account payee only
Definition
A instruction printed on a UK cheque that restricts it from being transferred or endorsed to anyone else, it can only be deposited into the named recipient’s bank account.
Example
Example 1:
A Lagos company issues a cheque to a supplier marked “A/C Payee Only”, the supplier cannot endorse it to a third party or cash it at a counter; it must go directly into the supplier’s own bank account, protecting against fraud or misuse.
Example 2:
A Manchester landlord receives a rent cheque from his tenant marked “Account Payee Only”, he cannot sign it over to his builder as payment for renovation work; the cheque must be paid exclusively into his own bank account as the named payee.