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rebate (v.)

late 14c., rebaten, "to reduce, diminish;" early 15c., "to deduct, subtract," from Old French rebatre, rabatre, rabattre "beat down, drive back," also "deduct," from re-, "back," or perhaps "repeatedly" (see re-) + abattre "beat down" (see abate).

Original senses now are obsolete. The meaning "to pay back (a sum) as a rebate" is from 1957 and might be from rebate (v.). Related: Rebated; rebating.

rebate (n.)

1650s, "an allowance by way of discount, deduction from a sum of money to be paid," from rebate (v.). By 1882 as "a repayment, money paid back."

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Definitions of rebate from WordNet
1
rebate (v.)
give a reduction in the price during a sale;
rebate (v.)
cut a rebate in (timber or stone);
rebate (v.)
join with a rebate;
rebate the pieces of timber and stone
2
rebate (n.)
a refund of some fraction of the amount paid;
Synonyms: discount
rebate (n.)
a rectangular groove made to hold two pieces together;
Synonyms: rabbet
From wordnet.princeton.edu