Sims Metal Management has introduced a new system of cashless scrap metal trading as a way to curb fraud and adhere to anticipated regulation changes. Beginning this month, traders and members of the public trading with Sims scrap metal sites (participating Newport site pictured above) will have the opportunity to have money paid directly into their bank accounts instead of receiving cash.
The cashless system, developed in conjunction with Barclaycard, allows traders to be paid by swiping a Visa Debit card and authorising the transaction with their signature. Traders are also encouraged to register with the new Sims system, providing a one-time proof of identity that won’t need to be repeated (as is the system now).
In the wake of rising concerns about the issues of scrap metal theft and fraud, the new cashless system would add extra security to transactions by requiring a signature, using electronic bank transactions, and maintaining a record system for proofs of identity.
“Forthcoming changes in legislation make payments via debit cards more attractive to scrap metal merchants and their customers. By reducing cash on the premises, this payment option will reduce the risk of fraud, theft and the cost of handling cash”, said Devendra Kumar, Director of Product and Strategy at Barclaycard.
Derek Campbell of Sims Metal Management added: “As the world’s largest metals recycler, we are keen to see how cashless trading in the UK is going to work in practice, well in advance of the legislation becoming law. That way we can iron out any teething troubles before the [cash transaction] ban takes effect.”
The aforementioned cash ban is one of several suggested changes to the Scrap Metal Dealer’s Act of 1964, being considered in parliament today (13 July). Richard Ottaway, Conservative MP for Croydon South, first proposed the Private Members Bill in June, asking the government to look at implementing tougher industry standards, granting more authority to local police forces and local partnerships to confront illegal behaviour, and introducing a ban on cash transactions.
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