Target and MasterCard are close to reaching a settlement of the claims of MasterCard-issuing institutions in connection with Target’s 2013 data breach, according to a report published today in The Wall Street Journal.  The settlement would reimburse the cost of reissuing debit and credit cards compromised by the breach, as well as a portion of the resulting fraudulent charges made using stolen payment card numbers. 

A $20 million settlement would be comparable to the amount paid by TJX Cos. to MasterCard in connection with the 2008 TJX data breach.  News of a potential card issuer settlement comes less than one month after Target and class counsel filed papers seeking court approval of a proposed class settlement of consumer claims arising from that same data breach.  Sources informed the Wall Street Journal that a definitive MasterCard settlement could be announced as soon as this week.