What is the Difference Between Refund and Rebate?
🆚 Go to Comparative Table 🆚The main difference between a refund and a rebate lies in their purpose and how they are provided:
- Refund: A refund is the return of the entire amount paid by a customer on the purchase of a product or service. It is typically given when a customer is dissatisfied with the product or service, or when they return a defective or unwanted item. Refunds are usually provided in the same form as the original payment, such as cash, credit card, or electronic transfer.
- Rebate: A rebate is an amount paid by way of return on what has already been paid by the customer for a product or service. It is a form of sales promotion used to attract customers and encourage them to make a purchase. Rebates may be given in the form of coupons or gift vouchers, and they are often offered by either the manufacturer or the retailer. To receive a rebate, the customer usually needs to fill out a form and mail it to the provider, who will then send the rebate amount to the customer.
In summary, a refund is provided to satisfy a customer who is dissatisfied with their purchase, while a rebate is offered as an incentive to attract customers and encourage them to make a purchase.
Comparative Table: Refund vs Rebate
The main difference between a refund and a rebate lies in the purpose and timing of the money-back offer. Here's a table comparing the two:
| Refund | Rebate |
|---|---|
| A refund is a reimbursement of the full or partial amount paid by the customer for a product or service. | A rebate is a cashback or refund given to the customers against the purchase, which acts as an incentive to complete the transaction. |
| Refunds are typically offered when a customer returns a product or service, or when they pay an excess amount of tax. | Rebates are often used as a marketing strategy to attract more customers and facilitate future transactions. |
| Refunds are usually given before the actual sale. | Rebates are offered after the sale. |
In summary, a refund is a reimbursement of a paid amount, while a rebate is a cashback or refund given as an incentive after the purchase.
Read more:
- Rebate vs Discount
- Tax Return vs Tax Refund
- Subsidy vs Tax
- Discount Allowed vs Discount Received
- Profit vs Revenue
- Receipt vs Invoice
- Tax Offset vs Tax Deduction
- Debit vs Credit
- Reject vs Refuse
- Refurbished vs New
- Yield vs Return
- Refurbished vs Used
- Loan vs Borrow
- Invoice vs Tax Invoice
- Debit Balance vs Credit Balance
- Margin vs Markup
- Reward vs Incentive
- Tax vs Levy
- Sales vs Revenue