payees

A payee is a person or organization that receives money from a payer as part of a financial transaction. The term is used across many contexts, including consumer payments, payroll, vendor or supplier payments, government benefits, and fiduciary arrangements. In each case, the payee is the recipient of funds, while the payer is the source of the payment.

In checks, the payee is the entity named on the instrument to receive the funds. In electronic transfers, the payee is the recipient whose bank account, mobile payment address, or other payment identifier is designated to receive the funds. In payroll, employees or contractors are payees who receive wages or salaries. In business-to-business transactions, payees are suppliers and vendors who get paid for goods or services. In government benefit programs, a beneficiary may have a representative payee—an individual or organization authorized to receive and manage payments on behalf of someone who cannot handle funds themselves.

Key information associated with payees includes accurate naming, payment instructions, and account details (such as bank account numbers, routing numbers, or payment addresses). Maintaining up-to-date payee records and implementing verification controls helps prevent misdirected payments and fraud. Regulatory and fiduciary contexts may require specific designations, such as representative payees for beneficiaries or designated recipients in escrow or trust arrangements.

Overall, the payee role is to receive funds as instructed by the payer, with the exact process and requirements varying by payment method and regulatory framework.