What is drawer and drawee and payee?

In other way, the person/company from whose account money is drawn is known as drawer, the bank who is facilitating withdrawal of money from person/company account is known as drawee, and the person who is paid money is known as payee.

What is drawer drawee?

Drawee is a legal and banking term used to describe the party that has been directed by the depositor to pay a certain sum of money to the person presenting the check or draft. The bank that cashes your check is the drawee, your employer who wrote the check is the drawer, and you are the payee.

Who is a payee?

A payee is a party in an exchange of goods or services who receives payment. The payer receives goods or services in return. The name of the payee is included in the bill of exchange and it usually refers to a natural person or an entity such as a business, trust, or custodian.

Who is called drawer?

The maker of a bill of exchange or cheque is called the “drawer”; the person thereby directed to pay is called the “drawee”.

What is drawer in banking?

Drawer: the person or entity whose transaction account is to be drawn. Usually, the drawer’s name and account is preprinted on the cheque, and the drawer is usually the signatory. Drawee: the bank or other financial institution where the cheque can be presented for payment. This is usually preprinted on the cheque.

Who is a drawer in banking?

What does refer to drawer mean in banking?

refer to drawer in British English a request by a bank that the payee consult the drawer concerning a cheque payable by that bank (usually because the drawer has insufficient funds in his or her account), payment being suspended in the meantime.

What is the difference between drawer and drawee?

As nouns the difference between drawer and drawee. is that drawer is an open-topped box that can be slid in and out of the cabinet that contains it, used for storing clothing or other articles while drawee is (legal) the party directed to pay the amount of a draft or cheque.

What’s the difference between a drawer and a drawee?

Drawer is a related term of drawee. As nouns the difference between drawer and drawee is that drawer is an open-topped box that can be slid in and out of the cabinet that contains it, used for storing clothing or other articles while drawee is (legal) the party directed to pay the amount of a draft or cheque.

What does drawee mean?

Definition of drawee : the party on which an order or bill of exchange is drawn : the party (as a bank) on which a draft is drawn — compare drawer, payee

What does payee mean on check?

A payee is the person to whom a check, promissory note, draft or bill is written out. A payee may also be the one who holds the coupons of a bond. An example of a payee in a check is one whose name appears in the caption “Pay to the Order of” on most checks. The payee is the one with legal rights to a payment.