VISA, TJX Agree To Settlement Option
SAN FRANCISCO -- TJX Companies Inc., the large retail corporation which experienced the biggest retail card security breach to date, and VISA USA have agreed to a reslution that could get compensation to card issuers who suffered losses more quickly.
Under the terms of the deal the retailer, which is the parent corporation for TJ Maxx, Marshalls and other retail chains in the U.S., Canada and the United Kingdom, along with its acquiring bank, will put up to $40.9 million to fund the payments.
The agreement will also require that more than 80% of card issuers who suffered damage in the breach to agree to accept the payment. Receiving payment will mean releasing TJX and its acquiring bank from liability and future claims. The agreement's upside for impacted credit unions is that they will be able to receive at least partial compensation for their losses without long legal fights.
"We believe issuers will benefit greatly by participating in this program because it offers immediate recovery on their data breach claims," said Ellen Richey, head of global risk management for Visa Inc. "This agreement demonstrates the importance of retailers and the payment card industry working together to protect cardholder data. Additionally, it's clear the impact of a data compromise harms all payment system stakeholders -- merchants, banks and consumers alike. We hope one outcome of this resolution is recognition that a greater investment in security is good business."