reimbursement
REE-im-BURSS-munt
/ˌriːɪmˈbɜːrsmənt/
The action of repaying a person who has spent or lost money on behalf of an organization.
Reimbursement is always a 'pay-back.' You spend your own money first, show a receipt, and the company pays you back.
The story behind the word. This word has a very literal origin. It comes from the French 're-' (back) and 'bourse' (purse). To reimburse someone is quite literally to put money back into their purse after they have emptied it for you.
Word relationships
- repayment: Repayment is general; reimbursement is specifically for expenses incurred for someone else.
- indemnity: Indemnity is a legal term for protection against loss, often involving reimbursement.
Commonly confused with
- allowance: Reimbursement is after the fact; allowance is before.
Word family
- reimburse (verb): To pay back money spent.
- reimbursable (adjective): Eligible to be paid back.
Collocations
- expense reimbursement
- tuition reimbursement
- full reimbursement
- seek reimbursement
Example sentences
- "The reimbursement of expenses shall be made within thirty days of submitting a valid receipt." A standard clause in a business contract.
- "The insurance company processed the reimbursement for the surgery within a week." Discussing medical costs.
Memory hook
RE-IM-BURSE: RE (Back) IM (In) BURSE (Purse). Put the money back in the purse! Back in the purse.
When not to use
Do not use 'reimbursement' if the company gives you the money upfront (that's an 'allowance').
Fun facts
- The word 'bourse' (purse) is also the origin of the French word for the Stock Exchange.
- Tuition reimbursement is a popular perk where companies pay for their employees' college degrees.
Explore more words
Indemnify, repay, expense, disburse, indemnification, compensate
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