Tel: Fax: We respect your privacy and confidentiality. To learn more, please read our Privacy Policy. All trademarks and logos are the property of their respective owners. You should also confirm that the payee agrees with your preferred payment options.
D epending on the chosen payment option, there may be fees associated with the transaction. Which party covers the fees is dependant on the specific payment choice.
However, payees that accept credit and debit cards are responsible for covering the fees associated with accepting cards as payment. World View. Payment is a financial transaction where value is traded between two parties , with one party making a payment—a payee —and another party receiving the payment—a payer , also known as a payor. Financial transaction: Cash, check, bank wire transfer, electronic transfer, debit or credit card, money order, note or bill of exchange, stock shares or any other payment method.
Barter transaction: Exchange of one item for another without using money. Public entity e. Private entity e. Interestingly, there may be multiple payees and payers payors within one transaction. Conversely, the payee and payer can sometimes be one and the same entity. Transacting with goods and services. Fulfilling financial and legal obligations. Trading anything that is of value or benefit to the parties. Emilie is a Certified Accountant and Banker with Master's in Business and 15 years of experience in finance and accounting from large corporates and banks, as well as fast-growing start-ups.
Explanation Differences Examples. Emilie N. Share on facebook. Share on twitter. Share on pinterest. Share on linkedin. Payee Payer Payor: Sender or Receiver? A payee is an individual, commercial or governmental entity that provides products, services or other items of value to another party known as a payer or payor in an exchange transaction and in return receives a payment from the payer or payor. A payer, also known as a payor, is a private or public entity that is obliged to pay an invoice or bill, satisfy a claim, settle debt or another financial or legal obligation with another entity known as a payee.
Payor, or payer, is a party in a financial transaction that makes a payment to another party known as a payee in exchange for goods, services, and other items of value or benefit. Payer vs. Creditor Debtor who owes to a creditor Creditor who is owed by a debtor 3 Sender vs. For coupon payments from bonds, the party receiving the coupon is the payee and the bond issuer is referred to as the payer.
Payees have the ability to accept or reject amounts being paid to them, based on an agreement or contract. Investment management transactions frequently have payee accounts that receive payments for the benefit of a client's separate account.
For example, in contributing to an individual retirement account IRA , a customer e. Payees may also be more than one party. This typically happens in electronic transfers when a person withdraws money from the payer's account and splits it into a variety of payee allocations.
Depending on the banking institution, these types of transactions may have approval requirements for numbers, percentages, and types of accounts. Sometimes, the payee and payer may be the same party. This can occur when a person writes checks, makes withdrawals and deposits, or electronically transfers funds from one of their accounts to another. It is a good practice to ensure that the payer and the payee are in agreement on the amount being transferred between parties to avoid disputes.
The SSA outlines an entire process on how to become a representative payee, what the duties are, and how the process should be managed and reported. A representative payee has rights and powers similar to that of a conventional payee, but a representative payee must manage money for the benefit of the actual beneficiary. Funds must be spent on or saved for only in ways that help the beneficiary. In this aspect, the representative is acting as the fiduciary to the actual payee.
Representative payees exist to take the burden of money management off the beneficiary's plate. An effective representative payee should improve the beneficiary's life. If a representative payee is doing something that works against an ultimate beneficiary, the Social Security Administration should be immediately notified.
Social Security.
0コメント