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 regular debit card, but it works quite differently. Only 50€ in cash can be withdrawn monthly, and transfers are only possible to a very limited extent. These restrictions are massively hindering 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 lunch at school - cash is enormously important in Germany and the restriction of 50€ per person is an unnecessary burden on life and pure discrimination. In addition, not all stores accept the payment card as a means of payment. Also, transfers are indispensable in all areas of life. Membership fees for a club, the Germany ticket, the electricity provider - to be able to participate in society, we need the ability to make transfers, but with the payment card, this is - if at all - only possible after explicit approval and thus creates enormous barriers to integration instead of breaking them down. Constant technical errors, data protection issues, or illegal fees are just a few of the many problems associated with the payment card, not to mention the enormous additional effort for administrations.

Why was the payment card introduced?

The introduction of the payment card was decided by the federal government and the prime ministers of the states in November 2023. There were mainly two reasons given 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.”
   
   
   • 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 - with a decreasing trend.
2. "It should be less administrative effort for the municipalities, as the previous cash disbursements are eliminated and the money is transferred instead.”
   
   
   • Many municipalities reject the introduction of the payment card because it represents an additional effort for the municipalities.
   • Manuela Skotnik from the Department of Work and Social Affairs in Mannheim says: “The effort is enormous. In our estimation, it will remain higher over time than before.”
   • It is estimated that the payment card will cost an additional 68 million € in administrative effort annually.

How will the payment card develop prospectively?

The introduction of the payment card is not only a racist instrument that is supposed to hinder the integration of people who have fled poverty and war, but it must also be seen generally in the context of the ever-increasing right-conservative political sentiment. 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 an increasing stigmatization of people who are in need of help. Instead of offering assistance and support, further exclusion is pursued.