What is the payment card?

Refugees who fall under the 'Asylum Seekers Benefits Act' receive the money they are entitled to via the payment card instead of cash or into an account. The payment card looks like a normal debit card but works very differently. Only 50€ in cash can be withdrawn monthly, and transfers are only very limited possible. These restrictions massively hinder participation in society and successful integration.

Why is the payment card problematic?

Whether at the flea market, the weekly market, or for children's lunch money at school - cash is extremely important in Germany, and the restriction of 50€ per person is an unnecessary burden on life and pure discrimination. Furthermore, not all shops accept the payment card as a means of payment. Transfers are also indispensable in all areas of life. Club membership fees, the Deutschlandticket, the electricity provider - to participate in social life, we need the ability to make transfers, but with the payment card, this is - if at all - only possible with explicit approval, thus creating enormous integration hurdles rather than dismantling them. Constant technical errors, data protection issues, or illegal fees are just a few of the many problems with the payment card, not to mention the enormous additional burden on administrations.

Why was the payment card introduced?

The introduction of the payment card was decided by the federal government and state premiers in November 2023. The introduction was mainly justified by two reasons, both of which are untenable.

1. “By reducing the cash availability of asylum seekers, it should be prevented that they send money to their home countries.”
   
   
   • However, this assumption is wrong, as a recent study by the German Institute for Economic Research, based on representative household surveys of the Socio-Economic Panel (SOEP), shows. Only seven percent of refugees send money abroad – and the trend is declining.
2. "There should be less administrative burden for the municipalities because the previous cash payments are eliminated and the money is instead transferred."
   
   
   • Many municipalities reject the introduction of the payment card because it represents an additional burden for the municipalities.
   • Manuela Skotnik from the Department of Labor and Social Affairs in Mannheim says: “The effort is enormous. In our assessment, it will remain higher in the long run than before.”
   • It is estimated that the payment card will cost an additional 68 million euros annually in administrative burden.

How will the payment card develop prospectively?

The introduction of the payment card is not only a racist tool intended to hinder the integration of people who fled poverty and war in Germany, but it must also be seen generally in the context of the increasingly right-conservative political climate. In Hamburg, the payment card is now also to be extended to other social benefit recipients. It can be assumed that this system will continue to spread. We see here an increasing stigmatization of people in need. Instead of offering help and support, further exclusion is being practiced.