In Greiz, Germany, the small town in the eastern region has introduced a controversial prepaid cards debit system for allocating benefits to asylum seekers instead of cash, aiming to prevent them from sending money abroad or falling victim to human traffickers.
Under the new scheme, asylum seekers receive the bulk of their €496 monthly benefits via prepaid cards, specifically a prepaid Mastercard that can only be used at stores within Greiz. About €100 is paid out in cash for additional expenses. Over 200 of Greiz’s 730 asylum seekers have transitioned, with more to follow.
Proponents like local administrator Martina Schweinsburg argue the cards have eased tensions and budgeting. However, some stores don’t accept cards, and asylum seekers say restricted mobility and inability to remit funds home have caused difficulties.
The card initiative forms part of a broader national effort to discourage immigration by implementing stricter benefit controls. Hamburg and Bavaria have introduced similar schemes, with other states planning rollouts. Opponents criticize these initiatives for infringing on rights and freedom.
While recognizing flaws, some officials and advocates believe the system has merits if expanded. Councilor Holger Steiniger supports the goals but wants permitting card use anywhere credit cards are accepted to improve access and mobility.
Peter Lückmann, of the refugee organization Aufandhalt, argues that asylum seekers avoid publicly critiquing the system to evade backlash. He asserts that allowances should consider realities such as families reliant on remittances.
The prepaid card policy reveals divides on immigration and integration. It aims to ease local tensions but risks further isolating vulnerable groups. Crafting solutions balancing compassion and pragmatism remains a complex challenge.