Payee

A payee is the individual or entity that receives payment in a financial transaction. The payment may be for goods, services, or the settlement of a financial obligation. Key Features Role in a Transaction The payee is the recipient of money from the payer. The payer provides money in exchange for goods, services, or fulfillment of an obligation. Forms of Payment Cash Cheque Bank transfer Digital payment methods (UPI, cards, online wallets) Legal Documentation In instruments like a bill of exchange or promissory note, the payee’s name is specified, ensuring clarity of the recipient. Possible Payees Individuals Businesses or corporations Trusts or custodians Government or non-profit organizations

Example: A customer purchases goods from a store and pays ₹5,000. Payer: Customer Payee: Store owner, who receives the payment for the goods.