Financial compensation refers to the act of providing a person with money or other things of economic value in exchange for their goods, labor, or to provide for the costs of injuries that they have incurred. The aim of financial compensation is the preservation of relationships between those engaged in economic exchange.

Kinds of financial compensation include:

Financial compensation is often provided after service delivery failure in order to regain customer trust. An associated response is to offer an apology that communicates the transgressor feels remorse.

Financial compensation may be offered as an incentive. Some offers are too good to refuse. They may become an undue inducement in which they distort people's judgment, contravene their interests and thereby cause harm.

Financial compensation may be imposed by a judge, before a court, to a victim.