Citibank, a unit of Citicorp, will operate what's known as an electronic benefits transfer systems for Hawaii, Colorado, Alaska, Arizona, Idaho and Washington. The cost of the contract was not disclosed.
Electronic benefits transfer systems, or EBT systems, replace welfare checks and paper food stamps with plastic debit cards that allow users to take out money from supermarket ATM machines to buy their groceries.
John Pfeuffer, vice president in Citibank's electronic business division, said that such systems are cheaper than printing and mailing checks and paper food stamps. They also cut down on fraud, he said.
The bank plans to start a pilot program by next year and will work with Deluxe Data and Lockheed Martin IMS to implement the system.
Citibank said it also will work closely with Bank of Hawaii for EBT work in Hawaii.
The six states are part of the Western State EBT Alliance, or WSEA, which was formed to streamline delivery of assistance benefits and lower administrative costs.