Discount vs. Rebate — What's the Difference?
Edited by Tayyaba Rehman — By Fiza Rafique — Updated on October 13, 2023
A "discount" is a reduction in price given upfront at the time of purchase, while a "rebate" is a partial refund given after the purchase has been made. Both offer financial benefits, but their timing and methods differ.
Difference Between Discount and Rebate
Table of Contents
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Key Differences
A "discount" is a markdown on the original price of a product or service. Offered by retailers or manufacturers, discounts are applied instantly at the point of sale. They are designed to incentivize customers to make a purchase and are often used as promotional tools. For instance, seasonal sales, loyalty programs, or bulk purchase deals typically offer discounts.
Conversely, a "rebate" is a type of post-purchase incentive. After buying the product at its full price or a discounted rate, customers can claim a part of the amount back, usually by submitting proof of purchase. Rebates can be cash-based, or they might be in the form of store credits, gift cards, or other non-cash rewards. The process requires an extra step from the consumer's end to obtain the benefit.
While "discounts" are straightforward and immediate, offering the advantage of instant savings, "rebates" can sometimes be more substantial in value. However, the latter requires effort, and there's often a waiting period involved. Some consumers might overlook or forget to claim their rebates, leading to missed savings.
Another point of distinction is the purpose behind these incentives. "Discounts" are primarily aimed at increasing short-term sales and attracting customers, while "rebates" can be tools to boost brand loyalty, collect consumer data, or gently push a particular product.
Lastly, it's essential to note that while both "discounts" and "rebates" reduce the effective cost to the consumer, the approach and execution of these savings vary considerably, with discounts being immediate and rebates being deferred.
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Comparison Chart
Timing
Given upfront at the time of purchase.
Offered post-purchase.
Effort
No additional effort; instant savings.
Requires submission or claim to obtain.
Purpose
Boost sales, attract customers.
Enhance loyalty, gather data, promote specific products.
Benefit Realization
Immediate upon purchase.
Delayed; can be cash or non-cash benefits.
Application Method
Automatically applied or through codes/vouchers.
Through submission of proof of purchase.
Compare with Definitions
Discount
A reduction from the usual price.
I got a 20% discount on the jacket during the sale.
Rebate
A return of part of the original payment for a product or service.
If you buy the appliance now, there's a $50 mail-in rebate.
Discount
To sell or offer for sale at a reduced price
Discounting all merchandise.
Rebate
A cashback or non-cash incentive provided post-purchase.
By purchasing these tires, you qualify for a rebate card.
Discount
To reduce in quantity or value
Discount a price.
Rebate
A post-sale discount given upon fulfilling specific conditions.
After sending in my proof of purchase, I received my rebate check.
Discount
To deduct or subtract from a cost or price
Discounted 30 dollars off the price of the coat.
Rebate
A deduction from an amount to be paid or a return of part of an amount given in payment.
Discount
To determine the present value of (a future payment or series of payments).
Rebate
Variant of rabbet.
Discount
To price (a bond or other debt security) at a reduction to its face value, especially in place of a coupon.
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.
Discount
To disregard or doubt (something) as being exaggerated or untrustworthy
Discount a rumor.
Rebate
A joint so made.
Discount
To underestimate the significance or effectiveness of; minimize
I made sure in my report not to discount your accomplishments.
Rebate
To deduct or return (an amount) from a payment or bill.
Discount
To anticipate and make allowance for; reckon with in advance.
Rebate
To lessen; diminish.
Discount
A reduction from the full or standard amount of a price or value.
Rebate
To cut a rabbet in.
Discount
The amount by which the face value of a bond or other debt security exceeds its market price.
Rebate
To join by a rabbet.
Discount
Offering products or services for sale at low or reduced prices
A discount retailer.
A discount airline.
Rebate
To be joined by a rabbet.
Discount
Sold or offered for sale at a low or reduced price
Discount merchandise.
Rebate
A deduction from an amount that is paid; an abatement.
Discount
Reduced in quantity or value
Discount airfares.
Rebate
The return of part of an amount already paid.
Discount
Priced below face value, especially in place of a coupon
A discount bond.
Rebate
(photography) The edge of a roll of film, from which no image can be developed.
Discount
To deduct from an account, debt, charge, and the like.
Merchants sometimes discount five or six per cent for prompt payment of bills.
Rebate
A rectangular groove made to hold two pieces (of wood etc) together; a rabbet.
Discount
To lend money upon, deducting the discount or allowance for interest
The banks discount notes and bills of exchange
Rebate
A piece of wood hafted into a long stick, and serving to beat out mortar.
Discount
To take into consideration beforehand; to anticipate and form conclusions concerning (an event).
Rebate
An iron tool sharpened something like a chisel, and used for dressing and polishing wood.
Discount
To leave out of account or regard as unimportant.
They discounted his comments.
They discounted his suggestion.
They discounted his idea.
Rebate
A kind of hard freestone used in making pavements.
Discount
To lend, or make a practice of lending, money, abating the discount
Rebate
(transitive) To deduct or return an amount from a bill or payment
Discount
To believe, or act as though one believes, that one's own feelings are more important than the reality of a situation.
Rebate
(transitive) To diminish or lessen something
Discount
A reduction in price.
This store offers discounts on all its wares. That store specializes in discount wares, too.
