rebate vs discount

rebate and discount both are nouns.

Word	Noun	Adjective	Verb	Adverb
rebate	Yes	No	Yes	No
discount	Yes	No	Yes	No

As nouns, rebate and discount are synonyms defined as:

As verbs, discount is a hypernym of rebate; that is, discount is a word with a broader meaning than rebate:

rebate (noun)	discount (noun)
a rectangular groove made to hold two pieces together	the act of reducing the selling price of merchandise
a refund of some fraction of the amount paid	an amount or percentage deducted
	interest on an annual basis deducted in advance on a loan
	a refund of some fraction of the amount paid

rebate (verb)	discount (verb)
cut a rebate in (timber or stone)	bar from attention or consideration
join with a rebate	give a reduction in price on
give a reduction in the price during a sale