payee

noun pay·ee \ (ˌ)pā-ˈē \
Updated on: 30 Nov 2017

Definition of payee

: one to whom money is or is to be paid
  • The payee must endorse the back of the check.

Examples of payee in a Sentence

  1. The payee must endorse the back of the check.

Recent Examples of payee from the Web

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.

First Known Use of payee

1758


Financial Definition of PAYEE

payee

What It Is

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.

How It Works

There are a number of examples of payees. A payee is the person to whom a check, promissory note, draft or bill is written out. A payee may also be the one who holds the coupons of a bond.

An example of a payee in a check is one whose name appears in the caption "Pay to the Order of" on most checks.

Why It Matters

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.


PAYEE Defined for English Language Learners

payee

noun

Definition of payee for English Language Learners

  • : a person or organization that receives money : a person or organization that is paid


Law Dictionary

payee

noun pay·ee \ ˌpā-ˈē \

legal Definition of payee

: a person to whom money is to be or has been paid; specifically : the person named in a bill of exchange, note, or check as the one to whom the amount is directed to be paid — compare drawee, drawer


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