The big box retailer has agreed to reimburse up to $67 million to settle Visa claims in connection to the massive data breach that struck Target in 2013.
Target Corp. has successfully reached an agreement with Visa Inc. to pay around $67 million in settlement for customer claims to financial institutions. These claims were data breach related which resulted in crash in the company in year 2013. The data breach had expose millions of debit and credit card numbers, which impacts Target’s reputation adversely with its users and damaged it revenues and sales.
The agreement reached with the company is on the behalf of all other banks and financial institutions that issue shoppers credit and debit cards. The settlement arrived when the financial merchants and the card industry have moved on with secure cards that have been planned to avoid such security issues in future.
The giant retailer is seeking to join forces with MasterCard Inc., in a similar sort of deal. While, this deal comes 3 months followed by another proposed deal valued at $19 million. The deal between Target and MasterCard fell through, due to the fact that some of the banks rejecting the settlement agreements. The agreement required the financial institutions approval that issued approximately 90% of accounts linked to Master Cards.
The data breach took place in 2013, which highlighted the company’s reputation and resulted in exposing around 40 million credit cards and debit cards to scam during the holiday season.
The data attack was the most high profile attacks to damage a retail company in years. The exceptional attack was part of the series of attacks at various other corporations and retailer, including Home Depot Inc., which includes theft of around 56 million credit and debit cards in September previous year. Other businesses include Staples Inc., China Bistro Inc., Neiman Marcus Group Ltd.
The exact amount of damages caused by the security breach in Target is not known until now. Credit Unions trade groups representatives’ projects that they have incurred more than $350 million up till now to reissue credit and debit cards to users and to deal with the reimbursement issues linked to the breach.
Target and Visa confirmed the settlement on Wednesday August 19, but have not disclosed the definite amount that is required to be paid for the settlement. The retailer said that the deal has previously received support from the largest card Visa card issuing financial institutions and banks.
The agreement with Target is a step in the right path for the giant retailer. It indicates that the company is trying to put the terrible incident behind it, during a time when the company focuses on an operational restoration to improve efficiency and move towards more secure and safer payment process.