Case Study - Bread4Scrap bmra logo

b4s card

In 2012, PCS identified a new application for prepaid cards: helping the scrap metal industry to deal with new legislation outlawing cash payments for scrap. In consultation with the British Metals Recycling Agency and the Home Office we brought to market a revolutionary new product.

The Bread4Scrap solution is unique in the scrap metal industry. It combines innovative, secure EMV card packaging (including PIN) with a unique corporate loading and float management system to ensure that cards can be issued securely and legally out in the field and importantly cards can be used immediately.

Bread4Scrap is the only solution in the industry which delivers this value proposition.

The objective was to reduce the amount of metal theft in the UK.

We have brought an industry that was used to dealing almost exclusively in cash into the world of card based electronic payments and assisted in reducing recorded crime as a result.

In December 2012 the Legal Aid, Sentencing and Punishment of Offenders Act (LASPO) was enacted. LASPO included specific legislation relating to the payment of cash within the scrapmetals industry. The result was to effectively ban cash from all scrap metal payments and move the industry into the world of electronic payments and/or cheques. The objective was to reduce the amount of metal theft in the UK.

As the initial Home Office guidelines were unclear, PCS successfully lobbied MPs and civil servants to included e-money, fully (KYC) verified accounts (prepaid cards) within the list of accepted payment instruments. As a result of this campaign, Bread4Scrap was born.

PCS set up with a new BIN sponsor / issuer and data processor and brought the product to market (including the establishment of a new BIN) within 10 weeks.

Currently the Bread4Scrap system is deployed in over 100 scrapyards across the UK, loading in excess of £50 million per year.

Our solution allows our clients to issue new cards simply, securely and quickly, and to load and reload existing cards at the touch of a button. We believe that we are the only solution which includes a full electronic KYC and sanctions check at the point of issuance. As a result we only required paper ID documents to be checked in exceptional cases.

Every customer is provided with a secure internet-based system which allows the registration of new customers including the upload of ID documents for non e-verified customers, loading and unloading of cards from a managed float account, full reporting and user maintenance. This allows the customer to be entirely self-servicing and the need for customer service is minimised.

'Having tested other prepaid options we found the Bread for Scrap prepaid card unique and cost effective. PCS Prepaid Bread Card not only offered us a solution to the new legislation changes but gave our customers flexibility and security, running alongside a flawless customer service.'

Julian Howes, Managing Director, Vinton Metals Limited.

The program launched in December 2012 to immediate strong demand, which has continued throughout 2013. Currently the Bread4Scrap system is deployed in over 100 scrapyards across the UK, loading in excess of £50 million per year.

Bread4Scrap is part of the Bread4Business family of PCS card products, which aim to help all industries reduce or eliminate cash from their business processes.

Payment Card Solutions is a BMRA Service Provider.

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