What term refers to the individual who makes a payment to another?

The term that refers to the individual who makes a payment to another is "Payor." This is a key concept in financial transactions, where the payor is responsible for providing the funds to fulfill an obligation, such as a bill or a loan repayment. Understanding the role of the payor is essential in the context of banking and finance, as it clarifies the responsibilities of each party involved in a transaction.

The payor initiates the payment, which is typically directed towards a payee, the person or entity receiving the funds. Recognizing this distinction helps in grasping the flow of money in various financial contexts. The relationship between the payor and payee is foundational in the fields of banking and financial systems, emphasizing the importance of understanding the terminologies involved in these dealings.