A left-wing advocacy group in Hamburg is openly teaching asylum seekers how to bypass the recently introduced payment card system, sparking political controversy and exposing a loophole in the system meant to control benefits distribution.
The Hamburg Refugee Council, which opposes the card, has launched a website explaining how asylum seekers can convert their card credit into cash through a voucher exchange system.
The payment card, introduced in November 2023 after an agreement between Chancellor Olaf Scholz and the state prime ministers, was designed to reduce the administrative burden of handling cash benefits for asylum seekers and prevent misuse. The goal was to ensure that aid would be used for essential needs, such as food and hygiene products, rather than cash being spent elsewhere or sent home amid concerns the cash is being used to buy drugs, prostitutes, and other illicit purposes.
Hamburg was the first federal state to implement the card, issuing around 2,500 of them in the first half of 2024.
However, the Hamburg Refugee Council has actively opposed the payment card, launching the “No to payment card” initiative. The group advertises in English and Arabic on its website, offering detailed instructions on how to convert the benefits into cash.
Asylum seekers are advised to buy supermarket vouchers with their cards and exchange them for cash, or to participate in a “shopping tandem” scheme whereby they pay for a willing participant’s groceries with their card and receive cash.