Discount vs. Rebate: Know the Difference
By Shumaila Saeed || Updated on December 25, 2023
Discount is a reduction in price at the point of sale. Rebate is a partial refund after purchase.
Key Differences
A discount is a reduction in the listed price of a product or service offered at the time of sale. It is immediately applied and reduces the sale price. In contrast, a rebate is a refund provided to the customer after the purchase. It often requires the customer to submit proof of purchase to receive the refund.
Shumaila Saeed
Dec 23, 2023
Discounts are used as a sales strategy to attract customers and encourage immediate purchases. They are straightforward and visible at the point of sale. Rebates, however, are often used as a marketing tool to promote products and encourage purchases without an immediate price reduction. They may also be used to collect customer information.
Shumaila Saeed
Dec 23, 2023
Discounts are clearly visible to customers at the point of purchase. The reduced price is displayed, making it easy for customers to understand the savings. Rebates, however, are not immediately visible in the product’s price and require the customer to take additional steps post-purchase to claim the refund.
Shumaila Saeed
Dec 23, 2023
Discounts are immediate and affect the purchase price at the time of sale. They are applicable during the transaction. Rebates take place after the sale and involve a waiting period for the customer to receive the refund, often requiring the submission of forms and proof of purchase.
Shumaila Saeed
Dec 23, 2023
Discounts generally require no extra effort from the consumer, as the reduced price is applied at the time of sale. Rebates require active participation from the consumer, including filling out forms and providing proof of purchase, which can sometimes discourage consumers from claiming them.
Shumaila Saeed
Dec 23, 2023
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Comparison Chart
Process
Instant reduction in price.
Requires submission of proof of purchase for a refund.
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Dec 23, 2023
Consumer Effort
Minimal; discount is automatic.
Higher; involves submitting forms and waiting for a refund.
Shumaila Saeed
Dec 23, 2023
Marketing Aim
Encourages immediate purchase by reducing sale price.
Promotes sales indirectly and may gather consumer information.
Shumaila Saeed
Dec 23, 2023
Price Visibility
Price reduction is visible at the point of purchase.
Not immediately visible; the full price is paid upfront.
Shumaila Saeed
Dec 23, 2023
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Discount and Rebate Definitions
Discount
A direct reduction in the retail price.
The store offered a 20% discount on all electronics.
Shumaila Saeed
Dec 15, 2023
Rebate
A partial refund to someone who has paid too much.
He received a $50 rebate after buying the new phone.
Shumaila Saeed
Dec 15, 2023
Discount
A deduction from the usual cost of something.
She received a discount for being a frequent customer.
Shumaila Saeed
Dec 15, 2023
Rebate
A financial incentive provided after a purchase.
Customers were promised a rebate for every referral they made.
Shumaila Saeed
Dec 15, 2023
Discount
A financial reduction given to students or seniors.
Students get a 10% discount at the museum.
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Dec 15, 2023
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Rebate
A deduction from an amount to be paid or a return of part of an amount given in payment.
Shumaila Saeed
Dec 13, 2023
Discount
A decrease in the face value of a ticket.
The theatre gives a discount to early bird bookings.
Shumaila Saeed
Dec 15, 2023
Discount
To sell or offer for sale at a reduced price
Discounting all merchandise.
Shumaila Saeed
Dec 13, 2023
Rebate
A cut or groove along or near the edge of a piece of wood that allows another piece to fit into it to form a joint.
Shumaila Saeed
Dec 13, 2023
Discount
To deduct or subtract from a cost or price
Discounted 30 dollars off the price of the coat.
Shumaila Saeed
Dec 13, 2023
Discount
To determine the present value of (a future payment or series of payments).
Shumaila Saeed
Dec 13, 2023
Discount
To price (a bond or other debt security) at a reduction to its face value, especially in place of a coupon.
Shumaila Saeed
Dec 13, 2023
Discount
To disregard or doubt (something) as being exaggerated or untrustworthy
Discount a rumor.
Shumaila Saeed
Dec 13, 2023
Discount
To underestimate the significance or effectiveness of; minimize
I made sure in my report not to discount your accomplishments.
Shumaila Saeed
Dec 13, 2023
Discount
The amount by which the face value of a bond or other debt security exceeds its market price.
Shumaila Saeed
Dec 13, 2023
Rebate
(photography) The edge of a roll of film, from which no image can be developed.