Rebate
To beat to obtuseness; to deprive of keenness; to blunt; to turn back the point of, as a lance used for exercise.
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.
Rebate
(transitive) To cut a rebate (or rabbet) in something
Discount
The rate of interest charged in discounting.
Rebate
To abate; to withdraw.
Discount
(figurative) A lack or shortcoming.
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.
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.
Rebate
To deduct from; to make a discount from, as interest due, or customs duties.
Discount
Specializing in selling goods at reduced prices.
If you're looking for cheap clothes, there's a discount clothier around the corner.
Rebate
To return a portion of a sum paid, as a method of discounting of prices.
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.
Rebate
To abate; to withdraw.
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.
Rebate
Diminution.
Discount
To take into consideration beforehand; to anticipate and form conclusions concerning (an event).
Rebate
Deduction; abatement; as, a rebate of interest for immediate payment; a rebate of importation duties.
Discount
To leave out of account; to take no notice of.
Of the three opinions (I discount Brown's).
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.
Discount
To lend, or make a practice of lending, money, abating the discount; as, the discount for sixty or ninety days.
Rebate
A rectangular longitudinal recess or groove, cut in the corner or edge of any body; a rabbet. See Rabbet.
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.
Rebate
A piece of wood hafted into a long stick, and serving to beat out mortar.
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.
Rebate
An iron tool sharpened something like a chisel, and used for dressing and polishing wood.
Discount
The rate of interest charged in discounting.
Rebate
A kind of hard freestone used in making pavements.
Discount
The act of reducing the selling price of merchandise
Rebate
A refund of some fraction of the amount paid
Discount
Interest on an annual basis deducted in advance on a loan
Rebate
A rectangular groove made to hold two pieces together
Discount
A refund of some fraction of the amount paid
Rebate
Give a reduction in the price during a sale;
The store is rebating refrigerators this week
Discount
An amount or percentage deducted
Rebate
Cut a rebate in (timber or stone)
Discount
Bar from attention or consideration;
She dismissed his advances
Rebate
Join with a rebate;
Rebate the pieces of timber and stone
Discount
Give a reduction in price on;
I never discount these books-they sell like hot cakes
Rebate
A partial refund following a purchase.
The manufacturer offers a rebate for early adopters of their new gadget.
Discount
A deduction in cost as a promotional strategy.
Members receive a special discount on all purchases.
Rebate
A financial instrument to boost sales or loyalty.
The phone company's rebate program attracted many customers.
Discount
An allowance made for prompt payment or for bulk buying.
Wholesalers often give a discount for large orders.
Discount
A markdown to increase the attractiveness of a product or service.
The store provided a student discount on software products.
Discount
A financial incentive offered to consumers.
Using this coupon, you can get an additional discount at checkout.
Common Curiosities
What is a discount in simple terms?
A discount is an immediate reduction in the original price of a product or service.
Can a discount be offered post-purchase?
No, discounts are typically given at the time of purchase. Post-purchase offers are generally rebates.
What does it mean when a product comes with a rebate?
A rebate is a partial refund or return of money after a purchase, usually requiring the customer to submit a claim.
Can you get both a discount and a rebate on the same product?
Yes, some promotions may combine an immediate discount with a rebate offer.
How do discounts typically work?
Discounts are applied at the point of sale, instantly reducing the price a customer has to pay.
Why are rebates sometimes offered as store credit?
Store credits ensure the customer returns to make another purchase, thereby increasing the store's sales and customer loyalty.
How can a customer ensure they receive their rebate?
By carefully following the rebate instructions, providing necessary documentation, and submitting within the required timeframe.
Are rebates guaranteed?
Not always. Rebates often require the buyer to fulfill specific conditions, like submitting proof of purchase within a set timeframe.
Are discounts and rebates the same as sales?
Not exactly. While both offer reduced prices, sales are general price reductions, whereas discounts and rebates might be conditional or specific to individuals.
Why do companies offer rebates instead of discounts?
Companies use rebates to promote specific products, gather consumer data, or incentivize future purchases, and they bank on some consumers not claiming them.
How long does it typically take to receive a rebate?
It varies, but it can range from a few weeks to several months, depending on the offer's terms.
Do rebates always come in the form of cash or check?
No, rebates can also come as gift cards, store credits, or other non-cash rewards.
Are there any potential disadvantages to rebates?
Yes, they often require effort from the customer to claim, can have strict conditions, and there's a waiting period involved.
Which is more consumer-friendly: a discount or a rebate?
Generally, discounts are more consumer-friendly due to their immediate nature, but rebates can offer more significant savings if the conditions are met.
What's the main advantage of a discount?
The primary benefit is instant savings, allowing customers to pay less upfront.
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Written by
Fiza RafiqueFiza Rafique is a skilled content writer at AskDifference.com, where she meticulously refines and enhances written pieces. Drawing from her vast editorial expertise, Fiza ensures clarity, accuracy, and precision in every article. Passionate about language, she continually seeks to elevate the quality of content for readers worldwide.
Edited by
Tayyaba RehmanTayyaba Rehman is a distinguished writer, currently serving as a primary contributor to askdifference.com. As a researcher in semantics and etymology, Tayyaba's passion for the complexity of languages and their distinctions has found a perfect home on the platform. Tayyaba delves into the intricacies of language, distinguishing between commonly confused words and phrases, thereby providing clarity for readers worldwide.
