Germany’s Payment Card Rollout for Asylum Seekers Remains Incomplete

Germany’s payment card system for asylum seekers has been a major policy shift, aiming to change how benefits are delivered and managed. As of July 2025, the rollout remains uneven, with legal, administrative, and practical issues affecting both asylum seekers and the authorities responsible for supporting them. Below is a detailed update on what has changed, who is affected, the timeline, required actions, and what these developments mean for pending and future applications.

Summary of What Changed

Germany 🇩🇪 introduced a new payment card system for asylum seekers, known as the Bezahlkarte, to replace most cash-based benefit payments. The goal was to make benefit distribution easier, reduce the risk of money being sent abroad or to traffickers, and cut down on paperwork for local authorities. The rollout began in January 2025 across 14 federal states, but as of July 2025, the system is not yet available everywhere. Some states, like Bavaria, finished early with their own systems, while others are still struggling to get the cards into use.

A major legal setback occurred in July 2024, when the Hamburg Social Court ruled that the payment card, as used in Hamburg, was unlawful because it limited asylum seekers’ access to cash. The court said this violated their dignity and basic rights under German law. Despite this, the cards are still in use in Hamburg while the authorities review the ruling and consider appeals.

Who Is Affected

• Asylum seekers in Germany 🇩🇪 are the main group affected. This includes those already in the country and new arrivals, especially from April 2025, when Ukrainian refugees will also be included in The payment card system.
• Local authorities and social welfare offices must manage the new system, handle exceptions, and respond to legal challenges.
• Civil society organizations and legal aid groups are involved in supporting asylum seekers who face problems with the card.
• Federal and state governments are responsible for policy decisions, system design, and responding to court rulings.

Effective Dates and Timeline

• March 1, 2024: Federal Cabinet approved amendments to the Asylum Seekers’ Benefits Act, including the payment card.
• June 2024: Bavaria completed its own payment card system.
• January 2025: Coordinated rollout began in 14 federal states and in Mecklenburg-Western-Pomerania.
• April 2025: Newly arrived Ukrainian refugees became subject to the payment card and reduced benefit rates.
• July 2024: Hamburg Social Court ruled the card unlawful in Hamburg due to cash restrictions.
• July 2025: Rollout remains incomplete, with many municipalities still not offering the card.

Required Actions for Affected Groups

• Asylum seekers:
  • If you receive benefits, you may be issued a payment card instead of cash.
  • If you face problems using the card (such as not being able to pay for something you need, or if you need more cash than the card allows), you should contact your local social welfare office.
  • If your request for more cash is denied, you can appeal the decision. Legal aid organizations like Pro Asyl and the Gesellschaft für Freiheitsrechte can help.
• Local authorities:
  • Continue to issue payment cards where required, but be prepared to handle exceptions and appeals, especially regarding cash withdrawal limits.
  • Monitor legal developments and be ready to adjust procedures if higher courts uphold the Hamburg ruling.
• Employers and service providers:
  • If you accept payment cards, ensure your systems are compatible.
  • Be aware that not all asylum seekers will have access to cash, which may affect their ability to pay for certain goods or services.

Key Features of the Payment Card System

• How the card works:
  • The payment card is similar to a debit card. It can be used at most shops, supermarkets, and restaurants in Germany 🇩🇪 that accept card payments.
  • The card cannot be used for money transfers, either within Germany 🇩🇪 or to other countries.
  • Cash withdrawals are usually limited to €50 per month.
  • The monthly benefit amount is usually between €400 and €500, but this is being reduced in 2025. For example, single adults will get €441 per month.
  • The card is not accepted everywhere, and some goods or services (like certain public transport or second-hand markets) may require cash.
• Restrictions and criticisms:
  • The cash withdrawal cap is one of the most controversial features. Many say it makes life harder for asylum seekers, as some essential items can only be bought with cash.
  • The card’s limited acceptance means some people cannot buy what they need, especially in rural areas or at small shops.
  • Civil society groups argue that the card system is unfair and treats asylum seekers differently from others who receive social benefits.

Legal and Political Controversy

• Court decisions:
  • The Hamburg Social Court ruled in July 2024 that the payment card, as used in Hamburg, was unlawful because it restricted cash access and violated asylum seekers’ rights.
  • Social courts in other cities, like Nuremberg, have also questioned blanket cash withdrawal limits, saying each case should be looked at individually.
  • However, some appeals courts in Hamburg and Munich have said the card is legal, so the situation is still unclear. More court cases are expected.
• Government response:
  • Federal and state officials say the card is needed to make benefit payments easier and to stop money from being sent to traffickers or abroad.
  • They admit the system is not perfect and say they will keep reviewing it, especially if courts order changes.
• Civil society criticism:
  • Human rights groups say the card system is discriminatory and makes life harder for people who are already vulnerable.
  • They also point out that the need for individual exceptions and appeals creates more work for local authorities and delays help for asylum seekers.

