Visa Sets Deadline for Issuers in Target Settlement
In the latest development in litigation surrounding the 2013 Target data breach, Visa set a deadline for its debit card issuers to request extra payment on top of the monies the issuers will receive in accordance with an earlier settlement reached with Target. As part of this earlier settlement, Target agreed to pay as much as $67 million to Visa’s debit and credit card issuers, but the issuers can request additional funds for losses they experienced from fraud stemming from the data breach.
Visa set a deadline of Sept. 4 for the issuers to request the extra compensation. To receive the extra payment, however, the issuers were required to agree not to sue Target. The issue of compensation due to issuers for the data breach has been a touchy one, as many issuers have argued that reimbursement alone is not sufficient to compensate them for losses they suffered. While only a handful of companies have chosen to pursue Target individually, it is unclear how many issuers took Visa’s offer to request extra compensation in exchange for an agreement not to pursue other action against Target.
