Top Definition
A term used originally by carnival workers to describe arbitrary fees or charges designed to take away money or wages a person should be entitled to keep or receive.
Person 1: "Even with the late charge, I should have my payments caught up next month."

Person 2: "You won't pay just a late charge - after they pencil beat you for administrative and other charges, you'll be paying a lot more."

or

I'd rather just clean my own uniforms, rather than have the company pencil beat me for cleaning charges on every paycheck.
by Aeryn4 November 22, 2009

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