Published Last updated Written and reviewed by the Resale Intelligence team
This document describes how the system actually works and is being reviewed by legal counsel. The wording may change before full launch.
On this page
A pawn keeps ownership with the customer; a redemption sale passes it but allows buy-back; buying gives it to the store. Only buying can be recorded today.
Many second-hand shops handle three deals that look alike: taking a pawn, buying with a right of redemption, and buying outright. Legally and in the books they are very different, so this system always keeps the three apart and never lets one stand in for another.
Side by side
| Point | Pawn | Sale with right of redemption | Buying |
|---|---|---|---|
| Who owns the item | The customer still owns it; the store holds it as security | Ownership passes to the buyer when the contract is made | The store owns it at once |
| Can the customer get it back | Yes, by redeeming under the contract | Yes, if they redeem within the agreed time and the time the law allows | No, unless the store agrees to sell it back |
| What the customer receives | A loan that carries interest | The redemption sale price, bought back at the agreed price | The purchase price |
| Main law | Pawnshop Act B.E. 2505; a pawnshop licence is required | Civil and Commercial Code, sale with right of redemption | Civil and Commercial Code, sale; and the Act on the Control of Auctions and Trade in Old Goods for second-hand dealers |
| In this system | A separate transaction, not open yet | Cannot be recorded | Available now |
Why the system keeps them apart
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Stock and cost: a bought item enters stock with its cost; a pawned item still belongs to the customer, so it is not a store cost.
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Cash: money paid out for a pawn is principal waiting to come back with interest, not money spent on goods.
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Documents: a purchase voucher states that the seller is the lawful owner and transfers ownership to the store, which is not true of a pawn or a sale with right of redemption.
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Profit: record the wrong type and the true profit per item and every report go wrong with it.
What the system supports today
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Buying: available now. By default the store records the seller with their ID number, and the purchase voucher carries the ownership declaration and signature lines.
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Pawn: designed as a separate transaction, but closed until the rules of the Pawnshop Act pass legal review. See Pawn is not open yet.
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Sale with right of redemption: cannot be recorded in the system yet.
What to do meanwhile
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Record only outright purchases on the intake screen.
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Don't record a pawn or a sale with right of redemption as a purchase, because the customer's rights and the store's obligations are different.
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If you are unsure which kind of deal your store makes, or which licence it needs, ask a lawyer.