What is SASSA's role in the card issuance and payment process? Minister of Social Development provides clarity

Minister of Social Development, Sisisi Tolashe, has clarified that the South African Social Security Agency (SASSA) does not issue social security cards, as payments are made directly into beneficiaries' bank accounts.

Tolashe was responding to a question from Freedom Front Plus Member of Parliament (MP), Tamarin Breedt, who asked for an update on the number of new cards issued and the deadlines for card conversions.

As previously reported by the Cape Times, Tolashe had expressed frustration with the process to migrate grant beneficiaries from SASSA gold cards to Postbank-issued black cards.

At that time, Tolashe highlighted that over 400,000 beneficiaries had yet to undergo the card migration process.

The South African Reserve Bank (SARB) had granted Postbank a 15-month extension after it failed to meet the conditions of the Designation Notice, which now prevents the bank from issuing new cards.

In her parliamentary reply, Tolashe explained that, according to regulation 29 of the Social Assistance regulations, SASSA pays all social grant beneficiaries directly into their bank accounts.

"Each bank issues its own cards (or other transactional instruments); hence, SASSA does not issue any cards," she said.

Regarding the conversion of cards, Tolashe made it clear that her department has no authority to set deadlines for card replacements.

The responsibility for issuing and replacing cards lies with the banks, particularly Postbank, which is regulated by SARB.

"The department has not set, nor has the authority to set any requirements for the issuing of cards by banks," she said.

Tolashe further referred to a recent gazette published on 29 August 2025, which granted Postbank an additional 15 months to complete the replacement of remaining cards, including the current black cards, which are set to expire.

"From the gazette published by the SARB on 29 August 2025, Postbank has been given a further extension of 15 months from the date of publication to replace their remaining cards and up to the expiry date of the current black cards to replace them as well," Tolashe said. 

This extension follows the termination of SASSA's agreement with Cash Paymaster Services in 2018, after which SASSA entered into a Master Services Agreement (MSA) with the South African Post Office.

However, as the agreement with Postbank no longer served its purpose, SASSA decided to terminate the contract, exercising its right to do so under the terms of the agreement.

hope.ntanzi@iol.co.za 

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