Definition
Kickback Vendor refers to a scheme in which a vendor provides secret payments or benefits to influence purchasing decisions.
Context
Vendor kickbacks typically occur in procurement processes and are closely linked to corruption, conflicts of interest, and weak internal controls. They often arise in environments lacking proper segregation of duties and oversight of vendor relationships.
Meaning
Vendor kickbacks distort procurement decisions, lead to inflated costs and reduced quality, and represent a significant fraud and compliance risk.
Example
A supplier pays undisclosed commissions to an employee to secure contracts.
Sources
Suggested citation
wirtschaftsforensik.ch Editorial Team: "Kickback Vendor", in: Glossary, wirtschaftsforensik.ch, https://wirtschaftsforensik.ch/glossar/kickback-vendor/, accessed April 18, 2026.