Summary
Pay by bank lets you :
👉 Pay directly from your bank account without using a debit or credit card.
👉 On Cheddar, it’s how you buy gift cards securely and get cashback instantly.
How pay by bank works on Cheddar
When you buy a gift card in Cheddar, you pay using Pay by Bank instead of a card.
Here's what happens:
- You choose a gift card and amount
- You select your bank
- You approve the payment in your banking app
- The payment completes instantly
- Your gift card appears in the app
- Your cashback is added straight away
There’s no need to enter card details, and no money is held by Cheddar longer than necessary to complete the purchase.
Why Cheddar uses pay by bank
Cheddar uses pay by bank because it’s:
- Faster – payments are confirmed instantly
- More secure – you approve everything inside your own banking app. No card details are shared
- More reliable – no card declines or expired card issues
- Better for instant cashback – lower fees = higher cashback for users
This is what allows Cheddar to add your cashback before you shop, rather than days or weeks later.
What you’ll see when you pay
When you tap “Pay by bank”:
- You’ll be redirected to your bank’s secure app or website
- You’ll see the exact amount you’re paying
- You’ll approve the payment using Face ID, fingerprint or your banking PIN
- You’ll be returned to Cheddar once the payment is complete
Cheddar never sees or stores your bank login details.
Key thinks to know
- Pay by bank is powered by open banking
- Cheddar is authorised and regulated by the Financial Conduct Authority
- Payments are one-off. Cheddar can’t take money without your approval
- You stay in control inside your own banking app
- There are no fees for using pay by bank
How this is different from card payments
| Pay by Bank | Debit / credit card |
| Approved in your bank app | Card details entered online |
| Instant payment confirmation | Can be delayed or declined |
| No card details shared | Card details shared with merchants |
| Enables instant cashback | Often requires waiting |
Common questions
Does Cheddar have access to my bank account?
No. Cheddar can’t move money, see passwords or make payments without you approving them.
Can Cheddar take money automatically?
No. Every payment requires your explicit approval in your banking app.
What if my payment fails?
If a payment fails, no money leaves your account and no gift card is issued. You can try again or choose a different bank.
Is pay by bank safe?
Yes. It uses the same security standards as your bank and is regulated under UK open banking rules.
What to do next
Next: Learn how open banking works and how your data is used
→ Open banking and your data
Or, if you’re ready to buy:
→ Buying and using gift cards