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Proper recordkeeping is the single most important ongoing compliance obligation for scrap metal dealers. It is also where most violations are found during inspections — not because dealers are doing anything wrong, but because records are incomplete, disorganized, or not retained long enough.

Required Fields for Every Transaction

For catalytic converters: additionally the source vehicle VIN, ownership proof type, and required photos. See the catalytic converter guide.

Retention Periods

Most states require 1–3 years. Texas and most southeastern states require 2 years. Georgia and Virginia require 3 years. Ohio and Pennsylvania require 1 year. When operating in multiple states, retain for the longest period required — typically 3 years — to eliminate tracking complexity.

Electronic vs. Paper

Both are acceptable in most states. Electronic records are strongly preferred because they are searchable, exportable quickly during inspections, and support electronic reporting to state systems. If using paper, keep locked, date-organized binders with a separate section for catalytic converter transactions.

Access During Inspections

Records must be available for inspection immediately during business hours in most states. Design your system so any record from the past 3 years can be produced within 5 minutes.


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Recommended Tool

Thermal Receipt Printer for Transaction Logging

High-volume scrap yards benefit significantly from a dedicated thermal receipt printer at the purchase counter. Printing a transaction voucher for every seller — with the hold period expiration date, agreed amount, and a reference number — satisfies the "payment voucher" requirement, gives sellers a professional receipt, and creates a physical backup of your electronic records. Look for a model with direct thermal printing (no ink cartridges), a USB and Bluetooth connection for integration with your management software, and a paper roll width of 80mm (standard for POS use).

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FAQ

Purpose-built scrap yard management platforms are the industry standard for any dealer with significant volume. Popular options include ScrapWare, Cycle Count, and Scrap Dragon. These handle transaction recording, ID capture, electronic reporting integration, and retention tracking. For small operations, structured spreadsheets work but require disciplined maintenance. Purpose-built software is strongly recommended to reduce compliance risk.
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