rebate

REE-beyt /ˈriː.beɪt/
nounC1GMATCAT
FinancialFormal

A partial refund to someone who has paid too much money for tax, rent, or a utility, or as a sales incentive.

Unlike a discount, a rebate is usually processed after the full price has been paid.

The story behind the word. From the Old French 'rabatre', meaning 'to beat back'. Imagine the price is a physical object, and you are 'beating back' a portion of it into your own pocket.

Word relationships

  • refund: A refund is usually for a returned item; a rebate is a partial return of money for a kept item.
  • surcharge: An additional charge or tax added to the usual cost.

Commonly confused with

  • discount: A discount reduces the price upfront; a rebate returns money later.

Word family

  • rebated (adjective): Having had a portion of the cost returned.

Collocations

  • tax rebate
  • mail-in rebate
  • cash rebate

Example sentences

  • "The government offered a tax rebate to homeowners who installed solar panels." A government announcement regarding energy costs.
  • "The laptop costs $1,000, but there is a $200 mail-in rebate available." A consumer electronics promotion.

Memory hook

You pay, then they 'RE-pay' you a 'BATE' (bit). Cash back later.

When not to use

Don't use it for an immediate price drop at the register.

Fun facts

  • Many companies offer 'mail-in rebates' because they know a large percentage of customers will forget to mail the form.

Related words

redeem, incentive

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