- WHAT IS THE NSFAS MASTERCARD?
- WHY WAS THE NSFAS MASTERCARD INTRODUCED?
- HOW DID THE NSFAS MASTERCARD WORK?
- WHO PROVIDED THE NSFAS DIRECT PAYMENT SERVICE?
- IS THE NSFAS MASTERCARD STILL USED?
- WHAT SHOULD NSFAS STUDENTS DO NOW?
- HOW DO I RECEIVE NSFAS ALLOWANCES?
- DOES NSFAS STILL USE DIRECT PAYMENTS?
- NSFAS MASTERCARD VS A PERSONAL BANK ACCOUNT
- HOW DO I AVOID NSFAS PAYMENT SCAMS?
WHAT IS THE NSFAS MASTERCARD?
The NSFAS Mastercard was part of the direct payment system introduced by the National Student Financial Aid Scheme (NSFAS) to pay student allowances directly to funded students.
The system included virtual and physical cards connected to student accounts. NSFAS introduced the direct payment model as part of its effort to change how allowances were distributed to students at public universities and TVET colleges.
The Mastercard should therefore be understood as part of the history of NSFAS direct allowance payments rather than as a new NSFAS funding application or bursary.
WHY WAS THE NSFAS MASTERCARD INTRODUCED?
NSFAS introduced direct payment arrangements to change how student allowances were disbursed and to give students more direct access to their allowance payments.
During the rollout, NSFAS explained that students would receive allowances through a direct payment system and that virtual or physical cards could be used to transact. The system was also intended to provide students with access to banking-related services.
The direct-payment model formed part of a broader change in the way NSFAS handled student allowances and was implemented through appointed service providers.
HOW DID THE NSFAS MASTERCARD WORK?
Under the direct payment system, an eligible NSFAS beneficiary could receive allowance payments through a student account associated with the payment service. A virtual or physical card could then be used to access or spend the funds.
The original system was designed to provide students with access to their allowances for expenses such as food, personal care and transport, depending on the allowances allocated to the student.
NSFAS also described the direct payment system as allowing students to transact electronically and access their funds through banking-related services. These features formed part of the original rollout and should not be confused with the current NSFAS allowance payment arrangements.
WHO PROVIDED THE NSFAS DIRECT PAYMENT SERVICE?
NSFAS appointed several service providers for the direct payment of student allowances under its direct-payment procurement process.
NSFAS procurement records list Coinvest Africa, Tenet Technology, Ezaga Holdings and Norraco Corporation as appointed service providers under tender SCMN022/2021 for the provision of direct payments of allowances to NSFAS students.
This is important because students may still find older articles and websites referring to these companies, NSFAS cards or NSFAS bank accounts. Those references relate to the direct-payment system and its rollout and should not automatically be treated as instructions for current students.
IS THE NSFAS MASTERCARD STILL USED?
The original NSFAS Mastercard/direct-payment arrangement should not be treated as the current universal payment method for NSFAS students.
NSFAS currently warns students: “Please do not use the previous NSFAS Direct Payment Black Card.” NSFAS has also stated that it has introduced a different payment mechanism through its internal banking arrangements.
This means students should not follow old online instructions telling them to obtain, activate or use a previous NSFAS Direct Payment Black Card simply because they are NSFAS beneficiaries.
Students should instead follow the latest instructions published by NSFAS for their academic year, institution and type of funding.
WHAT SHOULD NSFAS STUDENTS DO NOW?
If you are currently funded by NSFAS, do not rely on an old NSFAS Mastercard article to determine how your allowance should be paid.
- Check your myNSFAS account for current payment and funding information.
- Follow the latest allowance payment instructions issued by NSFAS.
- Do not use a previous NSFAS Direct Payment Black Card.
- Do not give your PIN, password or banking credentials to another person.
- Do not pay anyone who claims they can activate your NSFAS allowance or release your funding.
- Use the official NSFAS website and myNSFAS platform for application and payment instructions.
NSFAS currently provides application, document-upload and status-tracking services through myNSFAS.
HOW DO I RECEIVE NSFAS ALLOWANCES?
How an NSFAS-funded student receives an allowance depends on the applicable NSFAS payment arrangements, the student’s institution and the type of allowance involved.
For TVET college students, NSFAS currently states that funded students can receive allowances through a bank account of their choice. NSFAS instructs TVET beneficiaries to submit their personal banking details so that allowances can be paid directly into their bank accounts.
Students who need to provide or update their banking information should follow the current NSFAS process rather than instructions from older Mastercard articles. You can read our guide on how to submit bank details to NSFAS.
DOES NSFAS STILL USE DIRECT PAYMENTS?
NSFAS continues to operate allowance payment processes, but the payment arrangements have changed since the original Mastercard-based direct-payment rollout.
NSFAS’s current guidance specifically tells students not to use the previous Direct Payment Black Card and explains that TVET-funded students can receive allowances through a bank account of their choice.
The important distinction is therefore between NSFAS paying allowances directly to students and the older Mastercard-based method used for some direct payments. Direct payment does not necessarily mean that a student must use an old NSFAS Mastercard.
NSFAS MASTERCARD VS A PERSONAL BANK ACCOUNT
The original NSFAS Mastercard system involved a payment account and card-based access to allowances. The current NSFAS approach includes bank-account-based payments for TVET beneficiaries, with students able to use a bank account of their choice.
| NSFAS Mastercard system | Current bank-account arrangement |
|---|---|
| Part of the earlier direct-payment rollout | Current NSFAS guidance for TVET beneficiaries |
| Used virtual or physical cards | Uses the student’s personal bank account |
| Associated with appointed direct-payment service providers | NSFAS instructs eligible TVET students to submit their banking details |
| Should not be treated as the current default payment instruction | Students should follow the latest NSFAS instructions |
HOW DO I AVOID NSFAS PAYMENT SCAMS?
Students should be particularly careful when searching for information about NSFAS cards, allowance payments and banking details because older payment systems are still discussed online.
- Only use the official NSFAS website and your myNSFAS account for funding and payment instructions.
- Never share your NSFAS login password, banking PIN or one-time passwords with another person.
- Do not pay someone to submit an NSFAS application on your behalf.
- Do not trust messages promising to release, increase or activate your NSFAS allowance for a fee.
- Check whether information relates to the current academic year before following instructions.
- If you are unsure about a payment instruction, verify it directly with NSFAS.
NSFAS maintains a zero-tolerance policy towards dishonesty, bribery, fraud and corruption and provides official channels for reporting suspected wrongdoing.