SASSA Ends Postbank Deal but Assures Beneficiaries of Uninterrupted Payments

The South African Social Security Agency (SASSA) has confirmed that it has officially terminated its service agreement with Postbank, raising concerns among millions of grant beneficiaries. However, the agency insists that grant payments to nearly three million beneficiaries will not be disrupted.

SASSA explained that beneficiaries who use Postbank accounts will continue to receive their grants as usual. “Every client with Postbank has a bank account, and they will still be able to withdraw at ATMs, swipe at retailers, and transact normally,” said Brenton van Freda, SASSA’s Executive Manager for Grant Operations.

New biometric system from October

From next month, all new applicants will be required to undergo mandatory biometric registration in a bid to curb fraud. SASSA has piloted the system, which captures fingerprints and voice data, and says improvements have been made to avoid long queues similar to those experienced during previous card swaps.

Van Freda admitted there is always risk when moving from pilot to full-scale rollout but stressed that risk mitigation and fallback systems are in place. He added that existing beneficiaries will gradually be added to the biometric database during routine visits or reviews, with the long-term goal of enrolling all 19 million clients.

Pensioners hit by unauthorized deductions

Despite these advances, many elderly beneficiaries continue to raise concerns over unauthorized funeral policy deductions from their grants. Reports suggest that pensioners in Limpopo and other provinces have discovered monthly deductions for policies they claim never to have signed.

SASSA maintains that biometric and voice verification is required for such deductions and that complaints are investigated through a dispute resolution mechanism. If insurers are found guilty of irregular practices, refunds are made and repeat offenders are barred from the system.

However, some deductions are linked to bank debit orders outside SASSA’s control. In such cases, beneficiaries are advised to resolve disputes directly with their banks under Reserve Bank regulations.

No disruption expected in October

With the termination of the Postbank agreement, concerns about October payments have grown, but SASSA reassured the public:

“We do not foresee any interruption of services. Beneficiaries using Postbank accounts will continue to transact as normal.”

The agency urged beneficiaries to report any suspicious deductions and confirmed its commitment to securing the grant system while preventing fraud and abuse.