A payor (also referred to as a “payer”) is the party that is submitting payment in a financial transaction or obligation. Payor is not to be confused with payee, which is the person or party who receives payment.
For instance, a payor would be the drawer of a check while the payee is the recipient. A payor does not have the ability to tell the bank when and where to submit payment; rather, only the payee has control of depositing the check. However, payors and payees exchange payment in other methods, not just via check. Cash, wire transfer, and apps like PayPal and Venmo are examples of where a payor can submit payment.