Choose how employees pay
Choosing how employees will pay for merchandise is one of the most important decisions when setting up your company store. The payment method impacts employee participation, budgeting, reporting and the overall success of the program.
Launch by Lead Apparel offers flexible payment options for employee merchandise programs, including Launch codes, gift cards and employee-paid ordering.
Most companies today choose Launch codes because they provide companies with more flexibility around budgeting, employee eligibility and long-term program management.
Launch codes
Launch codes are the most popular payment method on Launch and the preferred option for most employee merchandise programs.
Companies can issue:
- A fixed dollar amount per employee
- A percentage discount up to 100% off
Launch codes are commonly used for:
- Employee onboarding
- Holiday gifting
- Department budgets
- Employee anniversaries
- Client gifting
- Ongoing company merchandise programs
Unlike traditional gift cards, companies are only billed for the amount employees actually redeem.
For example, if an employee receives a $200 Launch code but only spends $125, the company is only billed for the $125 that was used.
Launch codes also support:
- Employee tagging
- Department-based eligibility
- Company email restrictions
- Optional expiration dates
- Evergreen onboarding programs
Companies using Launch discount codes can optionally limit how many products employees are allowed to order, helping maintain budget control during fully funded programs.
Fixed Amount codes also allow employees to spend beyond the code value by paying the remaining balance with a credit card at checkout.
This flexibility allows companies to manage employee merchandise programs with significantly less administrative work.
Gift cards
Gift cards are still available on Launch, although many companies now prefer Launch codes because they provide more flexibility and operational control.
With gift cards:
- The company purchases the balance upfront
- Employees redeem the balance over time
- The full amount is charged regardless of how much is ultimately used
Gift cards can still work well for simple one-time gifting scenarios, but Launch codes are typically more efficient for ongoing employee programs.
Employee paid
Employee-paid stores allow employees to place orders using their own payment method at checkout.
This setup is most commonly used when:
- Employees have company-issued purchasing cards
- Merchandise ordering is optional
- Employees order independently
If companies require employees to pay for the entire order using a personal payment method, participation rates are almost always significantly lower.
In some cases, only 5–10% of invited employees will ultimately place an order.
For this reason, many companies choose to subsidize all or part of the order through Launch codes instead.
Credit card payments are always accepted at checkout. Employees can use a credit card to pay any balance above a Launch code or gift card value, or pay for the entire order directly if no funding method has been assigned.
How payment methods impact participation
The payment structure directly affects employee participation rates.
Companies typically see the strongest participation when:
- Employees receive enough funding to comfortably order premium products
- The ordering experience feels simple and enjoyable
- Employees are not burdened with significant out-of-pocket costs
Well-funded Launch code programs combined with premium merchandise often achieve participation rates between 95–100%.
One common mistake companies make is offering a small employee allowance while expecting employees to cover a large balance themselves. In many cases, this reduces excitement around the program and lowers overall participation.
Best practices
- Use Launch codes for most employee merchandise programs
- Offer enough funding for employees to comfortably order premium products
- Limit product quantities when using 100% discount codes
- Use employee tagging for department-based programs
- Leave onboarding codes active indefinitely for new hires
- Avoid overly complicated employee-paid ordering structures
Related articles
- Launch codes vs Gift cards
- Fixed Amount vs Discount codes
- How to create your first Launch code
- Tagging employees for Launch codes
- Budgeting for employee merchandise