Scrap Metal Reporting, Without the Paperwork.

The short answer: nearly every state has a metal-theft law requiring scrap dealers and metal recyclers to identify every seller, keep detailed purchase records, and make them available to law enforcement — and a growing number of jurisdictions require electronic reporting, usually through LeadsOnline. PawnSmarts handles that compliance core from one buy ticket: scan the seller's driver's license, record the material, and the report to LEADS Online submits automatically when the ticket saves.

Why scrap dealers report

Copper wire stripped from job sites, catalytic converters cut from parked cars, AC units pulled off slabs — metal theft is fast, anonymous and lucrative, and the scrap yard is where stolen metal turns into cash. Legislatures responded: state metal-theft and secondary-metals-recycler laws now impose seller identification, record-keeping and reporting duties on recyclers much like the ones pawnbrokers have carried for decades. Many jurisdictions add restrictions on top — hold periods before material is processed, limits on cash payment for certain metals like catalytic converters and copper, and extra documentation for high-theft items. The specifics are set by your state statute and local ordinance; our requirements-by-state guide explains how those layers fit together, and the step-by-step LeadsOnline guide covers getting enrolled.

What the record has to show

Details vary by state, but the common core of a compliant scrap purchase record is:

• Who sold it — name, address, date of birth and government photo ID, often with a physical description.
• What was purchased — metal type and description of the material, with identifying details (and serial numbers, where the item has them — equipment, tools, converters with etched IDs).
• The transaction — date, amount paid and payment method.
• Supporting details your state may require — many metal-theft laws also call for recording the seller's vehicle and license plate, and some require photographs of the material. Know your statute's list and capture all of it at the point of purchase.

How PawnSmarts covers the compliance core

• Seller identity, scanned not typed. The driver's-license barcode fills name, address, DOB and physical description on the buy ticket — the identity fields reporting requires, captured in seconds. Sellers are screened against the OFAC sanctions list automatically.
• The purchase, documented. Material description, quantity, identifying numbers and notes for any additional details your state requires — recorded once, at the scale-house window or the counter.
• The report sends itself. With LEADS Online reporting enabled, each saved purchase submits to law enforcement automatically — no portal retyping at close, no missed days. A file-export option covers jurisdictions that want manual upload; if you're keying purchases into the portal by hand today, see what that costs.
• Holds, enforced. Where your jurisdiction imposes a hold before material can be resold, the hold date rides on the item and blocks sale at the register until it clears.

Buying precious-metal scrap too?

If your operation also buys gold, silver or platinum scrap across the counter, the full precious-metals toolkit is built into the same buy ticket: melt-value calculator, live spot prices for four metals, weights straight off a connected scale in grams, dwt or troy ounces, and purity presets from 24K down to sterling and coin silver.

Every operation runs differently — commodity volumes, scale-house workflow, state-specific documentation. Tell us how your yard buys and we'll walk you through exactly how PawnSmarts fits it, on a real demo with your scenarios.

Frequently Asked Questions

This page is general information, not legal advice — verify your obligations with your state statute and local authorities. PawnSmarts is independent software for pawn, secondhand and recycling businesses and is not affiliated with or endorsed by LeadsOnline, LLC. LeadsOnline is a trademark of its owner.