Ask the Editor
Question
"Rebate," "refund," and "reimburse"
Answer
These words are related in meaning and can be confusing.
They all refer to being paid back money that is owed.
Rebate means "an amount of money that is paid back to you because you have paid too much or as an incentive for buying something." Here are a couple of examples:
We hope to get a big tax rebate this year.
My new car came with a $1000 rebate.
Note that rebate is sometimes used as a verb meaning "to make or give a rebate."
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Refund as a verb simply means "to give back money that someone paid for something" -- and usually it means that what was purchased was defective or unacceptable. As a noun it means "money that is paid back."
The bank will refund your late fee.
The rental car agency ran out of cars, so I got a refund.
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Reimburse is very similar in meaning to refund. It means "to pay back an amount equal to what has been spent." It is usually used when you pay for something for someone else, when you borrow from someone else, or when you pay for something now but you will be paid back later (such as when you have expenses for business travel).
I keep my gas receipts so that I can be reimbursed by my company.
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If you simply borrow money from a friend, you would say:
"Let me pay you back."
Refund or reimburse would seem too formal.
You can read more articles in the archive.
FAQs
Rebates are an incentive program in which a supplier offers their customers a monetary reward for reaching designated purchasing goals. After the target specified in the agreement is met, customers can claim a percentage of the purchase price back for a better deal on their order.
What is a rebate from the government? ›
Tax rebates are different from tax refunds, as they are issued at any time during the year and are not related to deductions and credits claimed on a return. Some governments provide incentives in the form of rebates for the purchase of hybrid cars that reduce gasoline consumption.
What is rebates and refund? ›
Note that rebate is sometimes used as a verb meaning "to make or give a rebate." == Refund as a verb simply means "to give back money that someone paid for something" -- and usually it means that what was purchased was defective or unacceptable. As a noun it means "money that is paid back."
Are rebates good or bad? ›
Rebate marketing increases sales without forcing the seller to drop their price (in the form of a discount). Rebates have proven to convince customers to buy more products. And because rebates are conditional (meaning they have to claim it), not everyone does. This keeps margins high while boosting sales.
Will Social Security get a rebate check? ›
(The term Social Security beneficiaries includes Social Security Disability Insurance [SSDI] beneficiaries.) For eligible Social Security beneficiaries who filed a federal income tax return for 2018 or 2019, the rebate is to be automatically advanced to them in 2020 using the information from their last return.
Does rebate mean cash? ›
This refund can be in various forms, like cash, credit notes, or future discounts on products and services. The process typically involves customers paying full price for an item and later submitting proof of purchase along with other required details to claim their rebate from the seller.
Does rebate mean cash back? ›
A rebate is an upfront discount that gives you cash back after you make a purchase, and typically more quickly than a tax credit.
What is an example of a rebate? ›
For example, a rebate agreement states if a customer purchases 1,000 units of product, then they can claim a 5% rebate. Each unit is $100, so if the buyer purchases 1,000 units, the buyer can claim a rebate reward of $5,000.
Is a rebate free money? ›
A rebate is a financial incentive that manufacturers or service providers offer purchasers, typically used as a marketing strategy to boost sales and customer loyalty. Unlike immediate discounts at the point of sale, rebates are refunded after the purchase has been made.
Is rebate a cashback? ›
Cash rebate and cash back are terms loosely used by banks in their marketing promotion. While both essentially means the same thing, as in, 5% cash back/cash rebate means I spend $100 I get back $5, the backend mechanic is totally different. Cash back means to earn on what you spend irrespective of the purchase.
