Hims & Hers Faces Penalties from Visa Over Credit Card Disputes
On August 21, 2026, Bloomberg reported that Hims & Hers Health Inc. (NYSE:HIMS) was placed in Visa Inc.'s Acquirer Monitoring Program due to excessive customer credit card disputes related to its weight-loss subscription service. The company faces a $75,000 surcharge bill and must reduce dispute rates below 1.5% for three consecutive months to exit the program. This development follows an FTC lawsuit from late July alleging deceptive billing practices by Hims & Hers, which the company denies but plans to defend vigorously. Despite these challenges, Hims reported strong second-quarter growth with a 38% revenue increase and rising subscriber numbers, indicating that customer demand remains robust despite regulatory scrutiny. However, recent financial results show significant losses due to increased operating expenses and declining gross profit margins as the firm invests in branded GLP-1 drugs and international expansion. The company is also dealing with multiple legal issues involving billing practices and privacy concerns.
Tickers: $HIMS
Topics: credit card disputes FTC action stock price reaction Visa monitoring program