Germany’s Hamburg Introduces €185 Payment Card for Refugees

KEY TAKEAWAYS

• Hamburg has become the first German state to issue payment cards for refugees.
• All adults holding the card will receive a credit of €185 each month.
• The reason behind the introduction of this card is to prevent refugees from sending benefits money to their home countries.

Hamburg has started issuing Visa cash cards for refugees in the country, becoming the first German state to do so.

Announcing the news, the German authorities explained that Hamburg will initially issue these cards to new arrivals in reception facilities.

The same have stressed that this is a pilot project, and if proven to be successful, such a card will be introduced across the whole country.

As Deutsche Welle clarifies, all newly arrived refugees in Hamburg are entitled to this special card known as SocialCard.

Since refugees will be issued this card, they will no longer have to make a visit to a cash point or public authority, thus making the process less burdensome and, at the same time, more efficient for them.

The credit card will only be issued to adults, and everyone holding it will receive a credit of €185 each month. This money can be used to pay for items that are needed in everyday life.

As for children of refugees, the German authorities have stressed that their benefits will be credited to the cards of their parents.

By introducing such a card that includes a certain amount of credit for refugees in the country, Germany wants to make sure that this group of people is not able to transfer their benefits to relatives in their home countries.

With this move, Germany also wants to lessen the burden on authorities responsible for distributing the benefits to refugees.

The issue of transferring the benefits was raised by German politicians, with them saying that the country needs to put an end to such a practice.

Following such calls, the state premiers decided back in November to introduce this card for refugees. The 16 federal states have agreed on the matter, and they are soon to introduce the cards with their own standards.

Refugees who get issued this card will be able to use it in stores as well as at service providers that already accept card payments. Additionally, the SocialCard can also be used through a phone application.

Those who hold the SocialCard will be able to withdraw up to €50 per month for themselves and €10 for each child.

While the card permits the holders to withdraw money and buy different products, it has been stressed that it does not allow online international payments.

The implementation of the card in the other parts of the country is expected to be made before the ending of the first half of the year.