Target Corporation has announced that it will pay $19 million to issuing banks of MasterCard brand cards which were part of the big data breach that happened at the retail giant in 2013.
The amount being paid by Target Corp also cover the costs that the banks had to pay for re-issuance of new credit cards and debit cards which became mandatory due to the breach.
During the holiday shopping season of 2013, the data of more than 40 million credit cards was breached at Target. This breach might have resulted in the undesired disclosure of personal data like email address, social security numbers, telephone numbers of as many as 110 million target customers.
These agreed payments will be released by the end of the second quarter and depends on at least 90 percent of the eligible card holders accepting the offer by 20th May.
Target Corp further said that the expenditure being incurred on this liability was already reflected in its books for the year 2013 and 2014.
This settlement does not include credit card holders of Visa brand. A spokesman from Target said that it is negotiating a separate settlement with Visa Inc.
The share price of Target was trading at one percent high at $82.71.