Is “Overpayment” a Scrabble word?

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Yes
OVERPAYMENT
Valid in at least one Scrabble dictionary

Valid in these dictionaries

SOWPODS / CSW
Scrabble UK & International
Valid
TWL / NWL
Scrabble North America
Valid
Large English Dictionary
General English word list
Valid

Meaning of Overpayment

noun
  1. 1.Payment exceeding the amount actually due.

    The employer sued to recover overpayment of wages.