The phrase “loss payee” refers to the recipient of funds from a payment transfer initiated by another party.

Explanation:

• Loss payee: The entity that receives funds in a payment transfer.
• Payee: The party who initiates a payment transfer and is the sender of funds.
• Loss: In this context, “loss payee” is used when the payment transfer results in a loss to the payee, typically due to a discrepancy between the expected and actual amount received.

Example:

“The customer was a loss payee in the credit card fraud case.”

In this example, the customer received funds that were fraudulent, resulting in a loss.