Asylum seekers bypass Germany’s restrictive prepayment card system with voucher loophole

A system meant to control aid spending backfires. One German group is turning vouchers into cash—and calling the card rules unconstitutional.

, and Administrator

2026 January 1 . 1:26 AM

1 min read

Here in this picture we can see a group of people standing near a store and protesting with banners... — Here in this picture we can see a group of people standing near a store and protesting with banners and play cards in their hands and behind them we can see a store and we can see a pillar and lights on the roof present over there.

Cash for asylum seekers from association in Greifswald - Asylum seekers bypass Germany’s restrictive prepayment card system with voucher loophole

A prepayment card system for asylum seekers was rolled out across Mecklenburg-Western Pomerania in 2025. The scheme aims to limit cash transactions and prevent money transfers to their home countries. Over 7,000 cards have been issued since its full implementation last summer.

The new system restricts cash withdrawals to €50 per person each month. Online purchases and bank transfers are also blocked under the rules. These measures were introduced to simplify financial aid and reduce administrative work.

However, an association called Greifswald Helps has found a way around the restrictions. Asylum seekers use their cards to buy vouchers in shops, then exchange them for cash at the group’s office. The deputy chair of Greifswald Helps confirmed this practice, arguing that the card system itself is unconstitutional. The Ostsee-Zeitung first reported on the scheme’s implementation. No other publicly known organisation in Greifswald is involved in similar activities, which would be illegal if uncovered.

The prepayment card was designed to control how asylum seekers access funds. But the exchange of vouchers for cash shows a clear workaround. Authorities have yet to respond to the claims made by Greifswald Helps.