Thursday, June 6, 2013
Canada-based prepaid card processor Carta Worldwide and Payment Card Solutions (UK) Ltd. launched the Bread4Scrap prepaid corporate card program designed specifically for the U.K. scrap metal industry. Using PCS's MasterCard Worldwide-branded BreadCard, the system allows scrap metal dealers to pay customers electronically.
The initiative follows in the wake of the decision by the border security and law enforcement arm of the U.K. government, the Home Office, to ban cash payments for scrap metal. In the U.K., a black market has arisen around stolen scrap metal, which reportedly costs the U.K. economy 220 million a year pounds sterling (over $370 million).
In December 2012, it became illegal for scrap metal dealers to trade in cash and employ the "no questions asked" policy, which facilitated payments between "metal thieves and rogue dealers," the Home Office said. Scrap metal dealers can now be fined for making cash transactions for scrap metal and face criminal charges.
The Home Office said in January 2012 that transactions for scrap metal were often completed without sellers having to show proof of identification, or proof that sellers legitimately owned the metal being sold. The U.K agency also noted that cash payments result in poor record keeping by the metal recycling industry, which can lead to tax evasion.
The Bread4Scrap program allows scrap metal dealers to sign up customers for the BreadCard. "The system provides a full electronic audit trail of funds and PCS carries out independent verification of customers' identity within seconds to allow a customer to be issued with a funded card in seconds," the solution providers said in a statement.
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