Callcredit hopes to reduce costly fraud incidents for pawnbrokers.
By Jessica Knowles
The National Pawnbrokers Association (NPA) has signed a deal with payment validation service Callcredit, offering its members further protection from fraudulent payments and money laundering.
Callcredit is an ID and verification specialist. It is hoped that the new system will benefit pawnbrokers by to safeguarding them against money laundering, fraud and inadvertently receiving stolen goods.
The system includes a service called CallValidate that has been developed in line with the BJA, NAG and NPA’s Gold Standard and its code of practices. CallValidate goes beyond a basic paper based identity check by assessesing the potential for fraud, checking names, addresses, dates of birth and bank account information. This is also set to improve customer service by removing the need for customers to provide physical proof of identity.
Callcredit managing director Peter Mansfield said: "We are pleased to be working with the NPA and to be helping their members verify each customer using a market leading solution. CallValidate will help members trade responsibly and compliantly, providing both the pawnbroker and the customer with a sense of added security whilst acting as a deterrent to offenders attempting to launder money or dispose of stolen property."
CallValidate verifies a customers’ identities in line with the Joint Money Laundering Steering Group guidelines, using the full electoral roll and a range of qualified data sets including personal account performance data shared between UK banks, building societies and other lenders. All information is then checked against the live banking network to confirm that the card or bank details are correct and match those of the customer, providing a pass or fail in less than two seconds.
The NPA’s chief executive Ray Perry said: "The NPA exists to safeguard the interest of pawnbrokers, by collaborating with ID and verification specialist Callcredit and providing CallValidate at an affordable cost to our members, this will help us to protect our members’ interests whilst saving them from costly charge backs.
"CallValidate will make a big difference to our members and their customer’s experience providing a seamless and quick solution to the ID verification process."
The UK pawnbroking industry is said to be growing at a rate of 15% each year with consumers preferring the speed and convenience of pawnbroking for small cash sums. There are 2,187 pawnbrokers and money shop stores in the UK of which 90% are members of the NPA.