A kickback is a secret payment made in return for a referral which resulted in a transaction or contract. It is the payment of something of value to an individual with the goal of persuading or influencing his or her decision or performance in a certain situation. A kickback may be in the form of cash or favors, and can be legal or illegal. A common form of a kickback, in the context of investing, is a commission rebate for investors who trade frequently.