Rebate

REE-bayt /ˈriːbeɪt/
nounverbB2
GeneralBusiness

(noun) A partial refund to someone who has paid too much money for tax, rent, or a utility. (verb) Pay back a portion of (a price or tax).

A 'rebate' is typically a return of a portion of a payment, often offered as an incentive or due to an overpayment. It's a form of financial relief, distinct from a discount which is applied at the point of sale.

The story behind the word. The word 'rebate' comes from the Old French verb 'rebattre,' meaning 'to beat back' or 'to repel.' Over time, it gained the sense of 'to reduce' or 'to deduct.' Imagine a portion of the payment being 'beaten back' or returned to the payer, reducing the overall cost. This historical sense of reduction is key to its financial meaning.

Word relationships

  • Refund: A return of money, usually for an unsatisfactory product or service, or an overpayment.
  • Reimbursement: Repayment of money spent or lost.
  • Discount: A deduction from the usual cost of something, typically given for prompt or bulk payment or to a special category of buyer.
  • Surcharge: An additional charge or payment.
  • Penalty: A punishment imposed for breaking a law, rule, or contract.

Commonly confused with

  • Discount: A 'rebate' is money returned after purchase, while a 'discount' is money reduced at purchase.

Collocations

  • cash rebate
  • tax rebate
  • energy rebate
  • offer a rebate
  • claim a rebate

Example sentences

  • "Many car manufacturers offer a cash rebate to buyers during promotional periods." Consumer incentives.
  • "Homeowners who install energy-efficient appliances may be eligible for a government rebate." Government programs.

Memory hook

A REBATE is money 'RE-turned' to you, like a 'RE-fund' or 'RE-duction'. REBATE = RE-turn

When not to use

Do not confuse 'rebate' with 'discount.' A discount is applied before payment, reducing the initial price. A rebate is a partial refund after the full payment has been made.

Fun facts

  • Early rebates were often given for prompt payment or as a reduction in interest on a loan.

Related words

Deduction, Exempt

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