Visa Cracks Down on Hims Disputes Amid Weight-Loss Subscription Surge

Visa has taken action against telehealth firm Hims & Hers Health due to an increase in credit card disputes tied to its weight-loss subscriptions. The payment giant placed Hims into its Acquirer Monitoring Program, which will cost the company about $75,000 in September and requires three straight months below a 1.5% dispute rate to exit the program.

The move is part of Visa's role as a risk gatekeeper for subscription-heavy merchants. This comes at a time when regulators are scrutinizing Hims' billing practices, including an FTC lawsuit alleging deceptive charges and hard-to-cancel memberships.

Despite this tougher stance toward merchant behavior, Wall Street remains bullish on Visa itself. Analysts at DBS and Barclays reiterate Buy ratings and a consensus price target around $422, implying mid-teens upside from current levels for the stock.