NCCapital

Visa has reportedly placed telehealth company Hims & Hers Health into its Acquirer Monitoring Program following an increase in customer charge disputes during July. According to WebNovare, which cited internal documents, the move could create additional financial and operational pressure for the company as it works to bring its dispute rate below Visa's required threshold.

Under the program, Hims will reportedly face an $8 surcharge for each disputed transaction covered by the monitoring process. Based on the volume of challenges identified in the documents, the company could face a total bill of nearly $75,000.

Visa's monitoring programs are designed to identify merchants with elevated levels of customer disputes or other transaction-related concerns. Companies that exceed established thresholds can face additional fees and requirements intended to encourage improvements in billing practices and dispute management.

To be removed from the program, Hims & Hers will reportedly need to reduce its dispute rate to less than 1.5% of total transactions for three consecutive months. Meeting that target could require the company to improve how it handles customer billing, cancellations, refunds, and other issues that may lead consumers to challenge charges.

The development comes at a particularly sensitive time for Hims & Hers. The company is also facing legal scrutiny from the Federal Trade Commission over allegations involving deceptive billing practices and violations related to customer privacy.

The FTC lawsuit adds another layer of pressure to the telehealth company's rapidly growing business. Hims & Hers has expanded significantly in recent years by offering online access to treatments and prescriptions across categories including sexual health, dermatology, mental health, weight management, and other services.

The rise in customer disputes could attract additional attention because recurring subscriptions and online healthcare services can sometimes create confusion around billing terms, automatic renewals, and cancellation procedures. Companies operating in the subscription economy increasingly face scrutiny over whether customers clearly understand when and how they will be charged.

For Hims & Hers, reducing its dispute rate will likely become an important short-term priority. Remaining above Visa's threshold for an extended period could result in continued monitoring, additional costs, and potentially greater pressure from payment partners.

The nearly $75,000 in reported fees may be relatively small compared with the company's overall revenue, but the broader implications could be more significant. Payment-processing concerns can affect a company's relationships with banks, card networks, and other financial partners that play a critical role in processing customer transactions.

The situation illustrates how regulatory scrutiny and payment-network oversight can create overlapping challenges for fast-growing digital health companies. As Hims & Hers works to address the reported dispute rate and defend itself against the FTC's allegations, investors and customers will be watching closely to see whether the company makes changes to its billing practices, customer protections, and privacy policies.