Short answer: yes. Since the Scrap Metal Dealers Act 2013 came into force, it has been illegal for any licensed scrap metal dealer or collector to pay cash for scrap metal in the UK. Payment must be made by bank transfer, cheque, or another traceable method.
Why cash was banned
Before the Act, cash-for-scrap was a well-known route for disposing of stolen metal — particularly copper stripped from railway lines, church roofs, and telecoms infrastructure — with no record of who sold it or where it came from. Removing cash as an option, and requiring ID checks on every transaction, was designed specifically to close that loophole.
What this means if you’re selling
If a buyer offers you cash for scrap metal, one of two things is true: either they’re operating outside the law, or they’re not actually a licensed dealer at all. Neither is a good position to be dealing with, regardless of how convenient a cash-in-hand offer might look in the moment.
A legitimate transaction should always involve:
- A request for photo ID and proof of address
- Payment by bank transfer or another traceable method — never cash
- Some form of record of the transaction (a receipt, a digital record, or both)
What to do if you’re offered cash
Politely decline and ask how they intend to pay you legally. A genuinely licensed dealer will have no issue with this — it’s simply how they’re required to operate. If they push back or disappear, that tells you what you need to know.
The upside of doing it properly
Beyond staying on the right side of the law, a traceable, ID-verified transaction protects you too — there’s a record if a dispute ever arises over weight, price, or payment. Cash might feel simpler, but it leaves you with no protection if something goes wrong
Every merchant transaction on ScrapBays runs through verified, compliant buyers — no cash, no shortcuts. See how it works→