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If I want to refer to a sum of money that someone can get to make up for travel expenses, do I refer to it as "reimbursement for travel expenses" or as "compensation for travel expenses"? When I google the two, the version with "reimbursement" gets almost four times as many hits as the one with "compensation", but on Google Ngrams, the version with "compensation" is the only one to get any hits at all. A bit confusing, in other words!

Checking my dictionaries, I get the impression that the two differ a bit in meaning, so that "reimbursement" refers to a paying back of the amount of money that was spent, whereas "compensation" would perhaps rather mean that the person is compensated, but not necessarily with the amount that was actually spent, but rather at a set rate – is this intuition correct? So that the the choice between the two depends not on frequency, but on meaning?

Addition to the original post:

The situation I'm after is one where a person can apply for money to cover travel exepenses, and based on the exact kind of situation, the person gets a certain predetermined amount, according to a tariff, with no receipts or the like involved at all, so it seems "reimbursement" wouldn't really fit after all.

Perhaps "travel allowance" would be a better fit?

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    Maybe you didn't get many results because we say "reimbursement of travel expenses". Jan 28 at 9:29
  • @KateBunting Oh!! Ok, yes – that's probably it then! Thank you! Prepositions are tricky...
    – Gerda
    Jan 29 at 18:04
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    In response to your amendment - Yes, you only get a reimbursement when you have already spent the money and can claim it back afterwards. The literal meaning is something like 'putting back in the purse'. Jan 30 at 9:12

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I agree with the answers about the differences between "reimbursement" and "compensation." The latter word does have the connotation of paying for something and so would fit generically for many arrangements, but reimbursement has the specific meaning of being paid back a sum of money already expended.

The word frequently used in the U.S. for the kind of situation that you are discussing is a "travel allowance." It is not tied to specific reciepts, but rather to certain activities, such as being away from home for a certain number of days or driving in your own car a certain distance.

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  • I see that you posted this yesterday – I can't imagine why I didn't see it then – if I had, I wouldn't have edited my answer to ask about something you'd already suggested! My appologies!
    – Gerda
    Jan 30 at 19:16
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    No problem. It is also sometimes called a “per diem” if it is to cover food or lodging. My wife once worked for the U.S. government and had to go to Washington frequently. The “per diem” did not cover staying at the Ritz Carleton. Jan 30 at 21:30
  • Haha - can't imagine why! Stingy bastards ;)
    – Gerda
    Jan 30 at 22:34
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I would say that "reimbursement" is the standard word. It means that money is returned to you based on the receipts that you show as proof of your travel expenses.

"Compensation" within that context might potentially be used if your salary were to include a fixed, regular allowance for travel expenses.

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  • Thank you! Based on your answer, I'm not sure "reimbursement" would fit my context though, because the situation I'm after is one where a person can apply for money to cover travel exepenses, and based on the exact kind of situation, the person gets a certain predetermined amount, according to a tariff. No receipts are involved at all. Would you say "compensation" would be more suitable after all then, considering this?
    – Gerda
    Jan 29 at 18:08
  • I've edited my OP now – what do you think about "travel allowance"?
    – Gerda
    Jan 29 at 18:27
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To me, reimbursement seems to be the better term for this use. In my mind, the word compensation refers to payment that is intended to be in exchange for the work done or the goods sold. On the other hand, reimbursement has a much similar meaning to repayment, or returning the amount of money spent on travel.

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  • Thank you! Right, I see – problem is just that sense of 'repayment', which is not at all the case in the kind of context I'm after... Like I said to christianjackson, the situation I'm after is one where a person can apply for money to cover travel exepenses, and based on the exact kind of situation, the person gets a certain predetermined amount, according to a tariff, with no receipts or the like involved at all, so it seems "reimbursement" wouldn't really fit after all. Question is, then, what to use instead..?
    – Gerda
    Jan 29 at 18:12
  • I've edited my OP now – what do you think about "travel allowance"?
    – Gerda
    Jan 29 at 18:28
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I would certainly not use "compensation" in this context, because to me "compensation" means "Amends or recompense for loss or damage" (OED, sense 2.b)

I am aware that in American English it is also used for "Salary or wages, esp. of a public servant; payment for services rendered" (OED, sense 2.d, marked "US"); but I see from other answers that people would still not extend it to this context.

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