Heartland Payment Systems in $41.4M settlement with MasterCard issuers over 2008 data breach

Heartland in $41.4M settlement with MasterCard

PRINCETON, N.J. — Heartland Payment Systems Inc., which processes credit card payments, said Wednesday that it will pay MasterCard issuers $41.4 million to settle claims over a 2008 data security breach.

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.

For the settlement to go through, 80 percent of MasterCard issuers who filed claims must accept the deal by June 25, Heartland said.

As a part of the deal, the issuers will have to waive their rights to any future claims related to the incident.

“We feel that this settlement represents an appropriate and fair resolution for our issuing financial institution customers,” Wendy Murdock, chief franchise officer for MasterCard Worldwide, said in a statement.