Germany Rolls Out Prepaid Cards for Refugees to Limit Cash Use

The initiative aims to reduce cash transactions, curtail human trafficking, and streamline social benefit distribution.

Hesse will begin issuing prepaid debit cards to refugees starting Monday, with other German states following suit in 2025.
The cards, which do not require a bank account, will be loaded monthly and allow a maximum cash withdrawal of €50 per person.
The program seeks to prevent money transfers to smugglers or abroad, reduce irregular migration, and ease administrative burdens on municipalities.
Saxony plans to implement the system statewide in 2025, replacing existing pilot card models and ensuring uniform regulations across all cities and districts.
Critics, including the AfD, have raised concerns about potential misuse of the cards, but other political parties have dismissed these claims as unfounded and populist.