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Finance & Banking vocabulary · Payments & Cards

Beneficiary

Meaning in finance & banking, with examples

/ˌbenɪˈfɪʃəri/nounCore term

In finance & banking, beneficiary means: The person or company that receives money from a payment, a letter of credit, an insurance policy or a will.

In Turkish: alıcı, lehtar, hak sahibi

How it is used

Used in money transfers, trade finance and insurance. In a transfer form you enter the beneficiary name, beneficiary bank and IBAN. Apps let customers add or save a beneficiary so that later payments are faster. The sender is the 'remitter' or 'payer'.

Example sentences

  1. Please check the beneficiary's IBAN carefully before you confirm the transfer.

  2. The exporter is the beneficiary of the letter of credit.

Common collocations

  • beneficiary name
  • beneficiary bank
  • add a beneficiary
  • beneficiary account
  • wire transferAn electronic transfer of money from one bank account to another, often between different banks or countries.
  • IBANShort for International Bank Account Number: a standard code of up to 34 letters and digits that identifies a bank account for domestic and cross-border transfers.
  • SWIFT codeA code of 8 or 11 letters and numbers that identifies a specific bank, and sometimes a branch, in international payments. It is also called a BIC.
  • letter of creditA bank's written promise to pay the seller in an international sale, provided that the seller presents the required documents, such as the bill of lading and invoice.
  • beneficial ownerThe real person who ultimately owns or controls a company or account, even if it is held in someone else's name or through other companies.

This word in other fields

The same English word can have a different meaning in another field:

More terms: Payments & Cards

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This page explains English vocabulary for learners. It is not financial advice.