National Check Professional (NCP) Certification Practice Test

Who is typically referred to as the Payee on a check?

1. The institution that cashes the check

2. The person/business getting the check written out to them

3. The person writing the check

4. The bank where the drawer has an account

The correct answer is: The person/business getting the check written out to them

The payee on a check is the person or business to whom the check is made payable. This means they are the recipient of the funds when the check is cashed or deposited. When someone writes a check, they specify the name of the payee on the check, indicating who will receive the money. This label signifies the individual or entity entitled to the funds as a result of the check being honored. In this context, the other options do not accurately describe the role of the payee. The institution that cashes the check refers to the bank or establishment handling the check, not the recipient. The person writing the check is known as the drawer, and the bank where the drawer has an account is simply the financial institution that holds the drawer's funds and processes the transaction. Hence, the correct choice identifies the rightful recipient of the check, making it clear that the payee is the one getting the check written out to them.