Business Glossary

1. abatement .
2. amount paid back or credit allowed because of an overcollection or the return of an object sold, also called refund.
3. unearned interest refunded to borrower if the loan is paid off prior to maturity.
4. payment to a customer upon completion of a purchase as an inducement or sales promotion tactic.

1. in lending, unearned interest refunded to a borrower if the loan is paid off before maturity.
2. in consumer marketing, payment made to a consumer after a purchase is completed, to induce purchase of a product. For instance, a customer who buys a television set for $500 may be entitled to a rebate of $50, which is received after sending a proof of purchase and a rebate form to the manufacturer. See also Rule of the 78s .

1. unearned interest returned to the borrower when a loan is paid off early. See also Rule of the 78's .
2. pro-rated share of deposit insurance premium returned to a federally insured bank or savings association when the sum of inurance premiums paid exceeds payouts to depositors from an insurance fund.
3. portion of net sales returned to cardholders by a bank card plan, based on card usage. A plan with a 2% rebate nets the cardholder $2 for every $100 in sales.
4. reduction in a credit card merchant's merchant discount rate for credit card transactions above a certain amount.

In general: refund of a payment.
Media: refund given to an advertiser by a media vehicle. A rebate is usually given when the advertiser places more advertisements than originally contracted, therefore earning a larger discount. For example, the XYZ Company contracts to place a full-page ad in a periodical every week for three weeks, earning a 10% media discount. Later, the company decides to extend the campaign to six weeks, which would normally earn a 15% discount. The periodical would issue a 5% rebate to the XYZ Company.
Sales promotion: refund given to a consumer for sending in proof-of-purchase after a sale.

1. a refund resulting from a purchase or tax.
   Example: To encourage sales of the condominium project, the developer offered a $2,500 rebate to each purchaser.

2. a kickback of a charge, often illegal if done without knowledge of all parties.
   Example: The broker accepted a $50 rebate from the insurer each time he sold a home carrying a homeowner's warranty .

1. refund resulting from a purchase or tax.
2. kickback of a charge, often illegal if done without knowledge of all parties.