Payee is a noun that means the person who should receive money from a cheque, money order, or other document. Learn how to use payee in sentences, synonyms, pronunciation, and related terms. A payee is a person or entity that receives or is scheduled to receive a payment. The reason for the payment is a transfer of value from the payee to the payer. The meaning of PAYEE is one to whom money is or is to be paid. How to use payee in a sentence. Payee definition: a person to whom a check, money, etc., is payable.. See examples of PAYEE used in a sentence.