Shumaila Saeed
Dec 13, 2023
Discount
Offering products or services for sale at low or reduced prices
A discount retailer.
A discount airline.
Shumaila Saeed
Dec 13, 2023
Rebate
A rectangular groove made to hold two pieces (of wood etc) together; a rabbet.
Shumaila Saeed
Dec 13, 2023
Discount
Sold or offered for sale at a low or reduced price
Discount merchandise.
Shumaila Saeed
Dec 13, 2023
Rebate
A piece of wood hafted into a long stick, and serving to beat out mortar.
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Dec 13, 2023
Rebate
An iron tool sharpened something like a chisel, and used for dressing and polishing wood.
Shumaila Saeed
Dec 13, 2023
Discount
Priced below face value, especially in place of a coupon
A discount bond.
Shumaila Saeed
Dec 13, 2023
Discount
To deduct from an account, debt, charge, and the like.
Merchants sometimes discount five or six per cent for prompt payment of bills.
Shumaila Saeed
Dec 13, 2023
Discount
To lend money upon, deducting the discount or allowance for interest
The banks discount notes and bills of exchange
Shumaila Saeed
Dec 13, 2023
Discount
To take into consideration beforehand; to anticipate and form conclusions concerning (an event).
Shumaila Saeed
Dec 13, 2023
Rebate
To beat to obtuseness; to deprive of keenness; to blunt; to turn back the point of, as a lance used for exercise.
Shumaila Saeed
Dec 13, 2023
Discount
To leave out of account or regard as unimportant.
They discounted his comments.
They discounted his suggestion.
They discounted his idea.
Shumaila Saeed
Dec 13, 2023
Discount
To lend, or make a practice of lending, money, abating the discount
Shumaila Saeed
Dec 13, 2023
Discount
To believe, or act as though one believes, that one's own feelings are more important than the reality of a situation.
Shumaila Saeed
Dec 13, 2023
Rebate
To beat to obtuseness; to deprive of keenness; to blunt; to turn back the point of, as a lance used for exercise.
But doth rebate and blunt his natural edge.
Shumaila Saeed
Dec 13, 2023
Discount
A reduction in price.
This store offers discounts on all its wares. That store specializes in discount wares, too.
Shumaila Saeed
Dec 13, 2023
Rebate
To deduct from; to make a discount from, as interest due, or customs duties.
Shumaila Saeed
Dec 13, 2023
Discount
(finance) A deduction made for interest, in advancing money upon, or purchasing, a bill or note not due; payment in advance of interest upon money.
Shumaila Saeed
Dec 13, 2023
Rebate
To return a portion of a sum paid, as a method of discounting of prices.
Shumaila Saeed
Dec 13, 2023
Discount
The act of one who believes, or act as though they believe, that their own feelings are more important than the reality of a situation.
Shumaila Saeed
Dec 13, 2023
Rebate
Deduction; abatement; as, a rebate of interest for immediate payment; a rebate of importation duties.
Shumaila Saeed
Dec 13, 2023
Discount
Specializing in selling goods at reduced prices.
If you're looking for cheap clothes, there's a discount clothier around the corner.
Shumaila Saeed
Dec 13, 2023
Rebate
A portion of a sum paid, returned to the purchaser, as a method of discounting. The rebate is sometimes returned by the manufacturer, after the full price is paid to the retailer by the purchaser.
Shumaila Saeed
Dec 13, 2023
Discount
To deduct from an account, debt, charge, and the like; to make an abatement of; as, merchants sometimes discount five or six per cent for prompt payment of bills.
Shumaila Saeed
Dec 13, 2023
Rebate
A rectangular longitudinal recess or groove, cut in the corner or edge of any body; a rabbet. See Rabbet.
Shumaila Saeed
Dec 13, 2023
Discount
To lend money upon, deducting the discount or allowance for interest; as, the banks discount notes and bills of exchange.
Discount only unexceptionable paper.
Shumaila Saeed
Dec 13, 2023
Rebate
A piece of wood hafted into a long stick, and serving to beat out mortar.
Shumaila Saeed
Dec 13, 2023
Discount
To take into consideration beforehand; to anticipate and form conclusions concerning (an event).
Shumaila Saeed
Dec 13, 2023
Rebate
An iron tool sharpened something like a chisel, and used for dressing and polishing wood.
