Report: MasterCard, Target Fail To Reach Data Breach Settlement

According to a Reuters report on Friday, MasterCard said it failed to reach a settlement with Target Corp. over claims related to the 2013 data breach in the fourth quarter that reportedly impacted at least 40 million credit cards.

In April, Target stated that it had agreed to reimburse about $19 million to financial institutions that had issued MasterCard-branded cards that were a part of the data breach.

However, the settlement was conditioned on eligible issuers representing at least 90% of the eligible MasterCard accounts accepting their alternative recovery offers by May 20. The 90% threshold was not reached, MasterCard told Reuters, with not enough banks accepting the deal.

A Target spokeswoman Molly Snyder confirmed the development, according to Reuters, and said the company had “nothing further to share at this time.”

At the time of the April announcement, Scott Kennedy, Target president, financial and retail services, had stated, “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.”