HIMS Stock Plummets 8% Amid Visa Dispute Scrutiny

Hims & Hers Health (HIMS) stock plummeted by 8% on Monday, its worst performance in nearly a month, due to Visa's decision to place the company in its Acquirer Monitoring Program.

The move comes after a surge in credit card disputes related to Hims' weight-loss subscriptions in July. The company must lower its dispute rate below 1.5% and remain under that level for three consecutive months to exit the program.

Hims faces an estimated $75,000 surcharge per month due to each dispute triggering an $8 fee. Weight-loss memberships accounted for 75% of the company's credit card disputes.

The Visa action adds to the scrutiny Hims is already facing from regulators over its subscription and cancellation practices. The Federal Trade Commission, Utah, and Los Angeles County recently sued the company over these issues.