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Definition of 'Payee'

A payee is a person or company that receives money from another person or company. The payee is typically the person or company that is supposed to receive the money, as opposed to the payer, who is the person or company that is sending the money.

The payee's name and address are typically included on a check or other payment document. The payee's bank account number may also be included, if the payment is being made by direct deposit.

When a payment is made, the payer is responsible for ensuring that the payee's information is correct. If the payee's information is incorrect, the payment may not be received by the intended recipient.

There are a number of different ways to make a payment to a payee. The most common way is to write a check. Checks can be made payable to a specific person or company, or they can be made payable to "cash."

Another way to make a payment to a payee is to use a money order. Money orders can be purchased at most banks and post offices. When you purchase a money order, you will need to provide the payee's name and address.

You can also make a payment to a payee using a wire transfer. Wire transfers are typically faster than checks or money orders, but they also typically cost more.

When you make a payment to a payee, it is important to keep a record of the transaction. This record should include the date of the payment, the amount of the payment, and the payee's name and address. This record will help you to track your payments and to ensure that you are not overpaying or underpaying any of your bills.

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