TJX agrees to pay US$40.9M to Visa card issuers in breach case

But banks have to decide by December 19 whether to accept the US$40.9M deal

In a move that could save it tens off millions of dollars in lawsuit damages, TJX Companies Friday announced that it will pay up to US$40.9 million to Visa card issuers who may have been affected by a massive data breach disclosed by the retailer in January.

Under an agreement reached with Visa USA, TJX said it will compensate banks that issued Visa payment cards potentially affected by the computer breach if they, in turn, agree not to sue the retailer over the breach.

Affected banks have until December 19 to accept the offer. Those who do so will be compensated by month's end, the company said in a statement Friday.

The proposed settlement comes even as the US District Court in Boston this week overturned an effort by a group of bankers associations to gain class action certification for their efforts against TJX.

Carol Meyrowitz, president and CEO of TJX, said the proposed settlement provides a "fair resolution" to banks that were affected by the breach and she expressed her hope that it would be broadly accepted. Meyrowitz added that the costs of the proposed deal with card issuers is already reflected in a charge TJX took in its fiscal 2008 second quarter.

In its own statement, Visa's head of global risk management, Ellen Richey, said that those who accept the deal would "benefit greatly" because it offers immediate recovery of their data breach claims.

"This agreement demonstrates the importance of retailers and the payment card industry working together to protect cardholder data," she said in the statement.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection
Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Jaikumar Vijayan

Show Comments


James Cook University - Master of Data Science Online Course

Learn more >


Sansai 6-Outlet Power Board + 4-Port USB Charging Station

Learn more >

Victorinox Werks Professional Executive 17 Laptop Case

Learn more >



Back To Business Guide

Click for more ›

Brand Post

Most Popular Reviews

Latest Articles


PCW Evaluation Team

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Walid Mikhael

Brother QL-820NWB Professional Label Printer

It’s easy to set up, it’s compact and quiet when printing and to top if off, the print quality is excellent. This is hands down the best printer I’ve used for printing labels.

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?