Kickback (finance)

A kickback is a payment that partially offsets a larger payment in another direction. The term often connotes a secret or illegal payment, such as a form of negotiated bribery in which a commission is secretly paid to the person who arranges a deal. Generally speaking, the remuneration (money, goods, or services handed over) for a kickback is negotiated ahead of time. The kickback varies from other kinds of bribes in that there is implied collusion between agents of the two parties, rather than one party extorting the bribe from the other. The purpose of the kickback is usually to encourage the other party to cooperate in the scheme.

The term "kickback" comes from colloquial English language, and describes the way a recipient of illegal gain "kicks back" a portion of it to another person for that person's assistance in obtaining it.