Hims & Hers Health, Inc. has been enrolled in Visa Inc.'s Acquirer Monitoring Program after customer credit card disputes in its weight-loss subscription business exceeded acceptable levels in July, according to a Bloomberg report. Each dispute carries an $8 surcharge, resulting in a bill of nearly $75,000 due in September, and Hims must keep its dispute rate below Visa's 1.5% threshold for three consecutive months to exit the program. A Hims spokesperson said the company has seen "a relatively small number of disputed charges" and has taken steps to address the issue. The news follows an FTC action from late July alleging deceptive billing and cancellation practices, which Hims has said it will "vigorously defend" against. Shares fell as much as 9.5% on the news.
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Hims Hers Health IncVisa penalties and FTC action over billing disputes
Visa Inc. Class AVisa's program penalizes Hims, but Visa itself is not directly impacted
