Do I need a 4473 to give a customer back their own pawned gun?

Yes. Redemption is a transfer from a licensee to a non-licensee, so Form 4473 and a background check apply unless a state permit exemption covers it.

Can a Type 01 dealer take firearms in pawn?

No. Pawn transactions in firearms require the Type 02 pawnbroker license.

Type 02 FFL — Pawnbroker

The Type 02 is a dealer license for pawnbrokers. It covers ordinary dealing plus taking firearms in pawn — which is where most of the added recordkeeping risk lives.

Updated 2026-08-10

What It Allows

A Type 02 licensee may do everything a Type 01 dealer may do and may also take firearms in pawn as collateral for a loan. The fee is the same as a Type 01: $200 for three years, $90 to renew.

Pawn And Redemption Are Regulated Transfers

Taking a firearm in pawn is an acquisition and must be recorded. Returning it to the pledgor on redemption is a disposition that requires a Form 4473 and a NICS check, because the pawnbroker is transferring a firearm from inventory to a non-licensee — even though the customer originally owned it.

Record the pawn as an acquisition in the bound book on receipt
Run Form 4473 and NICS on redemption, not just on retail sale
Apply the same multiple-handgun-sale reporting rules to redemptions where they apply
Follow state pawn holding periods and law-enforcement reporting rules on top of federal law

Common Compliance Failures

Inspection findings for pawnbrokers cluster around untimely bound-book entries on pawned firearms, releasing a redeemed firearm without a 4473, and inventory that does not reconcile because pawn and retail stock are tracked in separate systems.

Fees, forms and processing rules change through ATF rulemaking. Confirm current requirements with ATF and your state and local authorities before you file.

Frequently Asked Questions

Do I need a 4473 to give a customer back their own pawned gun?: Yes. Redemption is a transfer from a licensee to a non-licensee, so Form 4473 and a background check apply unless a state permit exemption covers it.
Can a Type 01 dealer take firearms in pawn?: No. Pawn transactions in firearms require the Type 02 pawnbroker license.

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Educational content only. FFL Elite is not a law firm and does not provide legal advice. Verify all requirements with ATF and your state and local authorities.