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Visa places Hims & Hers in acquirer monitoring over billing disputes

Visa said it is charging an $8 penalty for each contested transaction, with the aggregate penalty approaching about $75,000 for a recent month.

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Visa has placed Hims & Hers Health into its Acquirer Monitoring Program after a spike in billing disputes, a move that introduces per-transaction penalties tied to contested charges.

The telehealth provider’s subscription model has come under scrutiny as consumers report difficulty cancelling, which can lead to chargebacks through their credit card providers rather than resolving issues through customer service.

According to the complaint filed in late July, the Federal Trade Commission, along with the attorneys general of California and Utah, alleges Hims & Hers engaged in deceptive billing practices by obscuring the cancellation process behind confusing interfaces.

In response to the dispute volume, Visa levied an $8 penalty each time a patient disputes a charge, with the article estimating aggregate penalties approaching about $75,000 for a single recent month.

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