Payee: meaning, definitions and examples

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payee

[ˌpeɪˈiː ]

Definitions

^{Context #1 | Noun}

financial transactions

A payee is a person or organization to whom money is paid or is to be paid.

Synonyms

beneficiary, receiver, recipient.

Which Synonym Should You Choose?

Word	Description / Examples
payee	This term is used in financial and banking contexts to refer to the person or entity to whom a payment is made or is due. The payee must endorse the check before cashing it. Ensure the correct details of the payee to avoid transaction errors.
recipient	This word is broadly used to refer to a person who receives something, such as an award, email, gift, or message, in general contexts. The recipient of the award gave a heartfelt speech. Please check that the recipient's email address is correct before sending.
beneficiary	This word is often used in legal, insurance, and estate planning contexts to denote a person who receives benefits, money, or other advantages from a will, insurance policy, or trust. She named her son as the primary beneficiary of her life insurance policy. The trust will ensure that the beneficiary receives funds when they turn 18.
receiver	This term can be used in various contexts, typically to indicate someone who receives something. It is often used in telecommunications, sports, and legal contexts. The court-appointed receiver took control of the company's assets during the bankruptcy proceedings. In American football, the receiver caught the ball and scored a touchdown.

Examples of usage

The payee of the check is the landlord.
Please make sure to write the correct payee on the money order.

^{Context #2 | Noun}

legal documents

In legal documents, the payee is the person to whom an obligation is owed.

Synonyms

creditor, obligee.

Which Synonym Should You Choose?

Word	Description / Examples
payee	Use this term when referring to the person or entity who is receiving a payment. This term is commonly used in personal finance, business transactions, and banking. It is a neutral term. Please write the name of the payee on the check. The payee will receive the funds within three business days.
obligee	This term is appropriate when referring to someone to whom an obligation is owed, such as a contractual duty or a bond. It is often used in legal and formal agreements. The term is neutral. The obligee has the right to enforce the terms of the contract. She is the obligee in the agreement, ensuring that all conditions are met.
creditor	Use this term when referring to an individual or institution that has extended credit or a loan to another party and is owed repayment. This word is commonly used in financial contexts, especially in relation to debt and loans. It sometimes can have a slightly negative connotation if referring to debt collection. The creditor demanded immediate repayment of the overdue loan. He is a creditor to several small businesses.

Word

Description / Examples

payee

Use this term when referring to the person or entity who is receiving a payment. This term is commonly used in personal finance, business transactions, and banking. It is a neutral term.

Please write the name of the payee on the check.
The payee will receive the funds within three business days.

obligee

This term is appropriate when referring to someone to whom an obligation is owed, such as a contractual duty or a bond. It is often used in legal and formal agreements. The term is neutral.

The obligee has the right to enforce the terms of the contract.
She is the obligee in the agreement, ensuring that all conditions are met.

creditor

Use this term when referring to an individual or institution that has extended credit or a loan to another party and is owed repayment. This word is commonly used in financial contexts, especially in relation to debt and loans. It sometimes can have a slightly negative connotation if referring to debt collection.

The creditor demanded immediate repayment of the overdue loan.
He is a creditor to several small businesses.

Examples of usage

The payee of the promissory note is the lender.
The payee of the contract has the right to enforce its terms.

Interesting Facts

Etymology

The term derives from the Old French word 'payer', meaning 'to pay', which reflects its function in financial transactions.
The suffix '-ee' indicates a person who receives an action, making 'payee' signify someone who is 'paid'.

Legal Aspects

In contracts, identifying the payee ensures that funds are directed to the correct recipient, vital for legal clarity.
Financial institutions often require the payee's details for processing transactions, safeguarding against fraud.

Finance

Payees can be individuals or entities, such as businesses, and are critical in various financial processes, including loans and insurance claims.
Understanding different types of payees, like primary and secondary, helps clarify responsibilities in financial documents.

Pop Culture

The term 'payee' has made appearances in various films and TV shows, often in scenes depicting financial transactions or contracts.
In modern business shows, the role of a payee is humorously highlighted when characters misunderstand financial deals.

Technology

With the rise of digital payments, the concept of a payee has evolved, integrating new methods like mobile wallets and online banking.
Smart contracts on blockchain technology redefine payees by automating the payment process, ensuring accuracy and speed.

Translations

Translations of the word "payee" in other languages:

🇵🇹 beneficiário

🇮🇳 प्राप्तकर्ता

🇩🇪 Empfänger

🇮🇩 penerima

🇺🇦 отримувач

🇵🇱 beneficjent

🇯🇵 受取人

🇫🇷 bénéficiaire

🇪🇸 beneficiario

🇹🇷 alacaklı

🇰🇷 수취인

🇸🇦 المستفيد

🇨🇿 příjemce

🇸🇰 príjemca

🇨🇳 收款人

🇸🇮 prejemnik

🇮🇸 viðtakandi

🇰🇿 алушы

🇬🇪 მიმღები

🇦🇿 alqı

🇲🇽 beneficiario

Word Frequency Rank

Ranked #12,358, this word falls into high-advanced vocabulary. It appears less frequently but is valuable for expressing precise meanings in specific contexts.

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12355 bullion
12356 coma
12357 mosque
12358 payee
12359 thrombosis
12360 alias
12361 mum
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