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Heartland Payment Systems, MasterCard sign USD 41.4 million settlement agreement

Thursday 20 May 2010 11:42 CET | News

US-based payment processor Heartland Payment Systems has signed a settlement agreement with MasterCard Worldwide to solve claims from MasterCard and its issuers related to the 2008 criminal intrusion into Heartlands payment system environment.

Under the terms of the agreement, Heartland is set to compensate for the losses caused as a result of the criminal intrusion by making alternative recovery offers of USD 41.4 million to eligible MasterCard issuers. In turn, MasterCard will assume the role of recommending eligible MasterCard issuers to accept such offers.

The settlement created under the partnership includes mutual releases between Heartland and its sponsoring bank acquirers on one side and MasterCard and the accepting issuers on the other. Nevertheless, the settlement is dependent on the financial institutions willingness to accept their alternative recovery offers by June 25, 2010. The latter represent 80 percent of the claimed-on MasterCard accounts.

Heartland Payment Systems offers card processing, gift marketing, payroll as well as check management services across the United States.
 


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Keywords: Heartland Payment Systems, MasterCard Worldwide, criminal intrusion settlement
Categories: Payments & Commerce
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Countries: World
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Payments & Commerce