transfer payment

  

Definition

One-way payment of money for which no money, good, or service is received in exchange. Governments use such payments as means of income redistribution by giving out money under social welfare programs such as social security, old age or disability pensions, student grants, unemployment compensation, etc. Subsidies paid to exporters, farmers, manufacturers, however, are not considered transfer payments. Transfer payments are excluded in computing gross national product.

Use transfer payment in a sentence

  • Sometimes it is a lot easier to make a transfer payment then to bring a lot of cash to a business deal.

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  • Sometimes it is a lot easier to make a transfer payment then to bring a lot of cash to a business deal.

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  • I had to wait until the transfer payment was complete before I could start spending all the money I had earned.

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