--- description: Citigroup, Capital One Financial, and JPMorgan Chase have banded together to squash a MasterCard-backed settlement over Target's data breach title: These 3 Banks Rejected Mastercard's Target Hack Settlement image: https://static.time.com/v3/assets/bltea6093859af6183b/bltfd1bc380e2b0f645/698852a655a8594f6ea8c502/462471466.jpg?branch=production&width=3840&quality=75&auto=webp&crop=16:9 ---  * [Business](/section/business/) ## Business Update your preferences in [Account Settings](/account/preferences/) Close * [Tech](/tag/time-section-tech/) ## Tech Update your preferences in [Account Settings](/account/preferences/) Close # These 3 Banks Rejected Mastercard's Target Hack Settlement by [Robert Hackett / Fortune](/author/fortune/) ## Robert Hackett / Fortune Update your preferences in [Account Settings](/account/preferences/) Close Jun 2, 2015 8:16 PM CUT  by [Robert Hackett / Fortune](/author/fortune/) ## Robert Hackett / Fortune Update your preferences in [Account Settings](/account/preferences/) Close Jun 2, 2015 8:16 PM CUT Try again, MasterCard. The largest card-issuing banks for MasterCard were not happy with the recent $19 million deal the company struck with Target to settle claims over the retailer’s massive data breach in late 2013, [the _Wall Street Journal_](http://www.wsj.com/articles/biggest-mastercard-issuers-scuttled-deal-on-target-data-breach-1433253072 "undefined") reports, citing unnamed sources. And their objections have caused the plan to be scrapped. The three banks that rejected [the proposal](http://fortune.com/2015/04/14/target-nears-20-million-mastercard-data-breach-settlement/ "undefined")—Citigroup , Capital One Financial, and JPMorgan Chase —wielded substantial veto power: Data from the industry newsletter [Nilson Report](http://www.nilsonreport.com/index.php "undefined") reveals that they represent about 40% of all purchases made on MasterCard’s credit cards, according to _WSJ_. Normally, companies like MasterCard and Visa negotiate such settlement deals on banks’ and credit unions’ behalf. In this case, the banks banded together to slam the breaks on the proposed pact. The banking trio apparently did not feel that $19 million would adequately compensate them for their losses from the Target hack, which led to the compromise of 40 million credit cards. In addition, the companies wanted to “send a message,” _WSJ_ reports, that they are displeased with the security practices of merchants. In order for the pact to pass, it would have needed [90% buy-in](http://www.wsj.com/articles/target-reaches-19-million-settlement-with-mastercard-over-data-breach-1429136237 "undefined") from the banks affected by the breach. Just how many votes in favor or against the proposed settlement received remains unclear. Now MasterCard and Target must reenter talks, aiming to appease the set of card issuers. In March, the retailer settled a class-action lawsuit instigated by victims of the data breach by [agreeing to pay out $10 million](http://fortune.com/2015/03/19/target-10-million-settle-data-breach/ "undefined"). For a more in-depth take on the challenges Target and its new CEO now face, read [this cover story](http://fortune.com/target-new-ceo/ "undefined") from the March 1, 2015 issue of _Fortune_ magazine. [_This article originally appeared on Fortune.com_](http://fortune.com/2015/06/02/target-hack-mastercard-settlement/ "undefined") ```json [{"@context":"https://schema.org","@type":"NewsArticle","@id":"https://time.com/3906140/target-hack-mastercard-settlement/","mainEntityOfPage":{"@type":"WebPage","@id":"https://time.com/3906140/target-hack-mastercard-settlement/"},"headline":"These 3 Banks Rejected Mastercard's Target Hack Settlement","datePublished":"2015-06-02T20:16:51.000Z","dateModified":"2026-04-13T08:05:35.908Z","description":"Banks band together to squash a settlement over Target's data breach","url":"https://time.com/3906140/target-hack-mastercard-settlement/","keywords":["Tech","Security","pubdesk"],"thumbnailUrl":"https://static.time.com/v3/assets/bltea6093859af6183b/bltfd1bc380e2b0f645/698852a655a8594f6ea8c502/462471466.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","author":[{"@type":"Person","name":"Robert Hackett / Fortune"}],"articleSection":"Business","image":[{"@type":"ImageObject","url":"https://static.time.com/v3/assets/bltea6093859af6183b/bltfd1bc380e2b0f645/698852a655a8594f6ea8c502/462471466.jpg?branch=production&width=1200&quality=75&auto=webp&crop=1200:675&height=675","width":1200,"height":675,"headline":"462471466","caption":"","creditText":"","representativeOfPage":true}],"publisher":{"@type":"Organization","name":"Time","url":"https://time.com/","logo":{"@type":"ImageObject","url":"https://time.com/images/logo.png","width":528,"height":156},"foundingDate":"March 3, 1923","sameAs":["https://www.facebook.com/time","https://www.instagram.com/time/?hl=en","https://twitter.com/time","https://www.pinterest.com/timemagazine"]}},{"@context":"https://schema.org","@type":"BreadcrumbList","itemListElement":[{"@type":"ListItem","position":1,"item":{"@id":"/section/business/","name":"Business"}},{"@type":"ListItem","position":2,"item":{"@id":"/tag/time-section-tech/","name":"Tech"}},{"@type":"ListItem","position":3,"item":{"@id":"https://time.com/3906140/target-hack-mastercard-settlement/","name":"These 3 Banks Rejected Mastercard's Target Hack Settlement"}}]},{"@context":"https://schema.org","@type":"VideoObject","name":"How To Protect Your Selfies from Hackers","description":"A little safety can help save your skin from ending up on 4 Chan.","thumbnailUrl":"https://cdn.jwplayer.com/v2/media/VbTXeRNE/poster.jpg?width=720","uploadDate":"2014-09-03T20:19:14.000Z","contentUrl":"https://cdn.jwplayer.com/manifests/VbTXeRNE.m3u8","embedUrl":"https://time.com/3906140/target-hack-mastercard-settlement/","duration":"PT1M16S","potentialAction":{"@type":"SeekToAction","target":"https://time.com/3906140/target-hack-mastercard-settlement/?jw_start={seek_to_second_number}","startOffset-input":"required name=seek_to_second_number"}}] ```