An organisation or individual that you pay is referred to as a payee. They are typically the person or business who receives the payment and are the designated recipient of the money listed on the cheque. The cheques have their name printed on them. Read on to get complete details on who is payee in cheque.
Who is a payee in a cheque?
The payee can be a person, like a friend or member of the family, or a vendor or supplier. To guarantee that the correct person receives the funds, it is crucial to identify the payee on a cheque correctly. To prevent any possible mistakes, it is important to double-check with the payee if there is any uncertainty or ambiguity over their name.
Let’s check the clearance process of account payee cheque below:
The payee first goes to the bank and deposits the cheque.
By requesting payment from the drawer's bank, the bank will begin the procedure of clearing the cheque. Also, the drawer's bank receives a scanned copy of the cheque from the payee's bank.
The drawer's bank will begin the payment procedure after carefully examining the data, such as signatures. If there are adequate funds in the drawer's account, the money will be paid.
The amount will then be credited to the payee's account after the bank has finished processing the payment.
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Who is Payee in Cheque?
Aabir
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2023-06-30T14:17:35+00:00 2023-06-30T14:21:19+00:00Comment
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