Travelers Express said it has acquired Financial Services Management Corp., Lake Lillian, Minn., the nation's largest processor of rebate checks.

FSMC will operate as a separate business with its management team intact under president Paul Forstrom, said Minneapolis-based Travelers Express, a money order and transaction processing subsidiary of Viad Corp., Phoenix.

"Rebate and refund check processing is an exciting new field for us," said Philip Milne, president and chief executive officer at Travelers Express. "We believe it fits very well into our payment-transaction portfolio of services and opens up new growth opportunities."

FSMC, which has 156 employees, said it clears nearly 70% of U.S. manufacturers' rebate checks. Since its start in 1983, the company has processed more than one billion checks for corporations and government agencies. It also handles gift certificates, payable-through drafts, controlled disbursements, and other specialized check services.

Travelers Express, now the largest money order processor and second- largest electronic bill payment processor, has made five acquisitions in the last two years.

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