Heartland Settles With Visa for $60 Million

By: Absolute Team | 1/18/2010

Heartland Payment Systems, which earlier in 2009 had a data breach affecting as many as 100 million people and costing the company millions in legal costs, has settled its suit with Visa. The companies have agreed on up to a $60 million settlement to be used to reimburse Visa's issuing banks for costs associated with the breach.

In a press release earlier this month, Heartland Payment Systems announced that they will fund the settlement program, details of which will be made available to eligible Visa-card issuers in the coming days.

Bob Carr, Heartland’s chairman and chief executive officer, stated, "We are pleased to have reached a fair settlement agreement that helps issuers obtain a recovery with respect to losses they may have incurred from the intrusion. At Heartland, we are also committed to helping issuers — as well as all stakeholders in the payment ecosystem — mitigate future risk. We have assumed a leadership position in the development of enhanced data security and fostering the sharing of information."

I think Heartland has, indeed, learned their lesson the hard way. As a result, they are coming out of this data breach incident with a stronger sense of accountability and of the needs for strong security measures. Last year, for example, they shared advice with the public about data breaches.

Via SC Magazine

Financial Services