Samuel:

Why should it matter if there is Payee information? I would think this matters greatly. If the payment is suppose to made out to XYZ (Payee) do you want it made out to ABC (Primary vendor name)? I don't think I would want that to happen.

Can't the EFT just ignore this when we set the Vendor to EFT? By "this" I assume you mean that fact that there is a Payee. See my previous answer.

The real question is: Why can't EFT/Telpay respect the fact that a Payee name exists and send the payment to the Payee?