Who is considered the one ordered to pay the money in a financial transaction?

In a financial transaction, the individual or entity that is ordered to pay the money is known as the drawee. The drawee is typically a bank or financial institution that holds the funds of the drawer and is responsible for fulfilling the payment request as specified in instruments such as checks or drafts.

This role is critical because it represents the entity that will ultimately disburse the funds to the designated party. In contrast, the payee is the individual or party to whom the payment is being made, while the drawer is the one who writes the check or initiates the payment. The beneficiary usually refers to someone who benefits from the transaction, but does not inherently involve the mechanics of the payment process itself. Understanding these roles clarifies the flow of funds and obligations in financial transactions.