Heartland Payment Systems (NYSE: HPY) reported Friday it will pay up to $60 million to Visa (NYSE: V) credit and debit card issuers in a settlement, according to Associated Press.
The money will help cover losses the Visa issuers suffered when Heartland's computer network was hacked by spyware in late 2008. The hacking affected the system used to process Visa, MasterCard, American Express and Discover Card transactions.
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At least 80 percent of the eligible card issuers must approve the payment and sign a release of liability. Visa will notify eligible issuers soon about the program and how to participate. It will send formal offers Jan. 14. Eligible issuers will have until Jan. 29 to opt in.
Heartland Payment said it lost more in the third quarter than it expected because of the settlements. The net loss of $37.1 million amounted to 99 cents per share.
On Nov. 3, before some settlement offers were made, Heartland reported a net loss of $13.6 million, or 36 cents per share. In December, Heartland announced it would pay American Express Co. (NYSE: AXP) $3.6 million.
A year earlier, the company earned $13.4 million, or 35 cents per share.
Heartland shares rose $1.64, or 12.4 percent, to $14.86 in afternoon trading.
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