Rebate refers to which of the following?

• A. The return of a portion of a payment
• B. A credit toward future services
• C. A cash-back incentive after purchase
• D. A seasonal discount

Answer: (A)

A rebate is the return of a portion of a payment. It represents a post-purchase price reduction where the buyer is refunded part of what was paid, typically after submitting proof of purchase and a claim. This distinguishes it from a credit toward future services, which would simply reduce future charges on the account, and from a seasonal discount, which is a price reduction available at the time of purchase or during a promo period. Some cash-back offers resemble rebates, but the defining idea is getting back part of the money already paid after the purchase.