1709350958 Migration What will change with the payment card for asylum

Migration: What will change with the payment card for asylum seekers?

Asylum seekers in Germany will, in future, be expected to receive their benefits via card. What are the consequences – and what are the criticisms of the project?

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PlayPause -00:00:00 0.5x 0.75x 1x 1.25x 1.5x 2x More about this audio offer The audio version of this article was artificially generated. We are constantly developing this offering and look forward to your feedback.Migration: Until now, asylum seekers in initial reception centers have mainly received benefits in kind.  With the introduction of the payment card, authorities must then reserve the money directly on the card's chip.

Until now, asylum seekers in initial reception centers have mainly received benefits in kind. With the introduction of the payment card, authorities must then reserve the money directly on the card's chip. © Bodo Schackow/​dpa

Instead of using cash, asylum seekers will be able to make their purchases using a card in the future. In accordance with the wishes of the Federal Government, this should now be enshrined in law. However, several aspects of the project are controversial. An overview of the most important questions and answers

All questions in summary:

What has the federal government decided now?

The payment card is based on a decision made by state premiers and Federal Chancellor Olaf Scholz on November 6 last year. It states that benefits for asylum seekers should, if possible, be processed using a “nationally standardized payment card” rather than cash. Among other things, the card is intended to prevent asylum seekers from transferring money to smugglers or to their family or friends abroad. This should also reduce the administrative burden on municipalities.

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A template has been developed for this by January 31st. But then there was an argument. The Greens argued that the nationwide introduction of the card would be possible without a corresponding federal law – also because a payment card has already been introduced in some places. Therefore, they did not want to support planned changes to the law, for example in the Asylum Seeker Benefits Act. The federal states insisted on clarifications in federal legislation. Also to create legal security in case of legal actions. The compromise that the traffic light government has now agreed to: The payment card is expressly mentioned as an option in the Asylum Seeker Benefits Act; the Bundestag must now decide on the change in the law.

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In which federal states should the payment card be introduced?

A payment card for asylum seekers will be available in all 16 federal states. 14 federal states have agreed on a joint procurement procedure for the introduction, which is expected to be completed by the summer. Hesse took the lead. Bavaria and Mecklenburg-Western Pomerania are following their own path in the acquisition process, but also intend to introduce such a card.

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What are the payment card regulations?

Instead of cash, refugees who are in the process of applying for asylum or who have tolerance status must make their purchases using a card. Cash payments and payment cards should be equally important options. Each adult member of a household entitled to benefits must receive their own payment card. The specific design of the payment card must be the responsibility of the states – they can decide whether to use it to replace or complement pecuniary and non-pecuniary benefits. The question of whether refugees can withdraw money from the card or not is also a state issue.

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Some details also need to be checked. This applies, for example, to asylum seekers who have been in Germany for a long time and who work, study or train and receive state benefits that correspond in type and amount to citizen benefits. The question is whether they should be deleted from the payment card. This was important for the Greens. They fear that the proper wording of the Asylum Seeker Benefits Act will create a gateway for new restrictions. This must now be clarified in the parliamentary process.

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So will asylum seekers no longer receive money?

Until now, asylum seekers in initial reception centers have mainly received benefits in kind. In addition, however, they receive an amount to cover personal needs. However, this differs in the federal states. Some rely mainly on cash benefits, others rely more heavily on benefits in kind.

Throughout 2024, authorities will then reserve the money directly on the card's chip – where it will be available to asylum seekers. In principle, you can still withdraw money from ATMs. The states themselves make specific regulations up to what value. A local limitation may also be possible: the states decide, for example, whether the payment card can only be used in certain municipalities or districts or whether it will be valid for the entire federal state. .

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What criticisms are there of the payment card?

The Greens fear that the payment card could be an obstacle to the integration of refugees. Green Party migration expert Julian Pahlke told news portal t-online: “I am concerned about the discriminatory effect of the payment card.” Furthermore, if people are denied the opportunity to “manage their money regularly”, they are likely to be pushed into the shadow economy.

The FDP, on the other hand, welcomes the agreement. Party leader Christian Lindner insists on a quick presentation. The card “will effectively reduce the attractiveness of the German social system,” he said on the Internet service X.

Migration experts and refugee protection organizations criticize the model. Pro Asyl views the payment card primarily as an instrument of discrimination. This means that refugees cannot participate in everyday life. In many situations, a bank transfer is essential, such as when concluding a mobile phone contract. Furthermore, the regional restriction would restrict the freedom of movement of individuals through the back door.

Bundestag member Maximilian Mörseburg from the CDU calls for such a payment card to also be introduced for recipients of citizens' benefits.

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Do you have any experience with payment cards in other countries?

In Thuringia, model tests already took place in the districts of Greiz and Eichsfeld last December. Greiz district administrator Martina Schweinsburg (CDU) took stock in January. Thanks to the payment card, there is now less administrative work and the payment method is highly accepted by the population and retailers, Schweinsburg said. In Greiz, around 30 of the 750 asylum seekers initially participated in the pilot process. With the card they could only make purchases in nearby stores. Unable to withdraw or transfer money.

The Thuringian Refugee Council criticized the new payment methods and reported significant restrictions for asylum seekers: payment would have worked in supermarkets, but there were problems in the hairdresser, in smaller shops or when purchasing a ticket to Germany. Payment cards have been issued in Hamburg since Thursday.

These payment cards are also used for refugees abroad. In France, asylum seekers can use their card to make purchases in stores, but cannot withdraw cash. Such payment card systems also exist in Great Britain and Greece.

With material from the DPA and AFP news agencies.

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Instead of using cash, asylum seekers will be able to make their purchases using a card in the future. In accordance with the wishes of the Federal Government, this should now be enshrined in law. However, several aspects of the project are controversial. An overview of the most important questions and answers

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