There are some difference between Discounting and Retiring as given below:
Discounting:
- It is the process of selling the bill to the bank or anyone else before the due date.
- The reduction made by the bank is called discount.
- Discount is a loss to the person who discounts the bill and a gain to the bank.
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Retiring:
- It is the process of paying the amount of the bill before due date.
- The concession allowed to the acceptor is called rebate.
- Rebate is a loss to the payee and a gain to the acceptor.