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Transfer Payment

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Dictionary Says

Definition of 'Transfer Payment'

1. In the United States, a payment made to individuals by the federal government through various social benefit programs.

2. In Canada, a payment made to the provinces and territories by the federal government.
Investopedia Says

Investopedia explains 'Transfer Payment'

1. Transfer payments are made by the U.S. Federal Government to individuals through programs such as Social Security, Welfare and Veteran's benefits.

2. Transfer payments are made by the Canadian Federal Government to the provinces and territories through the Equalization Program, Canada Health Transfer and Canada Social Transfer.

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