Heartland settles for $60 Million

Heartland Payment Systems has settled with Visa and will pay upto $60 million. This will cover the losses incurred by issuers of Visa cards due to the breach at Heartland in 2008.

The settlement will go into effect after at least 80% of the eligible card issuers agree to it. The settlement will release Heartland and Visa of any liability arising from this incident. One of the guys who was responsible for the breach, Albert Gonzalez, has pleaded guilty to stealing approximately 130 million credit card numbers. The others involved in perpetrating the breach are still at large.

Earlier, in December, Heartland settled with American Express and agreed to pay $3.6 million as compensation related to the breach. This is an example of the financial consequences of a breach, which can be pretty stiff.