Definition of payee
- The payee must endorse the back of the check.
The payee must endorse the back of the check.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'payee.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
The term "payee" refers to an individual or entity that will receive a payment. It can also be referred to as the beneficiary in situations that pertain to a benefactor.
An example of a payee in a check is one whose name appears in the caption "Pay to the Order of" on most checks.
The payee is the one with legal rights to a payment. It is therefore essential to decipher who the individual or entity is that is to receive payment in any financial transaction. In any contract of a financial transaction where it is unclear who the payee and payer are, the contract may be invalid or there may be provisions within the law about how to determine rights in such situations.
What made you want to look up payee? Please tell us where you read or heard it (including the quote, if possible).