debit-card transactions — if the banks involved promise to not sue.

The affected banks will have to approve the Visa/Target deal. MasterCard-issuing banks recently rejected a $19 million settlement with Target, but the Journal says that the Visa deal already has the support of its largest card issuers.

by Chris Morran via Consumerist