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One of the most searched questions about scrap yards is:
“Do scrap yards still pay cash?”

The answer is no — and for good reason.

This article explains what UK law says about cash payments, how you’ll be paid instead, and why licensed facilities like London Metal Recycling operate differently from rogue traders.

Why Scrap Yards No Longer Pay Cash

Under the Scrap Metal Dealers Act 2013, cash payments for scrap metal are illegal in the UK. This law was introduced to:

  • Reduce metal theft

  • Improve traceability

  • Protect legitimate sellers

Any scrap yard offering cash should be avoided.

How Do Scrap Yards Pay Now?

Licensed facilities pay via:

  • Bank transfer

  • Cheque (less common)

Payments are fast, secure, and traceable.

Why This Protects You

Non-cash payments:

  • Create a legal transaction record

  • Prevent fraud

  • Protect you if disputes arise

At London Metal Recycling, payments are typically made the same day.

What About Vehicle Scrapping?

Scrap vehicle payments are also non-cash only and processed once your car is collected and logged.

👉 Get started with a free scrap vehicle quote.

Buying Used Parts — Why It Matters

The same traceability rules apply to parts. Used vehicle components sold through licensed ATFs are removed, logged, and handled correctly.

👉 View our used vehicle parts sourced directly from our ATF.

FAQ – Scrap Yard Payments

Is it illegal for scrap yards to pay cash?
Yes — cash payments are banned in the UK.

Why do some yards still offer cash?
They’re operating illegally and should be avoided.

Do I need ID to sell scrap metal?
Yes — photo ID is required.