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 functions quite differently. Only €50 in cash can be withdrawn monthly, and transfers are very limited. These restrictions are massively hindering participation in social life and successful integration.

Why is the payment card problematic?

Whether at flea markets, farmers' markets, or for the children's lunch money at school - cash is extremely important in Germany, and the restriction of €50 per person is an unnecessary hardship 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. Membership in a club, the 'Deutschlandticket', the electricity provider - to participate in social life, we need the ability to make transfers, yet with the payment card, this is - if at all - only possible after explicit approval and thus builds enormous integration barriers instead of reducing 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 administrative efforts.

Why was the payment card introduced?

The introduction of the payment card was decided by the federal government and the state premiers in November 2023. There were mainly two reasons given for its introduction, neither of which hold up.

1. “By reducing the cash availability of asylum seekers, it is intended to prevent them from sending money to their home countries.”
   
   
   • However, this assumption is incorrect, 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 - with a declining tendency.
2. "There should be less administrative effort for the municipalities because the previous cash payouts are eliminated and the money is transferred instead.”
   
   
   • Many municipalities reject the introduction of the payment card because it represents additional efforts for the municipalities.
   • Manuela Skotnik from the Department of Labor and Social Affairs in Mannheim says: “The effort is enormous. In our estimation, it will remain higher in the long run than before.”
   • The payment card is estimated to cost €68 million annually in additional administrative effort.

How will the payment card develop in perspective?

The introduction of the payment card is not only a racist instrument intended to hinder the integration of people who have fled poverty and war in Germany, but it must also be seen in the context of the ever-increasing right-conservative political climate. In Hamburg, the payment card is now also set to be extended to other social benefits recipients. It can be assumed that this system will continue to proliferate. We are witnessing increasing stigmatization of people in need. Instead of offering help and support, further exclusion is being pursued.