Who is referred to as the drawer in a financial transaction?

In a financial transaction, the term "drawer" specifically refers to the individual who signs a check or draft, authorizing the payment from their bank account. This act of signing indicates that the drawer has the funds available and intends to transfer them to the payee, the person receiving the payment. The drawer is an essential party in the process as they initiate the payment mechanism by providing their signature on the financial instrument, thereby creating a legal obligation for the bank to disperse the funds upon presentation of the check or draft.

The other roles mentioned, such as the recipient of payment, the individual writing an invoice, or the person processing payments, involve different aspects of financial transactions but do not define the role of a drawer. The drawer is specifically concerned with the creation and authorization of the payment via a signed instrument, highlighting their critical position in the transaction process.