Meaning of “underpayment” in the English Dictionary

"underpayment" in Business English

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underpaymentnoun [ C or U ]

uk /ˈʌndəˌpeɪmənt/ us

COMMERCE the act of paying someone too little for the work they do, or an occasion when this happens:

Problems included underpayments to some employees.

the act of paying less than is necessary or less than the value of something, or an occasion when this happens:

She received a bill for underpayment of more than $1000.
Much of the surplus is the result of underpayments to past policyholders.

BANKING, FINANCE the act of making smaller payments than originally agreed when paying back a loan, or an occasion when this happens:

It is important to have a loan with flexible features, which allow overpayment and underpayment.
You will be charged interest and possibly surcharges on any underpayment.


(Definition of “underpayment” from the Cambridge Business English Dictionary © Cambridge University Press)