Report: MasterCard's biggest card issuers rebuffed Target breach deal
In a new report, The Wall Street Journal has revealed the names of major banks that opted to reject a proposed breach settlement deal between Target and MasterCard.
Last month, news broke that the $19 million breach settlement had been canceled, since conditions of the deal were not met by an important deadline. Under the terms of the deal, card issuers impacted by the 2013 Target breach needed to represent “at least 90 percent of the eligible MasterCard accounts accepting their alternative recovery offers,” MasterCard told the media at the time.
According to sources familiar with the deal, the major issuers that nullified the deal were JPMorgan Chase, Citigroup, and Capital One Financial, who felt it "was too small to cover their losses in the incident,” WSJ reported Tuesday.
As MasterCard's largest U.S. credit-card issuers, the banks “carried more sway than other issuers,” the article explained.