Who is defined as the individual or company being paid by a check?

The individual or company being paid by a check is referred to as the payee. This term specifically designates the recipient of the funds, indicating who will benefit from the transaction. In the context of checks, the payee is the entity whose name is written on the check and is entitled to receive the payment as specified in the check's details.

Understanding the role of the payee is crucial in financial transactions, as it clarifies who is eligible to cash or deposit the check. The payee ensures that they properly identify themselves when presenting the check for payment, which is vital for security and correct processing of the transaction.

The other terms related to checks, such as payer, endorser, and payor, refer to different aspects of the transaction. The payer is the entity that issues the check and is responsible for the payment, while an endorser is someone who signs the back of the check, transferring ownership to another party. The term payor, although similar in meaning to payer, is less commonly used in this specific context.