Transfer payment

Transfer payment,

Definition of Transfer payment:

  1. A payment made or income received in which no goods or services are being paid for, such as a benefit payment or subsidy.

  2. 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.

How to use Transfer payment in a sentence?

  1. I had to wait until the transfer payment was complete before I could start spending all the money I had earned.
  2. Sometimes it is a lot easier to make a transfer payment then to bring a lot of cash to a business deal.
  3. It is possible for one party to request a transfer payment into their own pension arrangement over which they would have more control, such as deciding on the investments of the pension fund.
  4. Sometimes it is a lot easier to make a transfer payment then to bring a lot of cash to a business deal.

Meaning of Transfer payment & Transfer payment Definition