Legal Definitions - direct payment

Definition: Direct payment refers to a payment made directly to the payee without using an intermediary. It is an absolute and unconditional payment on the amount, due date, and payee.

Example: A child-support payment made directly to the obligee parent instead of going through the court is an example of direct payment. Another example is when a customer pays a vendor directly for goods or services without involving a third party.

These examples illustrate that direct payment is a straightforward and immediate transaction between the payer and payee, without any intermediaries involved. It is a secure and efficient way of making payments, especially for recurring payments like rent, utilities, and subscriptions.