Aug. 22 at 12:04 AM
Hims & Hers Health was placed in Visa’s Visa Acquirer Monitoring Program (VAMP) after exceeding acceptable credit-card dispute levels in July, primarily within its weight-loss subscription business, according to internal documents reviewed by Bloomberg.
Under the program, Hims will pay an
$8 fee per dispute, resulting in an estimated bill of nearly
$75,000 due in September. Visa notified the company through payment processor Stripe earlier this month. To exit VAMP, Hims must lower its credit-card dispute rate below 1.5% of transactions for three consecutive months, which Visa considers an acceptable level.
The development adds pressure to Hims’ rapidly growing weight-loss business, where subscription and medication-related charges have generated increased customer disputes. The company declined to answer specific questions about Visa’s program, but a spokesperson said Hims has recorded a relatively small number of disputed charges and has implemented measures to address the issue.
$HIMS