MasterCard and Target today announced a $19 million settlement of claims by MasterCard and its card issuers related to losses from Target’s 2013 data breach. The funds will settle claims from banks for operational costs — including costs from reissuing cards — and fraud-related losses on MasterCard-branded cards that MasterCard believes were affected by the breach.
The settlement is contingent on issuers representing at least 90 percent of eligible MasterCard accounts accepting offers through the settlement by May 20. Issuers that do not accept the settlement will have their claims determined by MasterCard’s internal processes.
If the settlement is completed, issuers who accept it are expected to be paid by the end of June. MasterCard will host three conference calls today to brief issuers on the settlement terms. The times and dial-in numbers for the calls are 8 a.m. EDT (800-230-1951), 12 noon EDT (800-288-9626) and 6 p.m. EDT (800-553-0273).
ABA continues to advocate with MasterCard and Visa for more timely payments after breaches with higher reimbursement levels for lower-volume issuers for future breaches. For more information, contact ABA’s Molly Wilkinson.