The payment card for asylum seekers is intended to ensure that state benefits are not transferred abroad – and is introduced nationwide. In Hamburg we are already further along.
Hamburg was the first federal state to start issuing payment cards to asylum seekers. Since Thursday, newly arriving refugees in the initial reception centers have been receiving the prepaid card, which is entitled to benefits under the Asylum Seekers Benefits Act, said a spokesman for the social authority.
Each adult receives a monthly credit of 185 euros, which can be used to buy and pay for everyday items. Child benefits would also be credited to a parent’s card. Pilot projects are already underway at the local level in several federal states.
According to the information, cash withdrawals are also possible at ATMs with the so-called “SocialCard” – but only up to a maximum amount of 50 euros per month plus 10 euros for each child.
Not valid abroad or in online trading
“It can be used both as a card and via a corresponding app on the smartphone in all shops and service providers that accept card payments,” the authority said. However, it is not possible to use the card abroad or for online trading.
The card offers advantages for both benefit recipients and the administration: “Beneficiary recipients no longer have to come to an authority or cash office, which saves them travel and time. At the same time, this relieves the burden on the district paying offices,” it said. It is therefore planned to gradually issue the card to other benefit recipients.
At the end of January, 14 of 16 federal states – including Hamburg – agreed on a joint procurement process to introduce a payment card for asylum seekers, which should be completed by the summer. The experiences from the Hamburg pilot project should be incorporated into the planning.
Among other things, the card is intended to prevent refugees from transferring money to smugglers or to their family or friends abroad.
Source: Stern
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