Pawn Shop Rules and Regulations

4473, Form – A Firearms Transaction Record, or Form 4473, is a United States government form that must be filled out when a person purchases a firearm from Federal Firearm License holder (such as a gun shop).

1D Barcode – A 1D barcode is a series of vertical lines that is an optical machine-readable representation of data relating to the object to which it is attached. Originally barcodes systematically represented data by varying the widths and spacing of parallel lines, and may be referred to as linear or one-dimensional.

2D Barcode – Barcodes evolved into rectangles, dots, hexagons and other geometric patterns in two dimensions (2D).  Also known as QR codes. Frequently the term 3D barcode is used, but this is generally incorrect as a 3D barcode has depth, is engraved and only used in very specialized applications.

Amortization Schedule – The process of paying off a debt, loan or mortgage over time through regular payments. A portion of each payment is for interest while the remaining amount is applied towards the principal balance. The percentage of interest versus principal in each payment is determined in an amortization schedule.

APR – The term annual percentage rate (APR), also called nominal APR, and the term effective APR, also called EAPR, describes the interest rate for a whole year (annualized), rather than just a monthly fee/rate, as applied on a debit, loan, mortgage, credit card, etc.

ATF – The Bureau of Alcohol, Tobacco, Firearms and Explosives is a federal law enforcement organization within the United States Department of Justice. The ATF also regulates via licensing the sale, possession, and transportation of firearms, ammunition, and explosives in interstate commerce.

Auction – An add-on module for Pawn Master that provides a virtual inventory location used for tracking items that have been listed in various web-sites. Items moved to auction can still be sold from the shop and additional reports are available.

Barbell label – See Jewelry Label.

Barcode – A barcode is an optical machine-readable representation of data relating to the object to which it is attached. Originally barcodes systematically represented data by varying the widths and spacing of parallel lines, and may be referred to as linear or one-dimensional.

BATF – See ATF above.

Bin Number – The system used buy the shop used to locate stored merchandise. May be boxes, selves, cabinets, safes etc. . .

Blind Closeout- The act of totaling the funds in a cash drawer without having the expected total know at the time of summing the funds.

Buy Option – Is a contract to provide the seller the first opportunity to buy back goods sold within the duration of the contract. Buy Option contracts are often used where pawn loans are restricted or prohibited by law.

Compounding Interest- When interest is added to the principal, so that, from that moment on, the interest that has been added also earns interest. The period the interest is compounded may be, daily, monthly or annually.

Counterfeit – To imitate something. Counterfeit products are fake replicas of the real products.

Currency Delimiter- Symbol use for a currency digit separator, used for ease of reading. Different cultures use different symbols for the decimal mark.

Date out – The date that items being held become available to move into sales inventory.

Debit Card – A card issued by a bank allowing the holder to transfer money electronically to another bank account when making a purchase.

Depreciated value- is the loss in value that naturally occurs as an object is put to use or ages. When determining this value, use a mathematical formula that will take into consideration the original value of the item, the scrap value of the item and the expected age of the item.

Dumbbell label – See Jewelry Label.

DWT – A pennyweight (abbreviated dwt) is a unit of mass that is equal to 24 grains, 1⁄20 of an International avoirdupois ounce, 1⁄240 of an international avoirdupois pound and exactly 1.55517384 grams.

Eat the tax – A formula to recalculate the discount so that the final price includes all taxes.

Encoding – A method of encrypting information that appears on labels using a number/letter substitution cypher.

FFL – A Federal Firearms License (FFL) is a license that enables an individual or a company to engage in a business pertaining to the manufacture of firearms and ammunition or the interstate and intrastate sale of firearms.

Financial Instruments – a tradable asset of any kind; either cash or is a document guaranteeing the payment of a specific amount of money, either on demand, or at a set time, without conditions.

Forfeit – Lost or surrendered pledged property for failure to pay a loan. (see also Pulls)

Grace Days – A set time period allowed before a penalty is applied.

Gram – Is a metric system unit of mass, defined as one one-thousandth of the kilogram. One International avoirdupois ounce (oz) = 28.349523125 grams (g)

Hold Period – A number of days, usually required by law, before an action can be completed. Such as from the time a firearm is paid for before it may leave the shop or the number of day that must pass before the collateral on a defaulted loan can be sold.

