The whole money back thing makes absolutely no sense. If you are going to sell something for $500, then say you will give $100 back after purchase, why not just make the product $400? Is it some sort of sleezy marketing scheme? ELI5. Please! Make this make sense.
Often these rebates are not instant. They comes weeks or months later, assuming the customer does the work to claim them. As a result, the company can also earn interest on that money for the duration before returning it, and it may have other impacts on their cash flow.
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