Germany’s New Prepaid Debit Card Limits Refugee Spending and Cash Withdrawals
Refugees in Germany will soon receive benefits through a new prepaid debit card system. The Leistungskarte, issued by local social welfare offices, replaces some cash payments with a restricted spending tool. The card aims to streamline support while setting clear limits on withdrawals and usage.
The card will function like a prepaid Visa debit, usable at any store accepting Visa payments. However, it will not link to a bank account, and overdrafts will be impossible. Refugees can withdraw up to €50 per month at ATMs or get cashback during purchases at participating shops. International transfers will be blocked.
Benefit rates will adjust next year. Single adults will receive €202 monthly for essentials, while married or partnered individuals will get €182 each. A sample family of two adults with children aged eight and ten will be allocated €634 per month. In rare cases, authorities may approve exemptions to the cash app withdrawal limit. Local Sozialämter will manage the card’s distribution, handling applications and approvals at a municipal level. Leipzig has already begun implementing the system, with other regions expected to follow.
The new system standardises benefit payments across federal states while restricting online payments. Refugees will rely on the card for most transactions, with limited ATM withdrawals. The changes take effect next year, altering how essential support is delivered.
