Proposal for a payment card for refugees

Caritas Central Switzerland has intervened in the debate on the introduction of a prepaid card for asylum seekers in the canton of Zug. As a specialist organisation, it is addressing the Zug cantonal parliament.

Germany has decided to introduce a nationwide prepaid card for refugees. The issue is being discussed in Switzerland, with corresponding motions being submitted in various cantonal parliaments, some of which have already been dealt with. Nowadays, most people actually prefer to pay for goods and services without cash. The SVP parliamentary group (Swiss People’s party) in the Zug cantonal council (Kantonsrat) has also submitted a request to this effect.

The Zug cantonal government has now submitted its report and proposal on the motion ‘concerning credit on payment cards instead of cash for asylum seekers and rejected asylum seekers’. The government is in favour of the introduction of a payment card system for asylum seekers. However, it is requesting that the motion be converted into a postulate that is to be declared substantial. The reasons for this are existing hurdles under federal law. Discussion of the matter has been put on the agenda for the meeting on the 30th January 2025.

Caritas rejects the introduction of cards
The SVP motion demands the introduction of the cards for asylum seekers and rejected asylum seekers, but not for recognised refugees. An extension to this group would ‘only be legally permissible on the basis of federal regulations if the payment card were to be introduced across the board for all social welfare recipients in the canton of Zug’, writes the cantonal government in its report. In other words, not just to people in the asylum sector.

The Zug cantonal parliament is discussing a motion from the SVP parliamentary group on the introduction of payment cards in the asylum sector        Symbolic image: Imago

Caritas Central Switzerland has already taken a stand on the issue in the past, and is now writing to all the cantonal councillors. ‘Caritas Central Switzerland rejects the introduction of a payment card for people from the asylum sector or for welfare recipients,’ writes Caritas Central Switzerland Managing Director Daniel Furrer. ‘This card represents a vote of no confidence in people living in poverty,’ he continues.

It is true that migrants demonstrably send money to their countries of origin. However, due to the low rates, ‘this is unrealistic for asylum seekers receiving social welfare. But the creation of additional hurdles through a payment card could lead to more people deciding to enter the labour market,’ the letter continues. Such people in particular are at risk of becoming so-called ‘working poor’ (people who are affected by poverty despite having a job).

People are stigmatised
‘People on social welfare often live in difficult circumstances,’ writes the organisation. Additional hurdles lead to ‘increased marginalisation’ and could have ‘negative effects on health and lead to higher social costs’ - Caritas Central Switzerland also points out that children would be particularly affected, as they would not be able to pay by card. ‘This could limit their social participation, for example in school trips or leisure activities.’

According to Caritas, the government's estimated introduction costs of CHF 100,000 and annual operating costs of CHF 80,000 are also unsustainable. ‘Social follow-up costs’ are not taken into account. And as the government itself writes, the costs of such payment cards are considerable and bring no benefits, according to the federal government.

Social assistance payments are made in accordance with the guidelines of the Swiss Conference for Social Assistance (SKOS). According to these guidelines, the money should ‘enable participation in economic, social, cultural and political life and thereby guarantee the conditions for a dignified existence’, according to Caritas. The introduction of a payment card would no longer make this possible.

‘For a self-determined life and successful integration, it is essential to have room for manoeuvre in the use of the minimum subsistence level,’ concludes the Caritas letter.