Drawer vs. Drawee: Know the Difference
By Shumaila Saeed || Updated on December 25, 2023
"Drawer" refers to the person who writes or signs a check or draft, while "Drawee" is the entity (usually a bank) upon whom the check or draft is drawn and who is asked to pay the amount.
Key Differences
The "Drawer" is the individual or entity that initiates a financial transaction by writing a check or draft. In contrast, the "Drawee" is usually a financial institution that is requested to pay the specified amount on the check or draft written by the drawer.
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Nov 29, 2023
The "Drawer" holds the responsibility of ensuring there are sufficient funds for the transaction. Meanwhile, the "Drawee" has the legal obligation to honor the draft or check, provided the account has adequate funds and the transaction is valid.
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Nov 29, 2023
When writing a check, the "Drawer" is the account holder who signs the check. The "Drawee," in this case, is the bank where the drawer holds their account and which is expected to pay the check's amount to the payee.
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The "Drawer" essentially commands the "Drawee" to pay a specified sum to a third party (the payee). This relationship is a key aspect of many financial instruments, like checks and bills of exchange.
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Nov 29, 2023
The "Drawer" must ensure the accuracy and legality of the transaction. The "Drawee," on receiving the draft or check, must verify its authenticity and the availability of funds before completing the transaction.
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Comparison Chart
Example in Finance
Writes or signs a check or draft
Bank or financial institution
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Legal Obligation
Ensure sufficient funds, legality of check
Verify and process payment
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Example in a Check
Account holder who signs the check
Bank where the check is to be cashed
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Drawer and Drawee Definitions
Drawee
A party addressed in a bill of exchange
The drawee agreed to the terms of the bill.
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Drawer
An artist who creates drawings
The drawer captured the landscape beautifully.
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Drawee
The institution responsible for payment
As the drawee, the bank had to ensure funds were available.
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Drawer
A draftsperson in engineering
The drawer completed the technical schematics.
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Drawee
A person or organization that is to pay a draft
The drawee was given notice of the payment due.
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Drawer
A person who draws out funds
As a drawer, she withdrew cash from her account.
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Drawee
A bank on which a check is drawn
The drawee bank processed the check efficiently.
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Drawer
A person who draws a check
As the drawer of the check, he ensured it was correctly filled out.
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Drawee
The entity to pay a draft
The drawee was instructed to pay the specified amount.
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Drawer
One that draws, especially one that draws an order for the payment of money.
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Oct 19, 2023
Drawer
(also drôr) A boxlike compartment in furniture that can be pulled out and pushed in.
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Drawee
The person on whom an order or bill of exchange is drawn; - the correlative of drawer.
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Drawer
An open-topped box that can be slid in and out of the cabinet that contains it, used for storing clothing or other articles.
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Oct 19, 2023
Drawee
The person (or bank) who is expected to pay a check or draft when it is presented for payment
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Oct 19, 2023
Drawer
(banking) One who writes a bank draft, check/cheque, or promissory note.
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Oct 19, 2023
Drawer
A boxlike container in a piece of furniture; made so as to slide in and out
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Oct 19, 2023
Drawer
The person who writes a check or draft instructing the drawee to pay someone else
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Oct 19, 2023
Repeatedly Asked Queries
Is the "drawee" always a bank?
Usually, but a drawee can be any entity upon whom a financial document is drawn.
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Nov 29, 2023
Who is a "drawee"?
A "drawee" is typically a bank that is asked to pay the amount on a check or draft.
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What happens if a "drawee" refuses a check?
If a "drawee" refuses a check, it is usually due to insufficient funds or suspicious activity.
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Nov 29, 2023
Are "drawer" and "drawee" terms used outside of banking?
Primarily, they are used in banking and finance, but can apply to any transaction involving a draft.
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Can a "drawer" be a company?
Yes, a "drawer" can be an individual or a company.
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What is the responsibility of a "drawer"?
The "drawer" must ensure there are sufficient funds for the transaction.
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What does a "drawee" do when presented with a check?
The "drawee" verifies the check and pays the specified amount if funds are available.
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Nov 29, 2023
Can a "drawee" charge fees?
Yes, a "drawee" can charge fees for processing checks, especially for bounced checks.
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Nov 29, 2023
What is a "drawer" in banking?
A "drawer" is the person who writes or signs a check.
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Nov 29, 2023
Can a "drawer" cancel a draft?
Yes, a "drawer" can cancel a draft before it has been processed.
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Can a "drawer" stop payment on a check?
Yes, a "drawer" can issue a stop payment order on a check they have written.
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Who is liable if a check bounces?
The "drawer" is typically liable for any issues with the check they have issued.
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Can a "drawee" be a person?
Yes, if the person is responsible for paying a draft or bill.
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Nov 29, 2023
Does a "drawer" need a bank account?
Yes, a "drawer" needs a bank account to issue a valid check.
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What is the role of a "drawee" in a bill of exchange?
The "drawee" in a bill of exchange is responsible for paying the amount to the beneficiary.
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Nov 29, 2023
Is a "drawer" the same as a payor?
Yes, in the context of checks and drafts, a "drawer" is essentially the payor.
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Nov 29, 2023
How does a "drawee" verify a check?
The "drawee" verifies the signature, account details, and available funds.
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Nov 29, 2023
What is a "drawer's" signature?
It is the signature of the person who wrote the check, necessary for its validity.
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Can a "drawee" be liable for a faulty check?
Yes, if the "drawee" fails to identify a forgery or error, they can be liable.
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Nov 29, 2023
Is a "drawer" responsible for forged checks?
The "drawer" may be responsible, depending on the circumstances of the forgery.
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Nov 29, 2023
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About Author
Written by
Shumaila SaeedShumaila Saeed, an expert content creator with 6 years of experience, specializes in distilling complex topics into easily digestible comparisons, shining a light on the nuances that both inform and educate readers with clarity and accuracy.
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