Temu is a rapidly growing e-commerce platform launched by PPD Holdings in 2022. Similarly to Amazon, it operates through a website and app where individual vendors list their products and handle orders. However, most of the products on Temu are listed at surprisingly low prices. Although this attracts many customers, it also raises the question of the company’s legitimacy and safety.
Apprehensions increase even more when it comes to using credit cards on this controversial platform. Is it safe to use your credit card on Temu? In this article, we’ll explore the facts, explain the risks of using your card on this popular online marketplace, and offer tips to ensure safe online shopping.
Is It Safe To Use a Credit Card on Temu?
Using a credit card on Temu is safe, given their data security measures. However, if you make a purchase on Temu with your credit card and the order doesn’t arrive, you will depend solely on Temu’s refund and return policy.
Here are three Temu features that make it safe for credit card use:
- 3D Secure for credit card transactions
- PCI compliance
- SSL encryption for personal and payment information
3D Secure for Credit Card Transactions
3D Secure (3DS) is a safety measure that adds an extra step to credit card payments. Major credit card providers like Visa, Mastercard, and American Express offer their own versions of 3DS—Visa offers “Verified by Visa,” Mastercard has “SecureCode,” and American Express provides “SafeKey.”
If you have 3DS turned on and you make a payment on Temu, your card issuer will ask you to verify your identity. You will be prompted to enter a one-time password (OTP) or complete the verification in your banking app. Your credit card payment will be processed only after successful verification.
This feature helps prevent unauthorized transactions and limits the chances of someone else using your card.
PCI Compliance
The Payment Card Industry Data Security Standard (PCI DSS) ensures that businesses handle credit card information securely. Compliance with PCI DSS is required for businesses that process and transmit customers’ credit card information.
Temu claims to follow these standards to protect your card details, being that:
- Card details are encrypted to prevent unauthorized access
- Only authorized personnel can access sensitive card information
- Secure systems and protocols are in place to protect the network
- Ongoing checks are conducted to identify and fix vulnerabilities
SSL Encryption for Personal and Payment Information
Temu also claims to use Secure Socket Layer (SSL) encryption to protect your personal and payment information during transactions.
SSL is a widely used security technology that ensures data is encrypted when it’s sent between your browser and Temu’s servers. This means your sensitive details, such as credit card information, are protected from prying eyes.
The Risks of Using a Credit Card on Temu
Despite safety measures in place, some reports about Temu have raised security concerns.
Three reasons why it may not be safe to use a credit card on Temu include:
- Data shared with third parties
- Temu’s sister app controversy
- Data breach allegations
Data Shared With Third Parties
According to Temu’s privacy policy, your personal information may be shared with third parties when you shop on the platform.
The apparent goal is to improve services, fulfill orders, handle payments, deliver personalized ads, and comply with legal requirements. However, this approach also introduces risks, especially regarding payment information.
Here’s what Temu shares with their partners:
| Partner Type | Data Shared |
| Affiliates | Shipping address, contact information |
| Service providers | Personal information necessary for services (e.g., customer support, order fulfillment) |
| Payment processors | Payment information, credit card details |
| Advertising and analytics partners | Browsing behavior, purchase preferences |
| Business ad marketing partners | Information about promotions or products of interest |
| Professional advisors, authorities, and regulators | Relevant personal information needed for transaction completion |
While Temu claims to prioritize your privacy, sharing data with multiple third parties increases the risk of a breach. If a third-party company’s security is compromised, your sensitive information, including your credit card details, could fall into the wrong hands.
Additionally, sharing information with advertising and analytics partners puts you at the risk of targeted phishing attempts. Fraudsters may use your data to create convincing scams that trick you into giving away sensitive information.
Temu’s Sister App Controversy
The U.S. government has raised concerns about potential data risks associated with Temu, particularly following the removal of its sister app, Pinduoduo. Temu is owned by PPD Holdings, the parent company that also operates Pinduoduo, another e-commerce platform.
In March 2023, Google suspended Pinduoduo after discovering that certain versions of the app, particularly those outside the official Play Store, contained malware.
The malware exploited specific vulnerabilities in Android phones, allowing it to:
- Bypass user security permissions
- Access private messages
- Modify device settings
- View data from other apps
- Prevent the app from being uninstalled
Google labeled Pinduoduo as an “identified malicious app” and recommended that users uninstall it.
Data Breach Allegations
Recently, a hacker claimed to have breached 87 million lines of Temu’s database. The announcement was made on BreachForums, a dark web marketplace for stolen data.
The hacker provided evidence by sharing an image revealing some Temu users’ IDs, usernames, birth dates, IP addresses, and other sensitive details.
In response, Temu denied the breach claims and asserted that all customer data remains secure. The company stated that no data from their systems matches the leaked information. Temu also indicated their readiness to pursue legal action against those spreading false information.
Best Practices To Ensure Temu Is Safe for Your Credit Card
Temu is a relatively new platform and they have implemented various measures to protect sensitive information. Despite these efforts, using a credit card for online transactions always carries some risk. To ensure your credit card remains safe on Temu, take the following steps:
- Use a virtual credit card
- Familiarize yourself with Temu’s privacy policy
- Report suspicious activity to Temu’s customer support
- Move most of your money to a secure online savings account
Use a Virtual Credit Card
A virtual credit card is a digital equivalent of a credit card that generates a temporary number distinct from your physical card’s number. You can easily get a virtual credit card through providers like:
When you use a virtual credit card on Temu, your physical credit card number remains hidden and protected from data breaches. You can set up a virtual credit card for a specific amount or a single transaction. In case it gets compromised, the scammer can only use it up to the set amount.
You can also easily disable or delete the virtual card number without affecting your physical credit card.
Familiarize Yourself With Temu’s Privacy Policy
Before you start shopping on Temu, take a moment to read the privacy policy, which outlines how they collect, use, and protect your personal information, including credit card details.
When you know how your data is collected, you can actively manage your settings to limit sharing it. For example, the policy clearly states that users connecting to Temu via social media or other third-party platforms can adjust their account settings to limit shared information.
Temu’s privacy policy also outlines your rights as a user, including the right to access your personal information, correct inaccuracies, and request deletion to prevent fraud in case of a breach.
Report Suspicious Activity to Temu’s Customer Support
While you can’t do much about Temu’s internal data collection and security practices, you can report bad actors that commonly target unsuspecting users on the platform.
Look out for the following fraud indicators on Temu:
| Indicator | Example |
| Unsolicited requests for credit card information | You receive an email/message from someone claiming to be Temu support asking for your card details |
| Too-good-to-be-true offers | You come across exclusive discounts and offers that are too good to be true |
| Pressure to act quickly | A message appears while you’re shopping on Temu claiming that you only have a few minutes to complete a purchase without time to verify the legitimacy of the offer |
If you suspect fraud or encounter a scam, report it to Temu’s customer support immediately. Temu officials claim they work closely with legal and financial experts to investigate fraud cases.
Move Most of Your Money to a Secure Online Banking Platform
This tip doesn’t apply only to Temu users but also to consumers who shop or make financial transactions online, no matter the platform.
When scammers steal your credit card information, they may also access other personal information. These sensitive details can help them break into your checking or savings accounts and drain your life savings. This is why it’s important to move most of your life savings to a highly secure banking platform like FortKnox by Austin Capital Bank.
