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Target agrees $19m deal with MasterCard to settle breach

Attack exposed 40 million of retailer's customers to financial fraud.

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Target has agreed a $19m (£12.8m) deal with MasterCard over costs incurred as a result of a massive data breach at the American retailer at the end of 2013.

The scheme will reimburse card providers forced to reissue MasterCard-branded cards in the wake of the attack, which exposed 40 million of Target’s customers to financial fraud and may have led to the theft of 110 million people’s personal details.

Scott Kennedy, president of financial and retail services at Target, said: "We are hopeful that Target’s agreement to pay up to $19 million to settle the claims of MasterCard and its issuers will result in a high level of issuer acceptance.

"Target intends to continue to defend itself vigorously against any assessments made by MasterCard on behalf of MasterCard issuers that do not accept their offers."

Issuers accounting for at least 90% of eligible account holders must accept the deal by May 20 for it to go ahead, with payment expected to be made by the end of the second quarter.

After months of negotiation MasterCard is recommending that the card providers accept the offer, but discussions with Visa remain ongoing, according to a Target spokesman.

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