settlement of a charge for goods or services or satisfaction of liabilities with similar or identical mediums of exchange and value (e.g., money for money, goods for goods, and services for services). It also connotes a transaction where one medium of exchange is satisfied with another. For example, a carpenter fixes a lawyer's roof. The value of the work is $200 which is paid with one hour's worth of legal services.
payment for goods and services made in the form of other goods and services rather than cash or other forms of money. Payment in kind is different from barter because the payer gets the same goods and services in return, not other goods and services of equivalent value, as is the case in barter.
payment for goods and services made in the form of other goods and services, not cash or other forms of money. Usually, payment in kind is made when the payee returns with the same kind of good or service. For example, if someone's tire blows out, the payee will buy another tire to replace the first one. In the securities world, payment-in-kind securities pay bondholders in more bonds instead of cash interest. Payment in kind is different from barter because the payer gets the same goods and services in return, not other goods or services of equivalent value, as is the case in barter.
