CheddarGift Cards
£3 Free Cash
Value
£3
Cheddar is an FCA-authorised UK cashback app with over 250,000 users that pays you back instantly when you buy gift cards for shops you already use. Instead of waiting weeks for tracking like traditional cashback sites, you buy a Tesco or Sainsbury's gift card through the app, get cashback credited straight away (up to 15% at some retailers), then spend the gift card on your normal shopping.
Customers
250k
UK accounts
Founded
2021
5 years old
App Store
4.8 ★
3.4k reviews
Google Play
4.7 ★
1.2k reviews
Live offers
1
Worth £3
Cheddar Payments Limited is authorised and regulated by the Financial Conduct Authority as an Authorised Payment Institution, Firm Reference Number 940075. Cheddar is not a bank and your money is not protected by the FSCS.
Cheddar at a glance
Cheddar is a UK gift card cashback app from an FCA-registered EMI. Buy a card through the app, get cashback credited instantly, then spend the card at the same retailer. Quidsy has a free cash offer for new signups. Good fit if you do regular supermarket or food delivery shops. Stack with a credit card for double up.
Last checked:
- Best cashback rate
- 11% with Adidas
Current Cheddar offers
Cheddar cashback rates
Best visible rate right now: 11% with Adidas.
RetailerRate
- 11%
Adidas
- 9%
Nike
- 9%
Starbucks
- 9%
Caffè Nero
- 8.50%
Prezzo
- 8%
Costa Coffee
- 7.50%
Cineworld
- 7.50%
JD Sports
- 7.50%
Pizza Express
- 7%
Uber Eats
- 7%
H&M
- 6.50%
New Look
Review notes· 5 min read
Cheddar details
Cheddar is an FCA-authorised UK cashback app with over 250,000 users that pays you back instantly when you buy gift cards for shops you already use. Instead of waiting weeks for tracking like traditional cashback sites, you buy a Tesco or Sainsbury's gift card through the app, get cashback credited straight away (up to 15% at some retailers), then spend the gift card on your normal shopping.
The clever bit? You're buying gift cards for places you'd spend at anyway, so the cashback is essentially free money on shopping you were going to do.
It works best for organised shoppers who plan their spending. If you do a weekly supermarket shop at Tesco or pick up a Just Eat order most weeks, buying gift cards in advance means free cashback on money you'd spend regardless. It's less suited to spontaneous shoppers, because you need to remember to buy the gift card before you check out and you're committing that money to one specific retailer.
But for regular expenses like groceries, takeaways, or planned purchases, the instant cashback adds up. Cheddar won Best Newcomer at the British Bank Awards in 2024 and Best App at the Open Banking Expo Awards in 2025, so the product itself is well-regarded.
Is Cheddar legit?
Yes, Cheddar is legitimate. Cheddar Payments Limited is authorised and regulated by the Financial Conduct Authority as an Authorised Payment Institution (Firm Reference Number 940075, authorised July 2021). The company is registered at Companies House in England and Wales (No. 12895809) with its office in London. So this is a real, FCA-supervised business, not a clone or scam app.
A couple of things worth knowing about how Cheddar holds money. Cheddar is not a bank. Its own terms state it does not hold money in your account like a bank does, and your balance is not protected by the FSCS (the scheme that covers up to £85,000 in a UK bank failure). What that means in practice: when you buy a gift card, money goes from your bank to the retailer via Cheddar, and any cashback you earn sits in your Cheddar balance until you withdraw it (minimum £5) back to your bank.
To pay, you connect your bank account through Open Banking, which is regulated by the FCA and only allows transactions you approve each time. The cashback itself comes from Cheddar's commercial deal with the gift card issuer (Tillo and others), not from your bank.
Who is Cheddar for?
Cheddar works best for organised shoppers who plan their spending. If you do a weekly supermarket shop at Tesco or Sainsbury's, buying gift cards in advance means free cashback on money you'd spend anyway.
