payee

USAGE SUMMARY

'payee' is a correct word in written English.
It is a noun that refers to the person to whom money is owed in a transaction. For example: The payee of the loan must sign the documentation before the funds can be released.

✓ Grammatically correct

News & Media

Encyclopedias

Human-verified examples from authoritative sources

Exact Expressions

44 human-written examples

Mr Gilmartin says that the money was meant to be a contribution to party funds but that Mr Flynn, who denies wrongdoing, told him to leave the cheque's payee line blank.This is where Mr Ahern comes in.

The Economist

The report also found that young mobile bankers were likely to use more products and less likely to incur overdraft fees.Finextra, a financial news agency, conducted research which found that over a quarter of 18- to 24-year-olds are frustrated by using a card reader every time they set up a new payee.

The Economist

Although banks can use these codes to identify online gambling firms and their intermediaries, they cannot readily do the same for other sorts of transactions, many of which are likely to be exempted from the final regulations".Banks have no way now of reading who the payee is on paper cheques," according to Nelson Rose, a gambling expert at the Whittier Law School in California.

The Economist

It has been defined in England as an unconditional order in writing addressed by one person to another, signed by the person giving it (the drawer), and requiring the person to whom it is addressed (the drawee) to pay on demand or at a fixed or determinable future time a certain sum of money to, or to the order of, a specified person (the payee) or to the bearer.

Encyclopedia Britannica

If homeless people do not have a bank account they can receive their benefits through direct mail to a third party or having a relative assigned as your representative payee.

Independent

To support the appeal, send a cheque to George Batts, national secretary/treasurer, NVA, 1 Chervilles, Barming, Maidstone, Kent, ME16 9JE with "NVA Overlord Productions" as the payee.

Independent

Human-verified similar examples from authoritative sources

Similar Expressions

16 human-written examples

Bonds may be registered in the names of designated parties, as payees, though more often, in order to facilitate handling, they are made payable to the "bearer".

Encyclopedia Britannica

Either producers must find a way to record and transfer balances from many users to many payees, or users must purchase many special-purpose cards.

Encyclopedia Britannica

In addition to guides for power of attorney agents and representative payees, there are guides for those who have been appointed guardians by a court and for those named as trustees under "revocable living trusts".

The New York Times

Roughly 22 million people age 60 and older have named someone in a power of attorney to make financial decisions for them, Ms. Karp said, and about four million adults on Social Security or Supplemental Security Income have representative payees; 85 percent are family members, without any professional experience acting on someone else's behalf.

The New York Times

The names of some individual payees are left out because the payments involve salary or expense reimbursements.

The New York Times

Expert writing Tips

Best practice

When writing checks, clearly indicate the "payee" to avoid fraud or misdirection of funds. Ensure the name matches official records to prevent processing issues.

Common error

Avoid confusing "payee" with "payer". The "payee" is the one receiving the money, while the payer is the one making the payment. Using the terms incorrectly can lead to misunderstanding and errors in financial documents.

Linguistic Context

The noun "payee" functions as a designator, identifying the entity receiving a payment. As Ludwig AI explains, it's a crucial term in financial transactions. Examples from Ludwig show it used in contexts of checks, bank transfers, and social security benefits.

Expression frequency: Very common

Frequent in

News & Media

66%

Encyclopedias

8%

Formal & Business

4%

Less common in

Science

4%

Reference

0%

Social Media

0%

Ludwig's WRAP-UP

The term "payee" is a common and crucial noun in financial contexts, referring to the entity receiving a payment. As Ludwig AI confirms, it's grammatically correct and widely used. Ludwig examples highlight its prevalence in news, encyclopedias and business-related content. It's important to distinguish "payee" from "payer", as they represent opposite roles in a transaction. When writing, ensure clear indication of the "payee" to avoid errors or fraud. Considering alternatives like "recipient" or "beneficiary" may offer nuance in certain situations.

More alternative expressions

Phrases that express similar concepts, ordered by semantic similarity:

recipient of payment

More descriptive, specifying the action of receiving payment.

one who is paid

Simple restatement using a descriptive phrase.

recipient

General term for someone who receives something.

beneficiary

Broader term, encompassing anyone who benefits from something, not strictly payment.

claimant

Refers to someone making a claim for money, often in insurance or legal contexts.

creditor

Entity to whom money is owed; highlights the perspective of the lender.

endorsed

Specifically refers to someone to whom a negotiable instrument is transferred by endorsement.

transferee

General term for someone receiving a transfer of assets or rights.

grantee

Someone who receives a grant, often from a government or organization.

obligee

Party to whom an obligation is owed.

FAQs

How do I use "payee" in a sentence?

The term "payee" refers to the person or entity receiving a payment. For example, "Ensure the check is made out to the correct "payee"."

What's an alternative to saying "payee"?

Depending on the context, you could use alternatives like "recipient", "beneficiary", or "claimant". Each of these terms carries slightly different connotations.

What is the difference between "payer" and "payee"?

The "payer" is the individual or organization making a payment, while the "payee" is the individual or organization receiving the payment. They are opposite roles in a financial transaction.

Can the "payee" endorse a check to someone else?

Yes, the "payee" can endorse a check by signing the back of it, thereby transferring the payment to another party.