Meanwhile, credit card issuers have also been speeding up the adoption of card chips on credit and debit cards to better protect consumers. The company is spending $100 million to ramp up security in its systems, including reissuing cards with chip technology. In addition to this deal with Visa, Target previously reached a $10 million settlement with customers under a federal class action suit, allowing some customers to get reimbursed up to $10,000 for losses, if they can provide the required documentation.įollowing the data breach, Target has been working to bolster its security and technology divisions and also focused on upgrading its cash registers to accept card chips in 1,800 stores. Unlike the MasterCard proposal, this Visa settlement will not require the approval of a certain percentage of financial institutions. The settlement required the approval of 90 percent of banks representing cardholder accounts, but this fell short. The settlement details have already been factored into Target's 20 results.Ībout three months ago, a proposed $19 million settlement between Target and MasterCard fell through after not enough banks and credit unions agreed to the terms. "Target is pleased that we have reached a settlement agreement with Visa related to the data breach we experienced during the fourth quarter of 2013," the retail giant said in a statement. Visa said “this agreement attempts to put this event behind us” as it concentrates on the move toward more secure payments, according to the Wall Street Journal. The Visa deal has also been accepted by major Visa issuers. In addition to the agreement made with Visa, Target plans to strike a similar deal with MasterCard.Īlthough the terms of the deal between Target and Visa have not yet been disclosed, both parties confirmed that a settlement has, in fact, been reached. The retail giant could pay as much as $67 million in pre-tax payments to reimburse thousands of financial institutions for expenses incurred from the breach. announced plans to settle claims with Visa over its massive data breach in 2013, which exposed 40 million debit and credit card accounts.