File photo: An asylum seeker in Germany holding a payment card (January 2024) | Photo: Philipp von Ditfurth/picture-alliance
File photo: An asylum seeker in Germany holding a payment card (January 2024) | Photo: Philipp von Ditfurth/picture-alliance

A Bavarian court ordered alternative methods of paying the monthly allowance to two asylum seekers on Thursday. The claimants had taken the local authorities to court, arguing that the payment cards were too restrictive for their needs.

A court case brought by two asylum seekers against the Bavarian authorities has resulted in an additional pay-out method, directly into their bank accounts, reported the German press agency dpa on Thursday (August 1).

The decision was passed by a judge at a social court in Nuremberg, who said that two asylum seekers were right when they sued against the restrictions imposed by the payment card for asylum seekers (Bezahlkarte).

In this specific court case, reports dpa, the claimants said that they wanted to be able to order things over the internet, or even be able to shop in the nearby big town of Nuremberg, both of which was difficult when all their money was contained within the payment card.

Individual circumstances

In both court cases, the judges have essentially ruled that having a strict upper limit and exactly the same rules for everyone, regardless of individual circumstances is not in itself fair. However, both court authorities have been keen to underline that these decisions should not set a precedent for every asylum seeker and their payment cards in Germany.

The expedited procedure against the town of Schwabach found that in future the town’s authorities should transfer money to the two claimants directly into their bank account and not solely place it on the payment card, which is only valid in certain shops and for certain items.

The decision is not yet legally binding, underlined the court.

Also read: 'People look at you funny' when you have a payment card

Payment card system in Germany

The payment card system, whereby asylum seekers receive their monthly allowance for food and household goods directly onto a payment card, has been in operation in the German state of Bavaria since the end of June.

More and more authorities in Germany have moved over to providing allowances via these cards, in an effort to stop asylum seekers using the money to send home to support family in their home countries, or for things the money is not intended. They had hoped that it would mean that the support provided by the German authorities would then stay in the country and actually help move the asylum seekers forward in their integration path in Germany.

In Bavaria, reports dpa, the cards can be used in certain shops to buy groceries and other household items, and asylum seekers can also withdraw up to 50 euros a month in cash against the cards to buy other things that might not be covered by the shops that are part of the payment card network.

Also read: Germany's payment card scheme for asylum seekers

Cards meant to be used regionally

The cards are meant to be used regionally, and are not useable for online purchases. This is to stop misuse of the cards, say the authorities, and also to prevent onward migration.

Instead though, many asylum seekers and organizations that support migrants, refugees and asylum seekers have criticized the cards. They say that either the money is not enough to buy what people need, or want, and that it restricts the freedom of choice of the individual.

Payments on the cards vary depending if they are for a single person, or a family with children and sometimes depending on the state where the payment cards are issued, but most states seem to have set a 50 euros limit on the amount of cash you can take out monthly. The German authorities, reports KNA, want to prevent that the money is given to either family and friends, or even smugglers to bring more migrants towards Europe and Germany.

Hamburg case

The court case is not the first time that an asylum seeker in Germany has managed to overturn the standard practice. Last week, a court in Hamburg decided in the individual case of one woman that she was entitled to receive a higher amount in cash than is normally allowed on the card.

In that case too, the court underlined this was an individual decision and should not be used to set a precedent for the entire country or practice of payment cards. In the case of the Hamburg claimant, she argued that she had children and was pregnant and so needed more leeway than the payment card was offering to buy what was needed for her children.

Also read: Court rules fixed cash amount on payment card unlawful

Chief Söder holds firm on use of payment cards in Bavaria

Last week, in response to the Hamburg decision, Bavaria’s leader CSU chief Markus Söder said that he was determined to keep the payment card system in his region, reported the Catholic news agency KNA.

He called the payment cards "an important instrument." He also underlined that he was not ready to change the upper limit of the cash withdrawals, and wanted it to remain at 50 euros per month.

Söder told KNA, “When you get your food paid for, when you get your accommodation paid for, when you are given clothes, and toiletries, then it is important that you are not given huge sums of cash that could potentially be transferred to all manner of different places.”

Söder and the conservative opposition CDU /CSU parties have been proposing lately that the amount of welfare benefits paid to refugees and asylum seekers should also be reduced, and shouldn’t be equal to the money paid to unemployed or in-need German citizens. According to the conservative opposition, and Söder himself, that would send the wrong signal to people, that you don’t need to work and can just come to Germany to be supported by the state.

Also read: Germany to introduce payment cards for asylum seekers

With KNA and dpa