PawnSmarts comes pre-configured for Pennsylvania's Pawnbrokers License Act — it enforces the 3% aggregate charge cap, tracks 4-month terms and the 7-month forfeiture window, and keeps the records the PA Department of Banking and Securities expects.
Pennsylvania pawn law caps the total of all charges on a pawn loan at 3% per month of the principal — interest, storage, insurance and every other fee combined — under the Pawnbrokers License Act, with a 4-month term and a 7-month minimum hold before any item can be forfeited. That all-in ceiling makes Pennsylvania one of the most borrower-friendly states in the country, and it leaves no room for charge-math mistakes on a ticket. PawnSmarts is configured for the Commonwealth out of the box: it holds every ticket under the 3% aggregate cap, tracks the 4-month term and 7-month forfeiture clock, and exports the records the PA Department of Banking and Securities expects — whether you're in Philadelphia, Pittsburgh, Scranton, Erie or Pottsville.
Pennsylvania pawnbrokers are licensed and regulated by the Pennsylvania Department of Banking and Securities under the Pawnbrokers License Act (63 P.S. §§281-1 to 281-32), with implementing regulations at 10 Pa. Code Chapter 61. The 3% aggregate-charge limit was set by Act 163 of 1994. PawnSmarts is configured against these rules so your tickets, charges and timelines line up with what the statute requires.
Pennsylvania law caps the total of all charges — interest, storage, insurance, investigation and any other service fee — at 3% per month on the principal. It is not 3% interest plus fees. It is 3% total, period. That puts Pennsylvania among the most borrower-friendly states in America.
PawnSmarts adds interest, storage and every other fee together and holds the total under the 3% ceiling automatically, so a clerk can't accidentally write a ticket that violates the cap.
On a $1,000 loan held three months, the difference between Pennsylvania's all-in cap and states that allow stacked service charges is dramatic.
| State | Monthly Charges | 3-Month Total on $1,000 |
|---|---|---|
| Pennsylvania | 3% total (all fees included) | $90 |
| Tennessee | 2% + 20% service = 22% | $660 |
| Indiana | 3% + 20% service = 23% | $690 |
| Georgia | 25% (first 3 months) | $750 |
| Alabama | 25% | $750 |
A Pennsylvania pledgor pays about $90 where a Georgia or Alabama borrower pays $750 on the same loan — the strict cap is exactly why getting the charge math right matters so much in this state.
Pennsylvania pawn loans typically run on a 4-month term. When pledgors make interest payments, the pawnbroker extends the loan, and customers may request a longer term at the time of the loan. Critically, no pledge can be forfeited before 7 months — even if the 4-month term expires and the pledgor stops paying, the item must be held at least seven months from the loan date before disposition. That is one of the longest minimum hold periods in the nation.
Here's how a standard timeline plays out, and how PawnSmarts tracks it:
PawnSmarts counts the 7-month deadline from the loan date and flags an item for disposition only when the law actually allows it. It also surfaces the loans that need a 6-month courtesy notice, so pledgors get a chance to pay accrued interest before anything is forfeited.
Getting and keeping a Pennsylvania pawnbroker license under the Pawnbrokers License Act involves several specific requirements that PawnSmarts helps you document and stay ahead of:
For the full national picture and the documents each state expects, see our US state pawn licensing guide.
Pennsylvania pawnbrokers must keep accurate pledge records and report transactions to law enforcement. PawnSmarts scans the pledgor's ID to auto-fill name, address, date of birth and ID number, photographs the item, and runs OFAC compliance checks — then exports cleanly to LEADS Online and generates the police reports your jurisdiction requires. Everything is captured once and available on screen or in print in seconds.
Interest, storage and all fees are totaled together and held under the 3% monthly ceiling on every ticket.
4-month terms with extensions, plus a 7-month forfeiture clock measured from the loan date.
Pledge records, the $1 per-pledge reporting fee and the documentation the Dept. of Banking and Securities expects.
ID scan, item photos, OFAC checks and one-click export to LEADS Online and police reports.
PawnSmarts is $89/month for Essential or $129/month for Professional — month to month, cancel anytime, no contract and no setup fee. Prefer to own it outright? Professional is also available as a one-time purchase for $2,995. If you use integrated credit-card processing, the software can be free. It works offline and auto-syncs, and it runs on Windows, Mac, iPad, Android or any phone in a browser.
From the big Philadelphia and Pittsburgh operations to single-store shops in Pottsville, Scranton and Erie, the same strict 3% cap and 7-month rule apply — and PawnSmarts gives every shop the same professional compliance. See the full list of states we serve, or open the live demo and write a Pennsylvania ticket yourself.
Pennsylvania's Pawnbrokers License Act, as amended by Act 163 of 1994, caps the total of all charges — interest, storage, insurance, investigation fees and any other service charge — at 3% per month on the loan principal. That is an all-in aggregate ceiling, not a base interest rate with fees on top. On a $1,000 loan, nothing more than $30 may be collected in any given month. PawnSmarts adds every charge together and holds the total under the 3% ceiling automatically, which helps a clerk avoid writing a ticket that exceeds the cap.
Pennsylvania requires pawn loans to run on at least a 4-month term, and no pledged item may be forfeited until at least 7 months have passed from the original loan date — even if the pledgor stops paying after the initial term expires. This is one of the longest minimum hold periods in the United States, giving customers a meaningful window to reclaim their property. PawnSmarts measures the 7-month clock from the loan date and only flags an item for disposition when the law actually allows it.
Pennsylvania pawnbrokers are licensed and regulated by the Pennsylvania Department of Banking and Securities under the Pawnbrokers License Act (63 P.S. §§ 281-1 to 281-32). Each licensed office must maintain a minimum of $10,000 in capital, and applicants must post a surety bond, publish the application in a local newspaper, and participate in a public hearing before a license is granted. PawnSmarts helps you document and keep ahead of these renewal, bond and reporting requirements.
Yes. Pennsylvania pawnbrokers must keep accurate pledge records and report transactions to law enforcement, and the Act permits a $1 per-pledge governmental reporting fee. PawnSmarts scans the pledgor's ID, photographs the item, runs an OFAC check, and exports cleanly to LEADS Online while generating the police reports your jurisdiction requires.
Pawn shop software pricing varies by vendor, but it should fit a single-store or multi-store Pennsylvania operation without a long-term commitment. PawnSmarts is $89/month for Essential or $129/month for Professional — month to month, no contract and no setup fee — or a one-time purchase of $2,995, and it can be free with integrated card processing. Migration from another system is a one-time $395 and most shops switch in under 24 hours.
Open the live demo and click around. If it looks right, sign up and we'll move your data for $395.
Questions? [email protected] · 800-710-6184