Target (NYSE:TGT) has reached an agreement with Visa that will reimburse card issuers up to $67 million for costs incurred by the retailer's data breach during the 2013 holiday season.
The deal covers credit cards and debit cards issued by financial institutions under the Visa brand. It took months of negotiations, and the specific dollar amount of the deal has not yet been disclosed, The Wall Street Journal reported.
Target's breach exposed 40 million credit and debit cards to fraud and more losses to card-issuing banks. The total amount is still unknown, but the community bank and credit unions estimate they have spent more than $350 million to issue cards related to the breach.
Two months ago, a $19 million settlement between Target and MasterCard was rejected due to the banks representing the cardholder accounts. This time around Target appears to have support from Visa's largest card issuers.
Target is offering an incentive to issuers—a reimbursement for any fraud that stemmed from debit card transactions if issuers agree not to sue the big-box chain.
Retailers have been on high alert since the data breach at Target and other big retail names, such as Home Depot (NYSE:HD) and Staples (NYSE:SPLS). Although the amount of cyberattacks between 2012 and 2014 dropped 50 percent, the amount of records hackers stole rose 43 percent in the past year, according to a report from IBM security researchers.
-See this Wall Street Journal article
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