Visa's issuing banks covered the cost of issuing replacement cards and negating fraudulent charges on compromised credit card accounts. The $60 million settlement fund will help banks recover those costs, instead of passing them along to consumers in the form of higher finance charges and service fees.
Participating Visa issuers must still ratify the settlement, but officials from both Visa and Heartland expressed confidence that the settlement would be accepted. "Helping financial institutions mitigate costs after a data security breach has been a long-standing component of Visa's security strategy," said Visa spokesperson Ellen Richey.
About the Author
Joe Taylor Jr. is an internal business consultant for a Fortune 500 company, who writes about finance, culture, and design. He holds a Bachelor of Science in Communications from Ithaca College.