A payor is someone who pays money that is owed. The word is often used in business, healthcare, and legal settings to describe the person or organization responsible for making a payment.

In healthcare, insurance companies are often called payors because they pay medical bills on behalf of their customers. When you go to the doctor, you might be the patient, but your parents' insurance company is the payor that covers most of the cost.

In everyday business, if your family hires a plumber to fix a leaky pipe, whoever writes the check or pays the bill becomes the payor. In legal contracts, the payor is the party who owes the money, while the person receiving it is called the payee.

You might also see this word spelled “payer,” which means exactly the same thing. Either spelling works, though lawyers and accountants tend to prefer payor.