A point of sale (POS) rebate method and system allows a consumer purchasing a product having an associated manufacturer's mail-in rebate to redeem the rebate at the POS. Products that have associated manufacturer rebates are recognized when the products are purchased, e.g., based on information stored in a rebate database. When such products are identified, terms and conditions of a POS rebate are determined. The value of the POS rebate may be determined based on the value of the mail-in rebate offered by the manufacturer. The value of the POS rebate may be determined by querying a server containing rebate information, such as a server operated by or on behalf of the manufacturer or retailer. The consumer is then prompted to choose whether to keep the original manufacturer's mail-in rebate, or to accept the POS rebate, along with any terms and conditions associated with the POS rebate.