NRW Begins Rollout of Prepaid Cards for Refugees, Limiting Cash Withdrawals

The new system aims to streamline administration, reduce misuse, and discourage irregular migration, but faces criticism and potential implementation challenges.

North Rhine-Westphalia has introduced prepaid 'Social-Cards' for refugees, starting in five state-run facilities, with plans to expand to 50 more by March 2025.
The cards limit cash withdrawals to €50 per month, while remaining funds can only be used for non-cash transactions, excluding gambling and overseas transfers.
The initiative, adopted by 14 German states, seeks to prevent funds from being sent to smugglers or families abroad and to ease administrative burdens on municipalities.
Critics, including opposition parties and local councils, warn of a fragmented implementation as municipalities can opt out, potentially leading to inconsistent adoption across regions.
Concerns over misuse have emerged, with reports of 'exchange markets' circumventing cash limits; the CSU has proposed stricter measures, including technical blocks and legal penalties, to address these issues.

Frankfurter Allgemeine Zeitung