Is Cheddar Safe to Use in the UK? Full Review (2026)

Cheddar promises instant cashback on supermarkets, coffee chains and high street shops, which sounds almost too good to be true. So is Cheddar safe to use in the UK, and what is the catch? This review uses Cheddar’s own terms and conditions (revision 1.5, last updated 10 June 2025), its public regulatory details and the gift card rates shown in the app on 11 October 2026. Terms and rates can change, so check the app before you sign up.

What is Cheddar and how does it work?

Cheddar is a UK cashback and payments app run by Cheddar Payments Limited. Today its main feature is gift card cashback: you buy a digital gift card for a retailer inside the app, your cashback appears in your Cheddar balance straight away, and you use the gift card in store or online. Cheddar says digital gift cards usually appear in the app within 1 to 5 minutes of payment, though payments can occasionally take up to 2 hours.

The terms say Cheddar resells gift cards from other providers and is not the original issuer, so extra terms from the card provider may apply. The old automatic cashback, which tracked card spending through Open Banking, is closed. Under the current terms, purchases made after 26 January 2025 no longer earn automatic cashback.

Is Cheddar safe? What we found

• Regulation. Cheddar Payments Limited says on its website that it is authorised and regulated by the Financial Conduct Authority, and it appears in Open Banking’s directory of regulated providers. The firm reference number given on its site is 940075. You can confirm this yourself by searching the FCA’s Financial Services Register. Cheddar’s Google Play listing names a sister company, Cheddar Payments B.V. in the Netherlands, as the developer, and its privacy policy says the group includes both companies.
• Who you sign up with. To create a profile you need a UK personal current account, a UK mobile number and to be 16 or over. You link your bank through Open Banking, and you can withdraw that permission at any time.
• Your cashback balance is not a bank deposit. The terms state that Cheddar does not hold money in your profile like a bank account. Legal ownership of your cashback only passes to you once you have successfully withdrawn it, so do not leave large balances sitting in the app.
• Complaints. You can complain to complaints@cheddar.me, and if you are unhappy with the response you may be able to go to the Financial Ombudsman Service.

FCA authorisation relates to Cheddar’s payment services. It does not mean every gift card or the value of your cashback balance is protected like money in a bank, so treat the app accordingly.

The rules that catch people out

These come straight from Cheddar’s terms and are the real catches:

• Use it or risk losing it. To keep your cashback valid you need to transact at least once every six months. That can mean buying a gift card that earns cashback, withdrawing cashback, or referring someone who triggers a reward. You should also log in at least once every six months or your profile could be disabled, and cashback on a disabled profile is treated as forfeited.
• Gift card purchases are final. You give up the usual cancellation window. If you want a refund, Cheddar will try to negotiate one with the card issuer if the card is unused, and asks for 10 business days. If the issuer says no, you cannot return it. If a card is defective, you are entitled to a refund or replacement.
• Check the retailer’s gift card rules first. The terms tell you to look at the retailer’s website for limits on how gift cards can be used before you buy.
• Cashback can be reclaimed. If a purchase is returned, amended or cancelled, or cashback was paid in error, Cheddar can adjust or reclaim it.
• Payout is at Cheddar’s discretion. The terms say allocation and payment of cashback is at Cheddar’s discretion, within the rules of the scheme.

How to withdraw your cashback

On the Redeem cashback screen (checked 11 October 2026) you can redeem your balance to your bank with a £5 minimum, or use it towards a gift card. Cheddar’s terms say it does not charge for person-to-person payments and do not list a withdrawal fee, and its Google Play listing says there are no fees to withdraw. Check the app for current rules.

Sample rates seen in the app on 11 October 2026

Rates change over time. The highest ones are mostly on coffee chains, where you prepay a gift card for a shop you visit often. They only make sense if you were going to spend that money there anyway.

A worked example

Say you spend £80 a week in store at Tesco and the rate stays at the 3.5% we saw on 11 October 2026. That is £2.80 back on the shop, or around £145 over 52 weeks if the rate never changed. In practice rates move, and you only benefit if you buy gift cards for money you would have spent anyway. Buying £500 of gift cards at once to chase cashback would tie up your money for little extra gain.

How to use Cheddar more safely: step by step

1. Check the company first. Search Cheddar Payments Limited on the FCA’s Financial Services Register.
2. Start small. Buy one gift card for a shop you are about to do.
3. Check the rate and where the card works (in-store, online or both) and read the retailer’s gift card rules before you pay. Remember it is final once bought.
4. Spend the card quickly rather than stockpiling balances.
5. Withdraw your cashback once you reach the £5 minimum instead of leaving it in the app.
6. Do not let the account go dormant. Log in and transact at least once every six months.
7. Protect your account with your PIN and your phone’s security lock, and tell Cheddar straight away if you think someone else has access.

Pros and cons

Who is Cheddar best for?

It suits people with a regular, predictable spend at supermarkets or favourite shops who are comfortable pre-paying through gift cards. It is less suitable if you want flexibility, expect to return items often, or prefer to keep your money in your bank until the moment you spend it. Other options are covered in our top 5 supermarket cashback apps guide.

Frequently asked questions

Is Cheddar legit?

Cheddar Payments Limited says it is authorised and regulated by the FCA and gives a firm reference number on its site. You can check this on the FCA’s Financial Services Register. Users do receive cashback, but the terms contain important rules, so read them first.

Does Cheddar cost anything?

It is free to download and use. You pay only for the gift cards you buy, which are for your own shopping.

How do I withdraw my Cheddar cashback?

You can redeem your cashback balance to your bank account once you reach the £5 minimum shown in the app (checked 11 October 2026). You can also use it towards a gift card. Check the app for current rules.

Can I lose money with Cheddar?

Gift card purchases are final, unused cards can be hard to refund, and cashback can be forfeited if your profile goes dormant or is disabled. Only buy cards you plan to use soon and keep your account active.

Does Cheddar work at Tesco and ASDA?

Yes. When we checked on 11 October 2026, Tesco gift cards were listed as in-store only, while ASDA gift cards were listed for online and in-store use. Rates and availability can change.

Does Cheddar still have automatic cashback?

No. Its current terms say automatic cashback closed to new rewards after 26 January 2025. Cashback now comes from gift card purchases.

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Affiliate disclaimer: UK Smart Money is a free information site. Some links on this site are affiliate links, which means we may earn a commission if you click through and make a purchase, at no extra cost to you. This never affects our editorial opinions. This article is general information, not financial advice. Savings figures are illustrative and not guaranteed. Offers, rates and terms change, so always check the app or retailer for the latest details.