SASSA Gold Cards Will No Longer Be Valid After February

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JIMMY MOYAHA: This past weekend, I visited several shopping malls, including a Checkers store, where I encountered a situation at the information desk. Someone was trying to update their Sassa [South African Social Security Agency] card and had heard that Checkers could help with this. However, the staff at Checkers responded abruptly, saying, ‘Unfortunately, we cannot assist you as we are not clear on the procedures’.

Later, I found an article online stating that Sassa gold cards must be replaced by February 28th, and the last payments for these gold cards would occur in the week just passed — specifically, from February 4th to 6th, 2025.

This situation has caused significant confusion and anxiety, particularly for those relying on these cards for their social grants. I felt it was important to reach out to PostBank for clarification on this issue.

Now joining us is PostBank CEO Nikki Mbengashe, who will provide insight into the current situation. Nikki, good evening, and thank you for being here. There’s been a lot of uncertainty surrounding the transition to the new PostBank black cards. Initially, there was discussion about a phased rollout including select retailers.

However, a recent announcement states that everything needs to be finalized by February 28th, leaving many confused. What’s the latest update?

NIKKI MBENGASHE: Thank you for having me, and good evening to your listeners. Initially, we approached this project carefully, implementing a staggered rollout. This strategy enabled us to learn and make necessary enhancements before a nationwide rollout, which took place about six months ago.

We have been distributing the new cards for over five months now to facilitate a smooth transition.

The call for everyone to update their cards has been ongoing, and we have partnered with the same retailers.

As we receive more feedback, we are improving our communication. It’s important to note the deadline is definite — by February 28th, the yellow [gold] card will no longer function, and everyone must switch to the new black card to continue receiving their grants starting March 1st.

JIMMY MOYAHA: Nikki, can you elaborate on the reasons behind this change? We’ll revisit some of your points, but why is the transition from the gold card — or the ‘yellow card’ as it’s often called — to the black card taking place? What are the differences and reasons for this timing?

NIKKI MBENGASHE: There are mainly three reasons. First, like standard banking cards, they have an expiration date. The previous cards expired nearly two years ago; however, we secured a waiver from Visa to address some underlying system issues before issuing the new card.

The new card issuance comes with compliance milestones that needed to be fulfilled behind the scenes.

Some cards typically have expiration ranges of five to ten years, depending on associated risks.

This upgrade process enhances security and ensures compatibility with the latest ATM software advancements, reducing fraud risks compared to the outdated chip versions.

Additionally, we have been under a variation notice from the South African Reserve Bank, which mandated that we meet certain compliance requirements.

The issuance of the new card was one of these necessary conditions to comply and move away from the variation notice, making the deadline crucial — as we must reduce risk in our payment systems.

JIMMY MOYAHA: Nikki, concerning those expiration dates, I want to clarify what will happen after February 28th. If my gold card is not technically expired by that date, will I still encounter problems accessing my social grant? Many individuals are understandably anxious about when these changes will occur and how to obtain new cards.

NIKKI MBENGASHE: To clarify, the card will become nonfunctional regardless of its expiration date. This is a backend operational matter; it can’t extend beyond that.

So, if you attempt to use the card at an ATM, it may be retained by the machine, or the machine will identify it as invalid. Likewise, it won’t be accepted at retailers.

This means you won’t be able to access your funds with that card. However, we will provide options for those who haven’t transitioned by the deadline to ensure they still receive their grants. Nevertheless, using the new card will make accessing grants significantly easier.

We have set up over 200 service points across the country, collaborating with major retailers such as Checkers, Shoprite, Pick n Pay, Boxer, and Usave, where PostBank tellers can assist.

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Just present your ID document, and you can have your new card ready in approximately ten minutes.

JIMMY MOYAHA: That’s excellent to hear — it streamlines the process for accessing funds. In light of recent news regarding the Post Office requiring substantial government assistance, some may question whether PostBank can consistently manage the grants and payments.

Can we clarify the distinction from the Post Office? Were there any recent discussions about this? Has PostBank successfully established itself as an independent entity with its own balance sheet, separate from the Post Office?

NIKKI MBENGASHE: Yes, we are entirely independent. We possess our own governance structure, separate from the Post Office, with differing boards and CEOs. Although we still report to the same department, we function as distinct organizations.

This separation was formalized a year ago when the president signed the amendment bill, confirming our independent status with separate audits.

While the Post Office continues to act as a channel for some services similar to our agreements with Checkers or Shoprite, we have considerably reduced our reliance on them since last March.

In March, we ceased issuing grants through the Post Office due to decreasing branch numbers.

Moreover, witnessing older individuals queuing at Post Offices raised safety concerns, prompting us to strategically distance ourselves from that channel.

JIMMY MOYAHA: On the topic of safety, another concern among grant beneficiaries has been the security of their funds. Will individuals with the new PostBank card be considered PostBank customers, or will the setup be similar to the past, where they only managed disbursements without offering users a full banking experience?

How will this transition work starting March 1st?

NIKKI MBENGASHE: Anyone with a PostBank card is indeed a PostBank customer.

While we provide services on behalf of Sassa, the experience is akin to that of a regular banking account.

However, there are currently some limitations — like not being able to receive other funds or transactions outside of Sassa grants. We intend to have discussions with Sassa, as we believe this contradicts principles of financial inclusion.

But fundamentally, it’s a standard banking account.

JIMMY MOYAHA: This implies that funds should be secure there as PostBank seeks to enhance its banking solutions.

As we near the conclusion of this discussion, I want to remind everyone that PostBank’s USSD service has been updated: *120*218*3#.

You can find the nearest Pick n Pay and Shoprite locations. The list has expanded greatly, providing many options to sort your PostBank card before the deadline. Make sure to complete this process prior to the 28th.

As highlighted, failure to transition by the 28th may seriously hinder grant access.

Thank you, Nikki, for your time and valuable insights. That was PostBank CEO Nikki Mbengashe, sharing the latest developments regarding Sassa cards and upcoming changes.

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