Shumaila Saeed
Dec 13, 2023
Discount
To leave out of account; to take no notice of.
Of the three opinions (I discount Brown's).
Shumaila Saeed
Dec 13, 2023
Discount
To lend, or make a practice of lending, money, abating the discount; as, the discount for sixty or ninety days.
Shumaila Saeed
Dec 13, 2023
Discount
A counting off or deduction made from a gross sum on any account whatever; an allowance upon an account, debt, demand, price asked, and the like; something taken or deducted.
Shumaila Saeed
Dec 13, 2023
Discount
A deduction made for interest, in advancing money upon, or purchasing, a bill or note not due; payment in advance of interest upon money.
Shumaila Saeed
Dec 13, 2023
Rebate
Give a reduction in the price during a sale;
The store is rebating refrigerators this week
Shumaila Saeed
Dec 13, 2023
Rebate
A return of part of the original payment for some service or merchandise.
The company offered a rebate on the purchase of energy-efficient appliances.
Shumaila Saeed
Dec 15, 2023
Rebate
A cashback offer as an incentive.
There was a $100 rebate on the new laptop.
Shumaila Saeed
Dec 15, 2023
Rebate
A discount given in the form of a refund.
The tax rebate was issued to all eligible citizens.
Shumaila Saeed
Dec 15, 2023
Discount
Give a reduction in price on;
I never discount these books-they sell like hot cakes
Shumaila Saeed
Dec 13, 2023
Discount
A markdown on damaged or out-of-season goods.
The shop provided a discount on slightly damaged furniture.
Shumaila Saeed
Dec 15, 2023
Repeatedly Asked Queries
Do rebates require customer action?
Yes, customers often need to submit forms and proofs of purchase.
Shumaila Saeed
Dec 23, 2023
Are discounts always visible?
Yes, discounts are usually clearly indicated on the price tag.
Shumaila Saeed
Dec 23, 2023
Can a discount be combined with a rebate?
Yes, some retailers offer both on the same product.
Shumaila Saeed
Dec 23, 2023
Are rebates time-sensitive?
Often, yes. Rebates usually have a specific claim period.
Shumaila Saeed
Dec 23, 2023
Are rebates always received by the customer?
Not always, as some customers may not follow through with the claim process.
Shumaila Saeed
Dec 23, 2023
How is a rebate different from a discount?
A rebate is a refund given after the purchase, unlike an immediate price reduction with a discount.
Shumaila Saeed
Dec 23, 2023
Is a rebate a marketing strategy?
Yes, rebates can be a strategy to encourage purchases and collect customer data.
Shumaila Saeed
Dec 23, 2023
Can everyone avail of a discount?
Generally, yes, unless it’s a special discount for specific groups like students or seniors.
Shumaila Saeed
Dec 23, 2023
Why do companies offer discounts?
To attract customers, boost sales, and clear inventory.
Shumaila Saeed
Dec 23, 2023
Are discounts offered for online purchases?
Yes, online stores frequently offer discounts.
Shumaila Saeed
Dec 23, 2023
Do discounts apply to services?
Yes, discounts can apply to both products and services.
Shumaila Saeed
Dec 23, 2023
Why might a rebate be preferred by a seller?
It maintains initial sales figures and can provide customer data.
Shumaila Saeed
Dec 23, 2023
Are rebates offered globally?
Rebate policies can vary by country and company.
Shumaila Saeed
Dec 23, 2023
Can a rebate be in forms other than cash?
Yes, rebates can sometimes be in the form of store credit or future purchase discounts.
Shumaila Saeed
Dec 23, 2023
How do customers benefit from discounts?
They pay less than the regular price, saving money.
Shumaila Saeed
Dec 23, 2023
Are rebates refundable in cash?
It depends on the terms of the rebate; some may be cash, while others are credit.
Shumaila Saeed
Dec 23, 2023
Is a rebate a form of discount?
It’s a type of indirect discount in the form of a post-purchase refund.
Shumaila Saeed
Dec 23, 2023
Do discounts affect product quality?
No, a discount typically does not reflect product quality, just a price reduction.
Shumaila Saeed
Dec 23, 2023
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About Author
Written by
Shumaila SaeedShumaila Saeed, an expert content creator with 6 years of experience, specializes in distilling complex topics into easily digestible comparisons, shining a light on the nuances that both inform and educate readers with clarity and accuracy.
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