Payment: meaning, definitions and examples

Used in general to refer to the act of paying money for goods or services.

• She made the payment online; The payment was due last month

Used when referring to the resolution of a dispute by a legal or financial agreement.

• They reached a settlement out of court; The settlement included a substantial compensation package

Used when referring to sending money, usually to someone at a distance, such as sending money abroad.

• He sent the remittance to his family overseas; The remittance process can take several days

Used when compensating someone for expenses they have incurred.

• She received reimbursement for her travel expenses; The company offers reimbursement for business-related costs

General term used for any transfer of money from one party to another, often in the context of bills, services or products.

• The payment for the electricity bill is due next week
• He made the payment for the online order using his credit card

Usually refers to money given to someone in return for their services or as a reimbursement for loss, damage or injury. Often used in legal or employment contexts.

• The company offered compensation for the injury he suffered at work
• She received compensation for the delay in delivery

Refers to a fixed regular payment, typically monthly or biweekly, made by an employer to an employee for professional or office work.

• She gets a monthly salary from her job at the marketing firm
• His salary is enough to cover his living expenses

Specifically refers to a payment made to an employee based on the number of hours worked or quantity of work done, often used for manual or hourly work.

• She earns a minimum wage working at the local grocery store
• His weekly wage is $400