Target nears settlement with MasterCard over data breach

Target (NYSE:TGT) is close to reaching a settlement with MasterCard over reimbursing financial institutions for the costs incurred by the retailer's data breach in 2013.

According to people familiar with the negotiations, the deal could be announced as early as this week and aims to remunerate financial institutions roughly $20 million.

The settlement will cover the costs incurred by banks that reissued credit and debit cards to consumers following the breach, as well as some of the fraud that resulted from the exposure of customer information, reported the Wall Street Journal.

The payout is similar to what TJX Companies (NYSE:TJX), the parent company of TJ Maxx, paid to MasterCard in 2008 for its data breach, which exposed more than 100 million cards.

Target disclosed that 70 million customers were affected by the breach and it cost the retailer $252 million in expenses. In March, Target agreed to pay $10 million to settle a consumer class-action lawsuit tied to the breach.

For more:
-See this Wall Street Journal article

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