MasterCard: Most banks agree to breach settlement

PURCHASE, N.Y.

MasterCard Inc. said Thursday nearly all of the banks with claims related to a 2008 data security breach have agreed to accept a settlement.

The settlement, agreed to by MasterCard and credit card payment processor Heartland Payment Systems Inc., required at least 80 percent acceptance by MasterCard issuing banks. MasterCard said more than 99 percent agreed.

"This is an important outcome for our partnering financial institutions and we are very pleased to announce that there has been overwhelming acceptance of the alternative recovery offers by our eligible issuing customers," said Wendy Murdock, chief franchise officer for MasterCard Worldwide.

As part of the settlement, Heartland Payment Systems will pay MasterCard issuers $41.4 million to settle claims over the breach.

The card-issuing banks could receive payments as early as September.

Hackers installed spying software on Heartland's computer network in 2008, giving them access to data on the systems that process Visa, MasterCard, American Express and Discover Card transactions. The settlement will cover alleged losses MasterCard issuers took as a result.

Under the deal, the issuers must waive their rights to any future claims related to the incident.

MasterCard shares fell $3.03 to $210.14 in midday trading.