Payment cards for refugees: legal adjustments and broader regulations necessary

(de-news.net) – About one year after the German Bundestag approved the implementation of payment cards for refugees, municipalities have criticized the länder for unsatisfactory implementation. The approach varies significantly across states, with some decisions delegated to the municipalities – a practice deemed ineffective by André Berghegger, CEO of the German Association of Towns and Municipalities.

Berghegger emphasized the need for a nationwide rollout with standardized, transparent, and uncomplicated regulations to ensure efficient management by the municipalities. Acknowledging the payment card’s utility in guaranteeing refugees access to allocated benefits while preventing misuse, Berghegger urged the governments of the federal states to expedite a comprehensive implementation.

Meanwhile, around 50,000 cards were reported to be in daily use, according to Jörg Schwitalla, CEO of the financial service provider “Publk.” The company, leading a consortium responsible for implementing the cards in 14 federal states, had distributed approximately 200,000 cards. Most participating states, except Thuringia and Berlin, had commenced the rollout, while Bavaria and Mecklenburg-Western Pomerania opted out, with Bavaria introducing a card system on its own.

Schwitalla highlighted challenges in preventing misuse, such as exchange initiatives circumventing cash limits for asylum seekers. Addressing such issues would require legislative adjustments, he noted, as technical solutions were insufficient. Attempts to restrict purchases, such as alcohol, were deemed impractical due to operational limitations.

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