What Is a Payee?

A payee is someone who receives money from a payer. A payer is the person or organization making the payments to the payee. The money is typically for goods or services provided by the payee to the payer. The two parties must agree and understand who the payer and payee are before any money is transferred.

Payee Rights and Responsibilities

A payee has the right to receive payment from the payer in accordance with the terms of the agreement between them. After receiving payment, the payee is then responsible for tracking and confirming the payment was received in full. If the payments are for goods or services, the payee is responsible for providing the goods or services to the payer in accordance with the agreement.

Types of Payees

Payees can be individuals or organizations. The most common type of payee is an individual receiving money from an employer. Organizations or businesses are also common payees, as they receive payments for the goods and services they provide. Other payees can include healthcare providers, landlords, retailers, service providers, lenders, and vendors.