MINNEAPOLIS, Minn.–Target Corp. has reached an agreement with Visa that, if approved, will reimburse card issuers as much as $67 million for costs incurred by the retailer’s 2013 data breach.
The company is reportedly working on a similar deal with MasterCard.
The settlement announcement comes two months after issuers rejected a $19-million settlement that Target had agreed to with MasterCard, a deal that would have required 90% of the financial institutions representing cardholder accounts to agree to the terms. The breach, which occurred when cyber-criminals were able to penetrate a third party’s system, exposed an estimated 40 million cards.
In a statement following the announcement of the agreement, NAFCU said more can still be done.
“This settlement is a step in the right direction but it still may not make credit unions whole,” said SVP-Government Affairs and General Counsel Carrie Hunt. “Credit unions deserve to be fully compensated for their losses.”
NAFCU also used the occasion to press Congress to move forward with legislation.
“We continue to urge Congress to act to protect consumers’ financial information by enacting national data security standards for retailers and holding them directly accountable for their data breaches,” said Hunt.