What is Payee

Learn about role, responsibilities, and impact of a payee on Bajaj Finserv.
What is Payee
4 mins read
03 Jan 2024

Understanding a payee

A payee, in the ecosystem of financial transactions, denotes an individual or entity receiving compensation for the provision of goods or services from another party. This common term is prevalent in various payment methods such as checks, electronic fund transfers, and wire transfers. The recipient of the payment is referred to as the payee, while the entity initiating the payment is the payer.

Identifying a payee

The identification of a payee is typically evident on payment instruments like checks, where the payee's name is explicitly mentioned. In the context of electronic fund transfers, identification relies on account numbers or unique identifiers. Ensuring the accuracy of payee information is imperative to mitigate the risk of errors or fraudulent activities in the payment process.

Payee request

A notable feature in the financial landscape is the payee request, a functionality that empowers the recipient to initiate a payment request from the payer. This feature is particularly prevalent in electronic fund transfers and mobile payment scenarios. The payee initiates the request, and upon the payer's authorisation, the payment is processed. This proves advantageous for businesses seeking timely collections from customers and individuals navigating shared expenses among friends or family members.

Confirmation of payee

Confirmation of payee emerges as a pivotal security feature employed to verify the payee's name during electronic payments. The primary objective is to prevent fraudulent activities by ensuring that payments are directed to the correct recipient. In this process, the payer's bank dispatches a name confirmation request to the payee's bank, and the payment proceeds only if the names align. Bajaj Finserv stands out as a financial institution leveraging COP (confirmation of payee) to furnish its customers with secure and efficient financial solutions, prioritising the integrity of transactions.

Also check:

E Wallet Frauds In India
Setting Wallet
IMPS Transaction Limit

Bajaj Finserv app for all your financial needs and goals

Trusted by 50 million+ customers in India, Bajaj Finserv App is a one-stop solution for all your financial needs and goals.

You can use the Bajaj Finserv App to:

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Disclaimer

1. Bajaj Finance Limited (“BFL”) is a Non-Banking Finance Company (NBFC) and Prepaid Payment Instrument Issuer offering financial services viz., loans, deposits, Bajaj Pay Wallet, Bajaj Pay UPI, bill payments and third-party wealth management products. The details mentioned in the respective product/ service document shall prevail in case of any inconsistency with respect to the information referring to BFL products and services on this page.

2. All other information, such as, the images, facts, statistics etc. (“information”) that are in addition to the details mentioned in the BFL’s product/ service document and which are being displayed on this page only depicts the summary of the information sourced from the public domain. The said information is neither owned by BFL nor it is to the exclusive knowledge of BFL. There may be inadvertent inaccuracies or typographical errors or delays in updating the said information. Hence, users are advised to independently exercise diligence by verifying complete information, including by consulting experts, if any. Users shall be the sole owner of the decision taken, if any, about suitability of the same.

Frequently asked questions

​​Who is called Payee?

The payee is the person or entity receiving a payment.

​​Which person is the payee?

The person is the recipient of the money or to whom the cheque is addressed to.

​​Who is the payee and recipient?

Both terms refer to the person receiving the money.

​​Who is Payee in bank?

In banking, the payee is the person or entity whose account will be credited with the transferred funds.

​​What is a payee example?

When you pay rent, your landlord is the payee. You are sending money, they are receiving it.

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