The Collaborative International Dictionary of English v.0.48:

Recoup \Re*coup"\, Recoupe \Re*coupe"\ (-k??p"), v. t. [F.
   recouper; pref. re- re- + couper to cut.]
   1. (Law) To keep back rightfully (a part), as if by cutting
      off, so as to diminish a sum due; to take off (a part)
      from damages; to deduct; as, where a landlord recouped the
      rent of premises from damages awarded to the plaintiff for
      eviction.
      [1913 Webster]

   2. To get an equivalent or compensation for; as, to recoup
      money lost at the gaming table; to recoup one's losses in
      the share market.
      [1913 Webster]

   3. To reimburse; to indemnify; -- often used reflexively and
      in the passive.
      [1913 Webster]

            Elizabeth had lost her venture; but if she was bold,
            she might recoup herself at Philip's cost. --Froude.
      [1913 Webster]

            Industry is sometimes recouped for a small price by
            extensive custom.                     --Duke of
                                                  Argyll.
      [1913 Webster]

WordNet (r) 3.0 (2006):

recoup
    v 1: reimburse or compensate (someone), as for a loss [syn:
         recoup, reimburse]
    2: regain or make up for; "recuperate one's losses" [syn:
       recover, recoup, recuperate]
    3: retain and refrain from disbursing; of payments; "My employer
       is withholding taxes" [syn: withhold, deduct, recoup]