📖 Accounting Terminology · 2 min read

Debtor vs. Creditor in Payment Files: Key Differences

⚡ Quick Summary & Key Takeaway

Every financial transaction involves two counterparties: the Debtor and the Creditor. Getting these roles straight is crucial when preparing bulk payment batches for bank processing.

Debtor (The Paying Party)

The Debtor is the entity that owes money and initiates the transfer. When using Stack2Pay to pay bills, your company is the Debtor whose bank account is debited.

Creditor (The Receiving Party)

The Creditor is the vendor, supplier, or contractor who is owed money and receives the funds into their account.

What is a Creditor Payment File?

A creditor payment file (vendor payout batch) aggregates all scheduled supplier disbursements into a single XML instruction for your online banking.

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