The deadline for MasterCard-issuing banks to determine whether they will accept the network’s $19 million settlement with Target related to losses from Target’s 2013 data breach is Wednesday, May 20. Banks have until 5 p.m. EDT on Wednesday to send their opt-in information to MasterCard.
For all MasterCard issuers, the total reimbursement calculated under the Account Data Compromise rules was $26.7 million, which Target challenged, leading to the negotiated settlement that is 71.4 percent of the ADC amount.
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 ADC processes, which may be challenged by Target.
ABA neither endorses nor rejects the settlement and encourages its members to consider their options carefully before Wednesday’s deadline. Questions to MasterCard about the settlement may be emailed to [email protected]; MasterCard has told ABA that all inquiries to this address are being answered. For further information, contact ABA’s Molly Wilkinson.