Visa Flags Hims & Hers Subscription Disputes, Stock Plummets

Hims & Hers (HIMS) stock plummeted 8% on Monday, breaking a three-session winning streak. The decline followed reports that Visa had flagged a significant increase in credit card disputes tied to Hims' weight-loss subscriptions.

According to internal documents cited by Bloomberg, Visa placed Hims in its Acquirer Monitoring Program due to the surge in disputes in July. To exit the program, Hims must reduce its dispute rate below 1.5% of transactions and maintain it for three consecutive months.

The weight-loss segment accounted for 75% of all credit card disputes at Hims. Membership starts at $39 for the first month, then jumps to $149 with automatic renewals. Prescription drugs are billed on top of that, with prices varying based on medication and dosage.