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Payor's PAD Agreement INSTRUCTIONS 1. The Payee must retain this agreement for at least 12 months after the last Pre-Authorized Debit (PAD) is issued. 2. The Payee can obtain the transaction type.
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Payors FAQ
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A payor is the person who is obligated to pay for an item, good, or service being provided to them. The payee of the transaction is the person, commercial business, or government receiving money or debts from the payor. Payments can be made in cash, by check, or through another financial payment option.
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A payor is a person paying money to someone else. They can also be called payers, which is an alternate spelling. The payor buys products, services or other items from the payee or is a debtor who owes money to the creditor/payee. He received a check from the payor, his employer.
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For example, on your paycheck (or any other check you receive), you should see your name written on the check, because you are the payee. For example, if you write a check to pay rent, your landlord is the payee, so you write your landlord's name (or the business name) on the check.
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The terms “payor” and “payer” have the same meaning and are often used interchangeably. The American Medical Association (AMA) recognizes “payor” as correct.
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The person or entity writing the check is known as the payor or drawer, while the person to whom the check is written is the payee. The drawee, on the other hand, is the bank on which the check is drawn. Checks may be cashed or deposited.
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