Why are exchange offices exchanging payment cards for refugees? - Hesseās controversial payment card leaves refugees scrambling for cash alternatives
Refugees in Hesse now receive a large part of their state benefits on an Amex-like payment card instead of cash. The system, designed to limit shopping options, has led some to find workarounds through unofficial exchange offices. Yet officials say these platforms are not widely used across the region.
The card functions like a standard debit card but comes with strict limitsāonly ā¬50 in cash withdrawals per month is allowed.
The payment card was introduced for asylum seekers and rejected applicants with a temporary suspension of deportation (Duldung). It can be used anywhere in Germany, but many small shops, flea markets, and secondhand stores do not accept card payments. This forces refugees to rely on cash for essential purchases.
To bypass the restriction, some refugees turn to exchange offices. These businesses let users buy grocery vouchers with their payment cards, then exchange them for cash. Similar services have appeared in cities like Offenbach, where the card system is not yet active. However, the Social Affairs Ministry reports no evidence of widespread use of these platforms.
Hanau is the only municipality in Hesse where the Amex-like payment card is fully operational. The state plans to roll out the system to all first reception centres by late January 2026. Until then, refugees in most areas still receive benefits in cash or face limited access to funds.
The Amex-like payment card system aims to control how refugees spend their benefits. With only ā¬50 in cash available each month, many struggle to shop at places that do not accept cards. While unofficial exchange offices provide a temporary solution, officials maintain these are not common across Hesse.