Practical Implications for Asylum Seekers

• Everyday challenges:
  • Many asylum seekers have trouble using the card because it is not accepted everywhere. This can make it hard to buy food, clothes, or pay for transport.
  • The €50 cash limit means some cannot pay for things that require cash, like certain medicines, bus tickets, or items at local markets.
  • If someone needs more cash for a special reason (for example, to pay a deposit or buy something only available for cash), they must apply for an exception. This can take time and is not always approved.
• Administrative burden:
  • Local authorities must handle more paperwork, as they need to review requests for extra cash and deal with appeals.
  • This can slow down benefit payments and make it harder for asylum seekers to get the help they need quickly.
• Uncertain future:
  • Because of the court ruling in Hamburg and ongoing legal challenges elsewhere, it is not clear if the payment card system will stay as it is.
  • If higher courts agree with the Hamburg decision, some areas may have to go back to cash payments or change the card’s rules.

Implications for Pending and Future Applications

• Pending applications:
  • If you are waiting for a decision on your asylum application, you may still receive benefits through the payment card, depending on where you live.
  • If you have special needs or face problems with the card, you can ask for an exception or appeal a decision.
  • Legal aid groups can help you understand your rights and support you in making appeals.
• Future applicants:
  • From April 2025, new Ukrainian refugees will also be included in the payment card system and will receive the same, lower benefit rates as other asylum seekers.
  • The rules may change again, depending on future court decisions or changes in the law.

Regional Differences and Rollout Status

The payment card system is not the same everywhere in Germany 🇩🇪. Here’s a summary of the current status by region:

• Bavaria: Finished its own payment card system in June 2024. Not part of the 14-state coordinated rollout.
• Mecklenburg-Western-Pomerania: Started its own system in January 2025.
• 14 Coordinating States: Began rollout in January 2025, but not all towns and cities are covered yet.
• Hamburg: Payment card is in use but has been ruled unlawful by the local social court. The final outcome depends on appeals.
• Other states (Thuringia, Brandenburg, Saxony, Rhineland-Palatinate): Have their own systems or mixed approaches. Legal challenges are ongoing.

What Should Asylum Seekers Do Now?

• Check with your local social welfare office to see if you will receive a payment card or cash.
• If you have problems with the card (for example, if you cannot buy what you need or need more cash), ask for an exception. If your request is denied, you have the right to appeal.
• Seek help from legal aid organizations like Pro Asyl or the Gesellschaft für Freiheitsrechte if you need support with appeals or understanding your rights.
• Stay informed about changes by checking official government updates. The Federal Government’s migration and integration portal provides the latest information and contact details. You can visit the Federal Government’s migration and integration topic page for updates.

Key Takeaways and Next Steps

• The payment card system for asylum seekers in Germany 🇩🇪 is not yet available everywhere and faces many challenges.
• Legal rulings, especially in Hamburg, have raised questions about whether the system respects asylum seekers’ rights.
• The federal and state governments are still working to fix problems and respond to criticism, but the future of the payment card is uncertain.
• Asylum seekers should know their rights, ask for help if needed, and keep up to date with changes.
• Local authorities and service providers should be ready to adjust their procedures as the legal situation develops.

For More Information

• Official updates and contact information: Federal Government’s migration and integration topic page
• Legal aid and advocacy: Pro Asyl and Gesellschaft für Freiheitsrechte offer support for asylum seekers facing problems with the payment card system.

As reported by VisaVerge.com, the payment card system’s future will depend on ongoing court cases, possible changes in the law, and continued feedback from those affected. For now, both asylum seekers and those who support them should stay alert to new developments and be prepared to act if the rules change.

Conclusion

Germany’s payment card for asylum seekers was meant to make benefit payments easier and safer, but its rollout has been slow and uneven. Legal challenges, especially about the right to cash, have put the system’s future in doubt. Asylum seekers, local authorities, and service providers all need to pay close attention to new court decisions and government updates. If you are affected by the payment card system, know your rights, seek help if needed, and keep checking for the latest information from official sources and trusted organizations.

Learn Today

Bezahlkarte → A payment card for asylum seekers replacing cash benefits, limiting cash access and simplifying payments.
Asylum Seekers’ Benefits Act → German law governing social benefits provided to asylum seekers including payment methods and amounts.
Social Court → German court addressing disputes involving social welfare and asylum seeker rights at regional levels.
Cash Withdrawal Limit → Monthly maximum cash amount asylum seekers can withdraw using the payment card, generally capped at €50.
Legal Aid Organizations → Groups like Pro Asyl assisting asylum seekers with legal advice and support in appeals and rights.

This Article in a Nutshell

Germany’s new payment card system for asylum seekers aims to simplify benefits but faces uneven rollout, legal challenges, and restrictions on cash withdrawals, impacting daily life and administration, while future changes depend on court rulings and government adjustments.
— By VisaVerge.com