Target to pay Visa issuers up to $67M over breach
Target (TGT) will pay Visa (NYSE:V) card issuers up to $67 million in a settlement over a massive 2013 data breach, the retailer confirmed Tuesday.
The agreement-first reported by Dow Jones-would follow the rejection of a proposed $19 million deal with MasterCard (MA), which needed approval from 90 percent of banks representing affected cardholder accounts.
"Target is pleased that we have reached a settlement agreement with Visa related to the data breach we experienced during the fourth quarter of 2013," the company said in a statement.
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The settlement brings another step of closure to the retail giant after one of the largest data breaches in recent years, which exposed about 40 million credit and debit cards. The settlement costs were already reflected in Target's 2013 and 2014 results.
The deal with Visa will not require approval from a certain percentage of card issuers. In a statement Tuesday, a lawyer for the card issuers claimed the the deal did not go far enough to recoup losses.
"Importantly, it fails to fully reimburse card issuers for the substantial losses suffered from the Target data breach," said Charles Zimmerman of Zimmerman Reed, co-lead counsel for the plaintiffs.
Target is scheduled to release its second-quarter results and hold a conference call Wednesday.
-CNBC's Courtney Reagan contributed to this report
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