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

The deal would cover the cost of reissuing bank cards and forany fraud that resulted from the breach, said the person, who askednot to be identified because the talks are private. MasterCardwould distribute Target's funds to the banks that issue thenetwork's credit cards, and their negotiations are separate fromdiscussions Target is in with Visa Inc.

Jim Issokson, a spokesman for Purchase, New York-basedMasterCard, and Evan Lapiska, a spokesman for Target, declined tocomment. The Wall Street Journal reported the possibledeal earlier Tuesday.

Target has estimated that hackers stole credit- and debit-carddata, as well as personal information, for as many as 110 millioncustomers during the 2013 holiday shopping season. TheMinneapolis-based retailer last month agreed to pay $10 million toat least 70 million customers whose personal information may havebeen taken.

Target rose 0.9% to $83.81 at 10:01 a.m. in New York. The sharesgained 9.4% this year through yesterday.

–With assistance from Duane D. Stanford in Atlanta.

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