Installment – A sum of money due as one of several equal payments for something, spread over an agreed period of time: “paid in installments”.

Interest – a fee paid by a borrower of assets (money) to the owner as a form of compensation for the use of the assets.

Jewelry Label – A specialized label with a narrow section used to minimize or eliminate adhesive marring the item it is attached to.

Karat – The carat or karat (symbol: K or kt) is a unit of purity for gold alloys. 24kt is considered to be pure gold with no other alloying metal added. Gold purity is calculated by dividing the karat by 24 (22kt = 91.6% pure).

KeyDX – An add-on module for Pawn Master that uploads over fifty reports to a secure website for retrieval to any web-enabled device anywhere web access is available.

Layaway – An agreement in which the seller reserves an item for a consumer until the consumer completes all the payments necessary to pay for that item. Rather than taking the item home and then repaying the debt on a regular schedule, as in most installment plans or hire purchases, the layaway customer does not receive the item until it is completely paid for.

Mag Stripe – A magnetic stripe card is a type of card capable of storing data by modifying the magnetism of tiny iron-based magnetic particles on a band of magnetic material on the card. The magnetic stripe, sometimes called swipe, is read by swiping past a magnetic reading head.

Markdown – A reduction in price.

Markup – The amount added to the cost price of goods to cover overhead and profit.

Memo – Short for memorandum, memos are a method of tracking inventory assigned to a 3rd party to sell on behalf of the shop.

Memorandum of extension – A short written statement outlining the terms of an agreement,

T transaction, or contract.

Negotiable instrument – see financial instrument.

Option – See Buy Option.

Ounce – Abbreviated oz, from the former Italian word oncia;  is a unit of mass with several definitions, the most commonly used of which is equal to approximately 28 grams.

Pawn – Another name for a pledge. To provide a physical asset to warranty repayment of a debit.

Penny Weight – See dwt.

Principle – The amount borrowed or the amount still owed on a loan, separate from interest.

Prorate – To divide, distribute, or assess proportionately.

Pulls – Items that have forfeited and are eligible to be added to inventory to sell. Any required hold periods have expired.

Quick Quote – Module available for Pawn Master. This Module allows adding more metal types in addition to yellow gold.

Rat tail label – See Jewelry Label.

Rate table – A group of values measured in amounts of funds and percentages used to calculate the terms of a loan.

Redemption – To pay off, such as for a promissory note.

Regulation Z – A specific Federal Reserve Board regulation that requires debt lenders to disclose all the specifics of a given loan. This was done to promote a level of credit protection for the underlying consumer. Most of the requirements imposed by the 1968 Truth in Lending Act are contained within Regulation Z, and the two terms are often used interchangeably.

Scrap – The act of removing metal from inventory to be sent to the refiner.

Scrap bucket – An inventory location in Pawn Master used to hold items allocated to be sent to the refiner. The shop may or may not have an actual physical bucket or buckets for scrap jewelry.

Simple Interest – Determined by multiplying the interest rate by the principal by the number of periods. It is called simple because it ignores the effects of compounding.

SMS – Short Message Service is a text messaging service component of phone, web, or mobile communication systems, using standardized communications protocols that allow the exchange of short text messages between fixed line or mobile phone devices.

Statement – A printed history of all payments made. A formal record of the financial activities of a person, business or other entity.

Surveillance – is the monitoring of the behavior, activities, or other changing information, usually of people for the purpose of influencing, managing, directing, or protecting property.

Text Messaging – A module available for installation in Pawn Master used to send payment reminders and promotion alerts.  (see also SMS)

Ticket – A pawnbroker’s receipt for articles taken as security bearing particulars of the loan.

Title – The certificate of title for a vehicle (also known as a car title or pink slip) is a legal form, establishing a person or business as the legal owner of a vehicle

Title loan – is a type of secured loan where the borrower can use their vehicle title as collateral.  Borrowers who get title loans must allow a lender to place a lien on their car title, and temporarily surrender the hard copy of their vehicle title, in exchange for a loan amount.

Truth in lending- See Regulation Z

Vender – A person or agency that sells merchandise to the shop for immediate resale.

Void – To undue a transaction. A record of the void is retained.

WCSA – Watch Certification Services of America – Don’t Buy Fake Rolex Watches. A database of counterfeit watches: http://www.watchcsa.com/