Standards agreement – payment card available for asylum seekers throughout Germany

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Now it has been resolved: a payment card for asylum seekers is being introduced nationwide in Germany. In the future, asylum seekers should receive part of the state benefits as credits and no longer as cash. The card is also intended to prevent refugees from transferring money to family or friends abroad. The implementation should be completed by the summer.

Fourteen of the sixteen German states agreed on Wednesday on common standards for a procurement process. Bavaria and Mecklenburg-Vorpommern also want to introduce the card, but are going their own way. A heated discussion has already arisen in Austria about a model similar to the one in Germany.

Moneyless shopping
Refugees in Germany must be able to make cashless purchases – just like with a debit card. Individual countries may also restrict use to a specific region. Cash withdrawals are only possible up to a certain monthly amount. How much this so-called ‘pocket money’ should be is still being discussed. The payment card only works in Germany and not abroad. In addition, overdrafts, card-to-card transfers and other transfers at home and abroad are excluded.

“Important step”
“In my opinion, this is a very important step to reduce incentives for illegal migration to Germany,” Hessian Prime Minister and Chairman of the Prime Minister’s Conference Boris Rhein (CDU) said on Wednesday about foreign transfers. “A lot of money was sent home at that time. We don’t want that,” the FDP said.

Each federal state determines the amount itself
Each country determines the amount of the cash amount and other additional features, Rhein explains. According to current case law, part of the money must be paid to each benefit recipient in cash. “With this ‘pocket money’ we are probably talking about an amount around 100 to 150 euros,” says Rhein. And added: ‘There’s no way around it, it has to be available in cash.’ Everything else must be determined in the countries.

Payment card has no account link
The payment card has no account link and can in principle be used in all industries, but not abroad. “However, use may be limited regionally by individual countries and sectors may be excluded,” Rhein explains. He cited the gambling industry as an example.

Administrative costs are reduced
Because cash payments to asylum seekers with a payment card would be largely unnecessary, the administrative burden in the municipalities would be reduced, said the co-chairman of the Prime Minister’s Conference, Lower Saxony Prime Minister Stephan Weil (SPD). According to a report in the Handelsblatt, the chairman of the German District Council, Reinhard Sager, called for: “The comprehensive introduction of payment cards for asylum seekers is the right thing to do and should be implemented as soon as possible.”

The first asylum seekers leave
Payment card models have already been introduced on a pilot basis in some districts. After the switch to the new system, 35 of the 135 asylum seekers in the Greiz district of Thuringia have already left the country. District administrator Schweinsburg (CDU) said on ZDF that this would separate the wheat from the chaff.

Asylum seekers currently receive standard social assistance benefits and special support, for example in the event of illness or pregnancy. According to the Federal Statistical Office, approximately 482,300 people had received standard benefits under the Asylum Seeker Benefits Act by the end of 2022; figures for 2023 are not yet available.

Source: Krone

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