The cardholder data breach during the holiday shopping season at Target in 2013 is still in the news. It was announced that the proposed negotiated settlement agreement between MasterCard and Target fell through as issuers felt the amount was not reflective of their losses:
“The settlement was contingent on banks that issued at least 90 percent of the MasterCard accounts signing on to the agreement by May 20. Any bank that accepted the settlement was required to drop further claims against Target.”
Many issuers have expressed that losses from fraudulent debit card and credit card transactions, card reissuance expenses, call center call expenses run into the hundreds of millions in total.
With this event, banks will now pursue their claims against Target through a lawsuit. Target is still negotiating with Visa.
Overview by Sarah Grotta, Director, Debit Advisory Service at Mercator Advisory Group
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