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 Only 50€ cash can be withdrawn monthly, and transfers are only very limitedly possible. These restrictions massively hinder participation in social life and successful integration.

Why is the payment card problematic?

Whether at the flea market, at the weekly market, or for the children's school snacks - cash is enormously important in Germany, and the restriction of 50€ per person is an unnecessary impediment to life and pure discrimination. Moreover, not all stores accept the payment card as a means of payment. Also, transfers are indispensable in all areas of life. The membership fee in a club, the Germany ticket, the electricity provider - to be able to participate in social life, we need the ability to make transfers, but with the payment card, this is - if at all - only possible after explicit approval, thereby creating enormous integration barriers instead of removing them. Constant technical errors, data protection issues, or unlawful fees are just a few of the many problems with the payment card, not to mention the enormous additional work for administrations.

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 the introduction, both of which are untenable.

1. “The reduced cash availability for asylum seekers is supposed to prevent them from sending money to their home countries.”
   
   
   • However, this assumption is false, 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 decreasing trend.
2. "It is supposed to be less administrative effort for the municipalities because the previous cash disbursements are eliminated, and the money is transferred instead.”
   
   
   • Very many municipalities reject the introduction of the payment card because it represents an additional workload for the municipalities.
   • Manuela Skotnik from the Department of Labor and Social Affairs in Mannheim says: “The effort is enormous. According to our assessment, it will also remain higher in the long run than before.”
   • It is estimated that the payment card will annually cost 68 million euros in additional administrative expenses.

How will the payment card evolve in perspective?

The introduction of the payment card is not only a racist instrument that aims to hinder the integration of people fleeing poverty and war in Germany, but it must also be viewed in the context of the ever-increasing right-conservative political mood. In Hamburg, the payment card is now to be extended to other social assistance 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 conducted.