Payee
Accounting glossary · Understand, connect, apply
The payee is the person or entity to whom payment is directed under a check, note or other payment instruction.
Example
If a customer’s note promises to pay ABC Supplies, ABC Supplies is the payee.
Remember the difference
The payee and the original holder may differ after a lawful transfer. Follow the document and applicable law.
Updated 3 November 2026. Examples are simplified for learning. Where a term depends on US law, IFRS, US GAAP or a historical rule, check the context explained above and the requirements relevant to your course.
Study references: OpenStax financial accounting and managerial accounting. For reporting requirements, consult the applicable IFRS Standards or FASB guidance. US tax terms should be checked against the relevant tax-year IRS instructions.
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