28 June 2017
visit http://events.sap.com/gb/fsi-forum-2017/en/home

MasterCard's $19m Target settlement falls through

22 May 2015  |  8147 views  |  0 STOP

MasterCard's $19 million settlement with Target over the retailer's data breach has collapsed in the face of opposition from banks.

Last month MasterCard announced that it had reached a settlement with Target to reimburse member banks for expenses accrued following the massive 2013 data breach at the US retail chain.

However, the deal upset counsel for banks, credit unions, and other payment card-issuing financial institutions, who are currently undertaking multidistrict litigation against the retailer.

The lawyers argued that the settlement was an effort to stymie their claims and tried to block it, but a judge rejected their effort.

However, according to Reuters, the settlement has now fallen apart anyway. The deal needed banks that issued at least 90% of the MasterCard accounts to back it by 20 May, thereby giving up any further claims against Target.

MasterCard confirmed to Reuters that it has not reached the 90% threshold, leaving the way clear for banks to continue their suit against Target.

Responding to the news, National Association of Federal Credit Unions general counsel Carrie Hunt says: "The failure to opt in to the settlement by financial institutions sends a strong signal to card companies that the current reimbursement system does not work and financial institutions need to be made whole."

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

MasterCard in the firing line over $19 million Target settlement

MasterCard in the firing line over $19 million Target settlement

17 April 2015  |  5579 views  |  0 comments | 7 tweets | 1 linkedin
MasterCard agrees $19 million settlement with Target

MasterCard agrees $19 million settlement with Target

16 April 2015  |  5795 views  |  0 comments | 10 tweets | 6 linkedin
Target takes $162m hit on data breach expenses

Target takes $162m hit on data breach expenses

25 February 2015  |  7165 views  |  0 comments | 15 tweets | 8 linkedin
Target fails to get bank lawsuit dismissed

Target fails to get bank lawsuit dismissed

03 December 2014  |  6257 views  |  0 comments | 6 tweets | 9 linkedin
Crook dumps Target card details on Russian forum

Crook dumps Target card details on Russian forum

17 October 2014  |  7988 views  |  0 comments | 6 tweets | 5 linkedin
Target chief information officer quits

Target chief information officer quits

05 March 2014  |  5586 views  |  0 comments | 6 tweets | 5 linkedin
Hacked Target hastens migration to chip cards

Hacked Target hastens migration to chip cards

05 February 2014  |  6569 views  |  0 comments | 4 tweets | 9 linkedin
Target hackers used POS malware to steal card details

Target hackers used POS malware to steal card details

14 January 2014  |  6907 views  |  0 comments | 5 tweets | 5 linkedin
Target says 40 million cards may have been compromised in data breach

Target says 40 million cards may have been compromised in data breach

19 December 2013  |  9776 views  |  2 comments | 11 tweets | 12 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.events.sap.comvisit www.finastra.comvisit www.www.fisglobal.com

Top topics

Most viewed Most shared
ECB preps eurozone-wide instant payments serviceECB preps eurozone-wide instant payments s...
9090 views comments | 19 tweets | 37 linkedin
ABN Amro tests wearable tech for contactless paymentsABN Amro tests wearable tech for contactle...
8611 views comments | 9 tweets | 6 linkedin
hands typing furiouslyArtificial Intelligence- Computer to IOT
8440 views 0 | 4 tweets | 2 linkedin
hands typing furiouslyThe EU and blockchain: taking the lead?
7447 views 0 | 8 tweets | 7 linkedin
Asia still top dog for payments innovation but Europe gaining groundAsia still top dog for payments innovation...
7389 views comments | 10 tweets | 9 linkedin

Featured job

Six Figure Base + Commission + Stock Options
London

Find your next job