Newsroom

MasterCard may be close to reaching an agreement with Target that is similar to the settlement announced Wednesday that would reimburse Visa card issuers as much as $67 million for expenses stemming from the retailer's 2013 data breach.

In a statement reported by BankInfoSecurity.com yesterday, MasterCard said, "We have been working closely with Target on this from the start, and they have indicated to us that the same approach and comparable terms are being made available to MasterCard issuers…We will now place the revised Target settlement offer in front of our customers for their consideration."

MasterCard's issuers would need to approve the settlement. In May, banks and credit unions rejected MasterCard's proposed $19 million settlement with Target, saying it was not enough compensation for breach-related expenses. Instead, they continued to push for more money through a class-action lawsuit.

An industry analyst quoted in the BankInfoSecurity.com article speculated that if Target settled with Visa issuers for $67 million, it would amount to about $2.80 per card. He estimated that the proposed $19 million MasterCard settlement would have given issuers $1.90 per card.

On Wednesday, Carrie Hunt, NAFCU senior vice president of government affairs and general counsel, called the Visa settlement a step in the right direction, but she said more needs to be done.

NAFCU will closely follow developments affecting MasterCard issuers, Hunt said Thursday.

Estimates related to the Target breach and the later one at Home Depot suggest issuers spent more than $350 million to reissue cards and address other issues related to the incidents.