What does rebate mean?
A rebate is a discount returned to a buyer, often after a qualifying purchase has been made. It may be provided by a manufacturer, retailer, government, or other organization, and it can take the form of cash, a credit, or a reduction in what the customer ultimately pays. The word is especially common in discussions of consumer electronics, automobiles, appliances, taxes, and government assistance programs. In business contexts, to rebate means to return part of the purchase price or credit a dealer or customer. Although rebate and discount are sometimes used interchangeably, a rebate more clearly suggests money or credit coming back after the transaction. The distinction matters when comparing a discounted selling price with a later rebate. Rebate also has a somewhat promotional or financial tone, and the word can imply either a genuine reduction for the buyer or a deduction benefiting the seller.
A sum returned to a buyer as a reduction in the amount paid, typically by a manufacturer, retailer, or government.
"The government increased the tax rebate for energy-efficient vehicles."
The plural is rebates. A rebate is often credited after purchase, although some programs provide it immediately.
To return a discount or credit part of the price paid to a buyer or dealer.
"The manufacturer rebates part of the purchase price to participating retailers."
This use is common in commercial, retail, and promotional contexts.
The plural rebates refers to multiple discounts, credits, or amounts returned to buyers or dealers.
"Several dealers offered rebates on electric vehicles."
Rebate comes from French for "beat back"—money sent back to the buyer.
Reviewed by Deb Chak, Editor. AI-assisted content curated by RJS Tech Solutions LLP.
Where does rebate come from?
Rebate comes from French rebattre, a verb based on re- and battre, "to beat," and referring originally to beating or deducting something back. The English noun developed in the sense of a deduction or discount, while the verb came to mean returning a discount or credit. Batter, battle, battery, and debate ultimately trace to related forms of Latin battere, "to beat."
Related word forms
How rebate is actually used
In modern usage, rebate most often names a commercial, tax, or government discount. It is often specifically associated with money returned after a purchase, rather than with a reduction in the advertised price.
Easily confused with rebate
A rebate is generally returned or credited after a purchase, whereas a discount reduces the price charged at the outset.
A refund generally returns money for goods or services not provided or accepted, while a rebate reduces the net cost of a purchase without necessarily implying a return of the goods.