Recipients, meaning the person or entity receiving money in a transfer, are the second half of a financial transaction.
In this article, we’ll explain exactly what a recipient is, provide you with five examples, and answer common questions on the topic.
This article is part of our free series European banking, specifically opening a UK bank account without proof of address, which you can access by clicking here.
Feel free to use the table of contents to jump ahead to the sections most relevant to you.
Table of Contents
- Recipients Meaning
- Examples of Recipients
- Frequently Asked Questions
- Do You Want Help Opening Bank Accounts?
Recipients Meaning
Recipients, meaning an individual or entity receiving a financial transfer, are the second party to a transaction. The first party that initiates the transaction is the sender. The recipient’s role in transactions is to provide the sender with the correct account information, which ensures the transaction arrives in the correct account.
That said, in most instances, there is an exchange of goods or services before the transaction is sent. This is most often the case in commercial transactions, where a customer or client is sending payment to a service provider or business.
Of course, in other instances, where an individual is sending funds to a family member or friend, no services would be exchanged. Instead, the recipient would be receiving the money as a gift, loan, or support.
Alternatively, if you’re looking to cash a cheque and want to know how long a cheque takes to clear, you can access our guide linked here for more information.
Examples of Recipients
In the world of banking, there is a wide range of recipient examples that can be provided. But, they all ultimately have the same meaning. As mentioned above, the meaning of recipients is the receiving party in a financial transaction.
With this in mind, let’s take a look at a few common examples of recipients in the world of banking and finance.
Individual Recipients
When an individual receives salary payments from their employer, they are considered a recipient of the salary payment.
Service Provider Recipients
When a service provider receives a payment from an individual or corporate client, they are the recipient of an incoming transfer.
Business Recipients
Any time a business receives payment from an individual or corporate customer for goods or services rendered, they are the recipient of a payment.
Businesses in the United Kingdom are also required to submit corporate tax returns with their UTR Number (Unique Taxpayer Number).
Family Recipients
When sending money to a family member to support their living expenses, as an allowance, or as a gift, the individual family member receiving the money is a recipient.
Real Estate Recipients
Anytime a landlord or property manager receives a payment from the tenant of a property, they are the recipient of a payment.
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Frequently Asked Questions
Below are two of the most common questions we receive from people looking into the meaning of recipients. If you have further questions you would like to ask our team, don’t hesitate to get in touch.
What Is an Example of a Recipient?
An example of a recipient in banking would be someone that a company is sending money to as payment for a service provider. This may include an employee, contractor, or consultant who has provided services to the company in exchange for payment. When the company sends payment to this individual, they would be the recipient of the transaction.
What is the Full Meaning of Recipient?
The full meaning of recipient in banking is the individual or entity that will be receiving a transaction. In other words, if you are in the process of completing a transaction form, the recipient is the person or business that you will be sending money to. To complete the recipient information, you will need to have their bank name, bank account information, legal name, and address. You will also need a routing number or SWIFT code, depending on whether you are sending a local or international transfer.
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