Visa Crackdown Hits Hims & Hers Health Shares Over Dispute Rate

Hims & Hers Health's stock price took a hit on Monday after reports emerged that Visa had placed the telehealth company under a monitoring program due to high customer payment disputes.

The move was reportedly triggered by an increase in card chargebacks linked to Hims' weight-loss subscription business in July, with the company facing potential fees of nearly $75,000 in September based on an $8 charge for each dispute.

To leave the program, Hims would need to keep its dispute rate below 1.5% of transactions for three consecutive months, adding another challenge to the company as it faces regulatory scrutiny over its subscription practices.