MasterCard, Target fail to reach settlement on 2013 data breach

(Reuters) — MasterCard Inc., the world's No. 2 debit and credit card company, said it failed to reach a settlement with Target Corp. over claims related to the 2013 data breach at the retailer as a key condition was not met.

Target said in April that it had agreed to reimburse about $19 million to financial institutions that had issued MasterCard-branded cards that were a part of the massive data breach.

"This settlement was conditioned on eligible issuers representing at least 90% of the eligible MasterCard accounts accepting their alternative recovery offers by May 20. As of today, the 90% threshold has not been reached," MasterCard said in an email to Reuters on Friday.

Target spokeswoman Molly Snyder confirmed the development and said the company had "nothing further to share at this time."