T-TECH, a wholly owned subsidiary of First Citizens, will offer the check conversion processing services to banks that can in turn market the product directly to their business customers.

“Even as electronic payment systems make advances, consumers continue to write billions of checks every year, and we see no signs that consumer preference for paper checks is slowing,” said Jim Hyler, vice chairman of First Citizens. “Electronic check conversion allows consumers to retain the use of paper checks while offering businesses the greater efficiency of electronic transactions.”

Consumers write nearly 70 billion checks each year and make $635 billion in payments through checks at the point of sale.

Electronic check conversion uses the existing automated clearinghouse system to collect checks at the point of sale as electronic debits. The check is scanned through a reader, and the transaction is completed electronically. The voided paper check is returned to the customer along with a receipt for the transaction at the point of sale. The funds are collected electronically and direct-deposited into the merchant’s checking account.

Electronic check conversion makes business deposits available quicker because it does not require paper deposit slips and avoids the standard 2 p.m. deadline for funds to be credited on the day they are deposited. The system also utilizes check verification, which compares account information to a national database to determine if there is a history of fraudulent activity.

Wiley Tillett, a former First Citizens executive in electronic commerce and item processing, is president of T-TECH.

First Citizens Bank is offering T-TECH’s services to its business customers through its merchant services division.

T-TECH, based in Charlotte, is marketing the service to small and mid-size banks.