MasterCard said to discuss $20M Target breach deal

MasterCard's deal with Target would cover the cost of reissuing bank cards and for any fraud that resulted from the breach. (AP Photo/Mark Lennihan)

(Bloomberg) — MasterCard Inc. and Target Corp. are in talks about a settlement in which the retailer would pay banks about $20 million for costs they incurred in its 2013 data breach, a person familiar with the matter said.

The deal would cover the cost of reissuing bank cards and for any fraud that resulted from the breach, said the person, who asked not to be identified because the talks are private. MasterCard would distribute Target’s funds to the banks that issue the network’s credit cards, and their negotiations are separate from discussions Target is in with Visa Inc.