Difference Between Discount and Rebate


Main Difference

The difference between ‘Discount’ and ‘rebate’ is that when it comes to discount, it means a reduction of the price. Whereas when it comes to the rebate, it may be defined as refunding a part of the paid amount. So particularly the difference is between time and type of concession.

Discount vs Rebate

Discount is the concession in the price being paid by the customer. It is done at the time of payment and is favour by the seller. When it comes to the rebate, it is the price given by the seller to the rebate in case if he pays more for the thing or else, it may be a discount that is given after the payment. It means that the complete payment is made and the price is returned afterwards. Both terms are associated with the depletion allowance. A common example from daily life may be taken as when we do make a bill of ‘four hundred and five dollars’ the shopkeeper if rounds of the money to ‘four hundred’ it would be discount for the customer. Whereas if the shopkeeper gives a substitute of candy or any other thing after you paid him ‘four hundred and ten’ instead of four ‘hundred and five’, for the extra five you paid, it would be a rebate.


Comparison Chart

Discount is the concession in the original amount of something.Rebate is refunding of the amount of something paid
With respect to time
Discount is done at the time of paymentRebate is given after the approval of manufacturers or after a certain period of payment
With respect to the mode of payment
Discount is basically deduction made in the payment at the spot on the basis of the market and customer’s demandRebate is free from all the sort of public pressure but is a favour from the seller to the customer and paid after a certain time period
Discount is common among the people and could be applicable to any sort of marketingRebate is a less common term among people and is applicable under certain terms and conditions only
Favoured by people
As people prefer paying less at the time, so it is more popular and preferred by the people.Though rebate also means refunding of the paid amount but it is not preferred by the people. Because paying less at the time is more convenient.

What is Discount?

Discount is the concession in the price at the time of payment. It varies and usually is offered by the sellers or people insist upon for it. It is a common term that is understood and spoken by people very often. The word ‘discount’ originated from Latin word ‘dis-computare’ and revolutionized over the period of time into a discount. People usually love to get compensated amount to pay hence the term in the sense of marketing is used very commonly and widely. There are several conditions for a discount. The people usually themselves insist or urge for a discount, and sometimes the seller uses the term for the publicity and promotion of their market or products. The term is usually seen in terms of percentage which is applied to the total actual applied term of the object. People get attracted to such offers, and hence the marketing succeeds. But it never gives a loss to the seller because the amount of discount used is usually estimated and an extra charged amount which may lessen the profit but not kill it entirely.

What is Rebate?

Rebate is refunding of the price paid. It is decided by the manufacturers or is most commonly applied for the tax. When someone pays extra tax, the government rebates the amount after some time. The term is less popular among people because it sounds easy for them to pay less instead of paying more and then get refunded. A market is a place that has people from all the class. The economy difference leads to the choice difference between the discount and the rebate. People from upper class commonly don’t bother either of these but if it comes to preference its rebate rather than discount while middle and especially the lower class tend to pay less according to their affordability at the time. Rebate is most common on electrical appliances where the seller contacts the manufacturer and the price is returned to the customer in certain cases. For example, when it comes to buying any electrical appliance it includes tax and other additional amounts, so manufacturer refunds a certain amount in order for the ease and maybe advertisement or attraction of the brand. The rebate could either be in terms of money or anything of equivalent price.

Key Differences

  1. To compensate the amount at the moment is known as discount whereas to compensate for payment is known as a rebate.
  2. Besides that, both terms are related to the depletion allowance, yet they differ according to the time of payment and mode of payment.
  3. Discount is done in the form of money at the time of payment while rebate may be done via PayPal or any other service.
  4. Discount is directly related to the profit margin of the seller while rebate is related to the manufacturer’s cost.
  5. Discount is usually done in order for the publicity of the brand or market whereas rebates are usually done for the return of extra payment made by the customer.


Though terms are very similar to each other yet there is the difference in all the aspects either its mode of payment, the reason for payment or time of payment. Discount being on time and money effortlessly gains more attraction people whereas, rebate being paid later and maybe in sort of money transfer or any other way is less appreciated by the people.