Visa Places Hims & Hers in Monitoring Program Over Disputes

Visa Inc. has placed Hims & Hers Health Inc. in its Acquirer Monitoring Program after a spike in customer credit card disputes during July. The disputes are primarily tied to the telehealth company's weight-loss subscription business. Internal documents show the company faces nearly $75,000 in surcharges for September, with Visa charging $8 per dispute.

To exit the program, Hims & Hers must keep its dispute rate below 1.5% for three consecutive months. The payment network's action follows a notification sent to the company via its payment processor, Stripe, Inc.

This regulatory pressure coincides with a July lawsuit filed by the Federal Trade Commission, Utah, and Los Angeles County. The lawsuit alleges that the company misled consumers regarding subscription terms, obstructed the cancellation process, and mishandled private health information. Hims & Hers has defended its operations, claiming it maintains a transparent checkout process and has experienced only a relatively small number of disputed charges.