Visa has placed the telehealth company Hims and Hers into a monitoring program for merchants with excessive customer disputes after chargebacks in its weight-loss subscription business rose above the network's acceptable threshold in July.
Bloomberg reported the enrollment based on internal documents, and the account was widely picked up. Under the terms described, each dispute now carries an $8 surcharge, resulting in a bill of nearly $75,000 due in September. To exit the program, the company must hold its dispute rate below 1.5 percent of transactions for three consecutive months. Visa notified the company through its payment processor, Stripe.
