Lübeck to roll out prepaid cards for asylum seekers by April 2026
Lübeck's Mandatory Prepaid Card System to Launch in April 2026
The German Bundestag approved the introduction of a prepaid card system for asylum seekers and recipients of asylum benefits in April 2024. In Schleswig-Holstein, an implementation decree issued in November 2025 sets out the requirements, obliging municipalities to roll out the cards by April 30, 2026.
Local authorities have no discretion in the matter. The Hanseatic City of Lübeck must comply, though it views the transition with skepticism. Internally, officials anticipate increased bureaucracy, additional administrative burdens, and rising costs—factors that could lead to longer processing times. In precarious situations, delays may trigger more complaints and formal objections.
The city also foresees everyday challenges. The card risks making recipients' status visibly distinct, potentially fostering feelings of shame or exclusion. Payment approval delays—for transfers or transactions outside Schleswig-Holstein—could add further strain. Special provisions might heighten perceptions of being treated differently, undermining social cohesion and participation.
According to city figures, around 800 people in Lübeck are currently affected. Until now, most eligible recipients have received benefits via direct deposit into personal accounts; a small number receive cash because they lack bank accounts. Standard monthly payments include €460 for single adults, with lower amounts for couples and children. Under the new system, adult beneficiaries will receive Visa debit cards. Transfers and direct debits will require prior application and approval, though recurring payments may be streamlined via a "whitelist" system.
The card's use is restricted to Schleswig-Holstein; transactions in other federal states will require advance authorization. Cash withdrawals are capped at €50, and purchases are limited to vendors accepting Visa debit. The rollout will begin in April 2026, starting with those without bank accounts and new arrivals issued cards. Meanwhile, the city is developing a communication strategy to address the changes.
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