The telehealth sector relies heavily on frictionless subscription models to sustain top-line growth. When consumers find those subscriptions difficult to cancel, they bypass customer service and call their credit card providers. A recent surge in these chargebacks has forced a major global payment network to intervene in the operations of a leading virtual care provider.
Visa Inc. (NYSE: V) recently placed Hims & Hers Health (NYSE: HIMS) into its Acquirer Monitoring Program following a spike in billing disputes. This action introduces an immediate financial penalty for every contested transaction, directly targeting the unit economics of the telehealth platform.
