Refugee Payment Card: Launch Phase Started
Hamburg has started rolling out a new prepaid payment card for refugees. The scheme follows a city council decision in late March, which passed with strong backing. Officials say the first cards have now been issued to asylum seekers.
The payment card operates as a prepaid Visa debit card. Each month, it is loaded with the amount refugees are entitled to under the Asylum Seekers’ Benefits Act. Users can spend the funds in many shops, withdraw up to €50 in cash, and arrange bank transfers or direct debits.
The card comes with strict limits. It cannot be used outside Germany, blocks overseas transfers, and prevents payments linked to gambling or overdrafts. These restrictions aim to stop misuse, such as funding smugglers, while simplifying administrative work.
Hamburg’s mayor, Thomas Terhorst, has backed the system as a way to improve support and reduce discrimination against refugees. However, those earning income from jobs or vocational training will not receive the card. The policy also fits wider federal and state efforts to cut incentives for irregular migration to Germany.
The new payment card is now active for eligible asylum seekers in Hamburg. It replaces some cash benefits with a controlled, digital system. Authorities will monitor its impact on both administrative efficiency and refugee welfare.
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