---
title: "What is Know your payee (KYP)? Definition"
description: "Know your payee is the practice of confirming who you are paying before you pay them: that the payee is a legitimate entity, that the bank account..."
url: https://realpayee.com/glossary/know-your-payee
canonical: https://realpayee.com/glossary/know-your-payee
date_published: 2026-10-05
date_modified: 2026-10-05
author: RealPayee
---

# Know your payee (KYP)

> Know your payee is the practice of confirming who you are paying before you pay them: that the payee is a legitimate entity, that the bank account belongs to it, and that any change to its payment details was genuinely requested by it. It is the payments counterpart of know-your-customer (KYC).

_Published 2026-10-05 · Updated 2026-10-05 · By RealPayee_

## Related terms

- [Vendor verification](https://realpayee.com/glossary/vendor-verification): Vendor verification is confirming that a supplier is legitimate and that the bank account you pay belongs to it - at onboarding and whenever its payment details change.
- [Payee name check (account name matching)](https://realpayee.com/glossary/payee-name-check): A payee name check compares the name on the receiving bank account with the payee name you intend to pay, before the payment is sent.
- [Vendor master file](https://realpayee.com/glossary/vendor-master-file): The vendor master file is the record in your ERP or AP system holding each supplier's legal name, tax ID, addresses, contacts and bank details.

## Why it matters for finance teams

Most payment fraud reaches AP as a request that looks legitimate. Understanding know your payee helps your team spot it and apply the right control: verify bank-detail changes and large payment requests with the real person, out-of-band, before money moves. Our free [bank-change policy template](https://realpayee.com/templates/vendor-bank-change-policy) puts that into a written rule.

Full glossary: https://realpayee.com/glossary · All terms as JSON Lines: https://realpayee.com/feeds/glossary.jsonl

## Related

- [Vendor verification: how to verify vendor bank details before you pay](https://realpayee.com/vendor-verification) - A practical guide to vendor verification for finance teams: how to confirm vendor bank-detail changes, run callbacks, and prevent vendor impersonation fraud. (markdown: https://realpayee.com/vendor-verification.md)
- [Eftsure vs RealPayee](https://realpayee.com/alternatives/eftsure) - Eftsure vs RealPayee: payee verification with a $1M guarantee versus verifying the real person behind each bank change and high-value payment. Strengths, gaps and when to choose which. (markdown: https://realpayee.com/alternatives/eftsure.md)
- [Best vendor verification software (2026)](https://realpayee.com/best-vendor-verification-software) - The best vendor verification software in 2026, compared honestly: RealPayee, Trustpair, Eftsure, PaymentWorks, Tipalti, Medius, BILL, Ramp, plus identity tools Persona and Pindrop. What each checks and who it fits. (markdown: https://realpayee.com/best-vendor-verification-software.md)

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