Refund vs Rebate - What's the difference?

In transitive terms the difference between refund and rebate

is that refund is to return (money) to (someone); to reimburse while rebate is to cut a rebate (or rabbet) in something.

(en verb)

To return (money) to (someone); to reimburse.

A governor, that had pillaged the people, was sentenced to refund what he had wrongfully taken. — L'Estrange.

If you find this computer for sale anywhere at a lower price, we'll refund you the difference.

(obsolete) To supply again with funds.

to refund a railroad loan

(obsolete, rare) To pour back.

Were the humours of the eye tinctured with any colour, they would refund that colour upon the object. — Ray.

(en noun)

An amount of money returned.

If the camera is faulty, you can return it to the store where you bought it for a refund.

* English heteronyms

(en noun)

A deduction from an amount to be paid; an abatement.

The return of part of an amount already paid.

(photography) The edge of a roll of film, from which no image can be developed.

A rectangular groove made to hold two pieces (of wood etc) together; a rabbet.

* '>citation

A piece of wood hafted into a long stick, and serving to beat out mortar.

An iron tool sharpened something like a chisel, and used for dressing and polishing wood.

A kind of hard freestone used in making pavements.

* (wikipedia "rebate") * * PhotoNotes.org Dictionary of Film and Digital Photography

(rebat)

To deduct or return an amount from a bill or payment

To diminish or lessen something

To beat to obtuseness; to deprive of keenness; to blunt; to turn back the point of, as a lance used for exercise.

* Shakespeare

But doth rebate and blunt his natural edge.

To cut a rebate (or rabbet) in something

To abate; to withdraw.

(Foxe)