BIG price HIKE coming for critical Home Affairs verification checks

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Real-time Home Affairs verification technology has been available for more than a decade now. Essentially, what it is, is any third-party company or private individual can access the National Population Registry (NPR).

As such, the service allows registered users – mostly banks and financial service providers – to confirm biographical data of their clients. Of course, such Home Affairs verification doesn’t come for free. And since its launch back in 2013 the cost of such a service was a mere 15c per enquiry. But that’s all about to change …

HOME AFFAIRS VERIFICATION

Minister Schreiber says the ‘staggeringly underfunded’ system was leading to persistent system offline failures. Image: File

From next week, Tuesday 1 July 2025, the cost of Home Affairs verification is going to increase by 666%, reports BusinessTech. According to reports, from next month, a single real-time Home Affairs verification check will cost R10 per enquiry.

As this directly affects banks and financial service providers, experts are concerned the additional cost will be transferred to the public through increased bank fees. According to Department of Home Affairs Minister Leon Schreiber: “The pervious 15c rate was staggeringly and completely unsustainable. Moreover, it was well below market-related prices charged for comparable services.”

EXTREME UNDER-PRICING

Progress towards a fully digital system at Home Affairs continues unabated. Image: File

However, to compensate for the increase, the system will allow for other types of verifications. For example, R1 per verification for bulk enquires can be made during off-peak periods, confirmed the department. Initially, a price change was gazetted to take effect from 1 April. However, this was subsequently withdrawn and republished.

Furthermore, the department explained: “Extreme underpricing led to failure rates in excess of 50%, which contributed to system-offline failures. Plus, the demands on Home Affairs verification technology – through the likes of SASSA grants – now far outstrip the capacity it was originally designed for.” Importantly, there will continue to be no charge for this service by other government departments like SASSA.

REAL-TIME DATA

Will banks have no other option to up their fees, or will ID security verification become more lacklustre as a result? Image: File

Previously, at 15c per enquiry, even successful verifications would often take hours. This directly undermined the efficacy of the Home Affairs verification service. “However, from 1 July 2025, it will perform in real-time and the failure rate is guaranteed below 1%. Regarding the sharp increase in costs, the new fees are appropriate for the service provided, and not unreasonable when viewed against the organisations utilising the service,” concluded the department.