TJX reaches settlement deal with MasterCard

FRAMINGHAM, Mass. The TJX Companies announced on April 2 that it has entered into a settlement agreement with MasterCard International. Under the agreement, alternative recovery offers will be made by MasterCard to eligible MasterCard issuers worldwide that issued payment cards claimed by them to have been affected by TJX’s previously announced unauthorized computer intrusion(s), and MasterCard will recommend that eligible MasterCard issuers accept such offers.

TJX has agreed to fund up to a maximum of $24 million pre-tax in alternative recovery payments depending on the extent of acceptance. The settlement is conditioned on issuers of at least 90% of the claimed-on MasterCard accounts accepting their alternative recovery offers by May 2.

Carol Meyrowitz, president and ceo of The TJX companies, stated, “We believe this Settlement Agreement provides a fair resolution for MasterCard and its issuing banks and look forward to a high level of issuer acceptance. Providing a secure shopping environment for our customers remains a priority for TJX. Beyond the many millions of dollars we have spent to add significant security to our computer system, we are installing security measures which exceed those of many other retailers and current industry requirements.”