What context can I use each word in?
Learn when and how to use these words with these examples!
payment
Example
I made the payment for my online order using my credit card. [payment: noun]
Example
The payment for the service was due at the end of the month. [payment: noun]
compensation
Example
The company offered compensation to the customers affected by the product recall. [compensation: noun]
Example
The employee received compensation for working overtime. [compensation: noun]
Example
The positive feedback compensated for the negative criticism. [compensated: verb]
Good things to know
Which word is more common?
Payment is more commonly used than compensation in everyday language, as it covers a wider range of contexts and is more neutral in connotation. Compensation is more specific and often used in legal or employment contexts.
What’s the difference in the tone of formality between payment and compensation?
Payment is more versatile and can be used in both formal and informal contexts, while compensation is more formal and typically used in legal or employment settings.
