Target Corporation (NYSE:TGT) approaches a settlement case with Mastercard Inc (NYSE:MA) for a reimbursement worth about $20 million.
The settlement nears after many days of discussion about reimbursement of the cost incurred in the 2013 colossal data breach. The cash recovered is supposed to be distributed to the affected financial institutions. The results of the deal are expected to be announced within the coming week.
The amount to be reimbursed is expected to absorb costs incurred by banks to fix the credit and debit card problems that occurred as a result of the breach. It will also take into consideration the losses that ensued the exposed client information.
Target reported that the number of compromised credit cards from the breach incident was well over 40 million. The report stated that over 110 people were affected. The attack that occurred during the holiday season is said to have stemmed the theft of private information in the form of phone numbers and email addresses.
The report from Wall Street Journal stated that MasterCard Inc. will disburse the amount from the settlement to the financial organizations that are licensed to issue credit and debit cards under the MasterCard brand. A few of the affected institutions include the famous JPMorgan Chase & Co. (NYSE:JPM), Capital One Financial Corp. (NYSE:COF) and Citigroup Inc (NYSE:C).
Financial organizations that use visa will not benefit from the MasterCard settlement. However, Target will engage with separate negotiations with Visa.
Earlier in March, Target had consented to a settlement in a similar data breach related lawsuit. The proposed settlement amount from the class action suit was $10 million. MasterCard however refused to comment on the matter, despite confirming that they have witnessed the same story.
The Visa Company also made no official announcements. A spokesman from Target declared that the company did not have any comments on the issue. The companies are trying to keep the details of their dealings under wraps to avoid further probing and controversies.