A payee is the person or organization that receives money in a transaction. When you write a check, the payee is whoever you're paying: the name you write after “Pay to the order of.” When your parents get their paychecks from work, they're the payees because the money is coming to them.

You'll see this word on checks, money orders, and official payment documents. If you're selling lemonade and someone writes you a check for two dollars, you're the payee. If your school sends a check to a book supplier, the supplier is the payee. Banks and businesses use this term to keep track of where money is going and who should receive it.

The opposite of a payee is a payer (or payor), the person or organization sending the money. In any payment, there's always someone giving the money and someone receiving it: the payer and the payee.