It's less suited to spontaneous shoppers or those who prefer flexibility over savings. You need to remember to buy the gift card before you shop, and you're committing that money to a specific retailer. But for regular expenses like groceries, takeaways, or planned purchases, the instant cashback adds up quickly - around £200 per year for an average household.
What does Cheddar do?
Instant cashback on gift cards
Buy a gift card through the app and Cheddar credits the cashback to your balance immediately, no 30 to 90 day tracking window like traditional cashback sites.
100+ UK retailers
Covers the supermarkets you actually use (Tesco, Sainsbury's, ASDA, Morrisons, M&S), food delivery (Just Eat, Deliveroo, Uber Eats), and high street regulars like Boots, Costa, and Starbucks.
Up to 15% cashback rates
Rates vary by retailer and change over time. Supermarkets are usually 2 to 5%, while dining, entertainment, and some non-food retailers go higher when promoted.
Pay via Open Banking, not card details
Link your bank account once and pay directly. No card numbers stored in the app, and every payment needs your explicit approval through your banking app.
Gift cards don't expire (in most cases)
You can buy when the rate is high and use the card later. Worth checking each retailer's gift card terms though, because a few have expiry windows.
Pros and cons
What stands out
5 pros- Cashback is instant, no waiting weeks for tracking or confirmation
- Covers everyday spending you'd be doing anyway, so the savings feel painless
- Open Banking payments mean no card details stored and every transaction needs your approval
- FCA-authorised Payment Institution with a clean public record
- Strong app store ratings and recent industry awards (British Bank Awards 2024, Open Banking Expo Awards 2025)
Worth knowing
5 cons- Requires planning. You have to buy the gift card before you shop, which doesn't suit spontaneous purchases
- Supermarket rates are typically 2 to 5%, the headline 15% is only on a handful of retailers
- Once you've bought a gift card you're committed to that retailer, so it's not flexible spending
- Cheddar is not a bank, and your balance is not FSCS-protected (though balances are usually small and short-lived)
- Minimum £5 withdrawal before cashback can be sent back to your bank
Cheddar is genuinely useful if you're willing to add one extra step to your shopping routine. The concept is simple: buy gift cards for shops you already use, get instant cashback, spend the gift card on your normal shop. There's no complicated tracking and no waiting months for payouts, which is the bit that puts most people off traditional cashback sites.
The savings are modest but real. Don't expect headline 15% rates on your weekly Tesco shop, because the supermarket end usually sits at 2 to 5%. Higher rates show up on dining, entertainment, and occasional retailer promotions, and they're worth keeping an eye on. If you do a regular Tesco or Sainsbury's run, that's a steady drip of cashback on spending you'd do anyway.
The app rates 4.8 on the App Store and 4.7 on Google Play, it's FCA-authorised, and it's picked up two industry awards in the last two years, so the operational side is solid.
The catch is the routine change. If you can't remember to buy a gift card before you check out, the cashback never happens. For organised shoppers who like a system, Cheddar is an easy win. For impulse buyers, it'll gather dust on your phone.
Recent ended Cheddar offers
- £3
£3 Free Cash
Ended 5 Feb 2026
Cheddar FAQs
Cheddar earns a commission from each gift card you buy through the app. Retailers and gift card issuers (Tillo is one of Cheddar's main partners) pay Cheddar a wholesale margin on every gift card sale, and Cheddar passes a slice of that margin back to you as instant cashback. Higher-margin retailers (typically dining, entertainment, and seasonal promotions) translate into the higher headline rates. Supermarkets have thinner margins, so cashback there is lower. Cheddar does not charge subscription fees or take a cut of your balance.
New Cheddar users who sign up through Quidsy currently earn £3 as a referral bonus once they complete the qualifying action. The bonus credits to your Cheddar balance and can be withdrawn alongside any cashback you've earned once you hit the £5 minimum withdrawal threshold. Bonus amounts and the exact qualifying action can change, so check the live offer page for current terms before signing up. (As of May 2026.)
Next step
Choose your route with Cheddar
£3 Free Cash is the strongest live Cheddar route we have listed right now.