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 Only 50€ in cash can be withdrawn monthly and transfers are very limited.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

Why is the payment card problematic?

Whether at the flea market, on the weekly market, or for children's school snacks - cash is enormously important in Germany and the restriction of 50€ per person is an unnecessary complication of life and pure discrimination. In addition, not all stores accept the payment card as a means of payment. Transfers are also indispensable in all areas of life. Membership fees in a club, the Deutschlandticket, the electricity provider - to participate in social life, we need the possibility of making transfers, but with the payment card, this is - if at all - only possible after explicit approval, thus creating enormous integration hurdles instead of removing 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 an enormous administrative burden.

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 for the introduction, 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 incorrect, as shown by a recent study by the German Institute for Economic Research, based on representative household surveys of the Socio-Economic Panel (SOEP). Only seven percent of refugees send money abroad - the trend is declining.
2. "There should be less administrative burden for the municipalities because the previous cash payments are replaced by transfers."
   
   
   • Many municipalities reject the introduction of the payment card because it represents an increased workload 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 also remain higher in the long term than before."
   • It is estimated that the payment card will cost an additional 68 million € annually in administrative expenses.

How will the payment card develop prospectively?

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 must also be seen in the context of the ever-increasing right-conservative political climate. In Hamburg, the payment card is now to be extended to other social benefit recipients. It can be assumed that this system will continue to spread. We see an increasing stigmatization of people in need. Instead of offering help and support, further exclusion is practiced.