Target Corp. has struck an agreement with Visa, Inc. to pay its card issuers about $67 million in costs incurred from a data breach scandal in 2013, according to a report from The Wall Street Journal.
The breach damaged the reputation of retailers with shoppers and affected its sales.
Arkansas Online added that Target and Visa have confirmed the agreement and, although no amount was mentioned, a person familiar with the matter said the settlement was about $67 million in pre-tax payments.
The payment will be to Visa and financial institutions, which were affected by the data breach.
Arkansas Online added that Target said they are pleased to reach an agreement.
"Target is pleased that we have reached a settlement agreement with Visa related to the data breach," the company said.
The Wall Street Journal added that Target's agreement with Visa comes as the card industry and merchants are looking for a more secure card.
They want a card that can stop data breaches similar to this one.
Arkansas Online added that Target disclosed the breach of its computer system in 2013, during the peak of the Christmas shopping season.
Shoppers avoided Target out of fear and it affected sales negatively for months.
Arkansas Online added that the Target's computer systems comprised of 40 million credit and debit card accounts, which hackers stole.
Personal information, like names and addresses, were also stolen, putting those affected at risk of identity theft.
The Wall Street Journal added that Visa said the "agreement attempts to put everything behind" everyone involved as they concentrate on more secure payments.
Visa notified its smaller card issuers about the agreement and advised them on how much they would be reimbursed.
The Wall Street Journal added that Visa represented banks and other firms that issue credit and debit cards to make the agreement with Target on their behalf.
Carrie Hunt, general counsel of the National Association of Federal Credit Union, told The Wall Street Journal that the settlement puts them in the right direction.
"This settlement is a step in the right direction, but it still may not make credit unions whole," she said.
