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Security

Target settles with MasterCard for $19M over data breach

The money will compensate financial institutions that had to cancel credit-card accounts and issue replacement cards with new account numbers following the 2013 data breach at the retail giant.

Target has ended a dispute with MasterCard over the 2013 data breach at the retail giant's stores by agreeing to pay up to $19 million to credit-card issuers worldwide.

The money will compensate them for the costs of canceling accounts, creating new accounts and sending out new cards, the companies announced Wednesday. MasterCard is urging cards issuers to accept the deal, and Target has agreed to pay the card issuers by the end of the second quarter.

Target suffered a massive data breach in late 2013 in which 110 million customer records, including 40 million credit-card numbers, were stolen. So far, no one has been charged.

After the breach was discovered, Target informed financial institutions about cards that may have been compromised. Issuers, which include banks, credit-card companies and other financial firms, canceled accounts and issued replacement cards with new account numbers.

This deal is only with MasterCard. According to reports, Target is negotiating a similar agreement with Visa.

Target did not immediately respond to a request for comment.