Reimbursement is a term used to describe the process of providing financial COMPENSATION for goods or services. It can take the form of a COMPENSATION, REFUND, REBATE, FEE, PAY, or PAYMENT. COMPENSATION is the most comprehensive form of reimbursement, as it involves providing a sum of money to cover the cost of goods or services. Refunds and rebates are similar in that they involve returning money to the customer, but refunds are typically given when a customer returns an item, while rebates are given as a discount on the purchase price. Fees are usually a one-time PAYMENT for a specific service, while PAY and PAYMENT are more general terms that can refer to any type of financial transaction.