Telehealth provider Hims & Hers Health (NYSE: HIMS) has been placed under Visa’s Acquirer Monitoring Program (VAMP) after its credit card dispute rate exceeded acceptable thresholds in July, the company said through a spokesperson.
Visa notified Hims of its enrollment via payment processor Stripe earlier this month, triggering an $8 surcharge on each disputed transaction. The penalties are expected to total nearly $75,000, with the bill scheduled for delivery in September.
To exit the program, Hims must reduce its dispute rate to below 1.5% of transactions for three consecutive months, a threshold Visa considers acceptable. The company currently serves nearly 3 million customers, with a spokesperson noting the dispute volume represents a relatively small number of charges.
Hims emphasized its commitment to transparency, stating it has implemented a checkout process designed to clearly display membership costs and any prescribed medication fees. The penalties follow a surge in disputes linked to its weight-loss subscription business, a segment that has faced increased regulatory scrutiny in recent years.
