Launch codes vs Gift cards

Written by Justin Hoehn •Updated May 25, 2026

Companies have traditionally used gift cards to fund employee merchandise orders, but many modern employee programs are now shifting toward Launch codes because they provide more flexibility, better budget control and significantly less administrative work.

Both options are available on Launch by Lead Apparel, but they function very differently behind the scenes.

How Launch codes work

Launch codes were designed specifically for modern employee merchandise programs.

Instead of purchasing balances upfront, companies issue a flexible code that can be assigned to all employees, specific departments or limited employee groups.

Companies can issue:

A fixed dollar amount
A percentage discount up to 100% off

Unlike traditional gift cards, companies are only billed for the amount employees actually redeem.

For example, if a company issues a $200 Launch code and an employee only spends $125, the company is only billed for the $125 that was used. Unused balances are never billed.

Launch codes also provide significantly more operational flexibility through:

Employee tagging
Department-based eligibility
Company email restrictions
Optional expiration dates
Evergreen onboarding programs

Companies using Launch discount codes can also limit how many products employees are allowed to order during fully funded programs, helping maintain budget control while still creating a premium employee experience.

Fixed Amount codes also allow employees to spend beyond the code value by paying the remaining balance with a credit card at checkout.

How gift cards work

Gift cards function more like a prepaid balance.

The company purchases a fixed amount upfront, and employees redeem the balance over time until the amount is exhausted or the gift card expires.

Unlike Launch codes, the company is charged for the full gift card amount immediately regardless of how much is ultimately used.

Gift cards can still work well for simple one-time gifting scenarios, and some companies continue using them because they are familiar with traditional gift card programs.

However, most companies using Launch ultimately transition toward Launch codes because they provide more flexibility and simplify long-term program management.

Why most companies prefer Launch codes

The biggest advantage of Launch codes is flexibility.

Companies can manage employee merchandise budgets more efficiently because they are only billed for redeemed usage rather than pre-purchasing large gift card balances upfront. This reduces unused spend and gives companies more control over budgeting and forecasting.

Launch codes also provide much more flexibility around employee eligibility. Companies can assign codes broadly across the organization, restrict them to specific employee groups or create department-based programs directly within the Launch platform.

Optional expiration dates also make Launch codes ideal for:

Holiday programs
Seasonal merchandise launches
Employee anniversaries
Ongoing onboarding programs

Launch codes also reduce administrative work by centralizing reporting, invoices and employee ordering activity directly inside the Launch dashboard. Companies no longer need to manually manage large numbers of gift card balances or reconcile unused amounts across employees.

Sales tax considerations

Gift cards and Launch codes are also handled differently from a sales tax perspective.

With gift cards, sales tax may still apply depending on the shipping destination and tax liability requirements.

With Launch codes, the code discounts the order total directly and sales tax is calculated based on the final discounted amount.

In some cases, this may significantly reduce or eliminate the sales tax owed on the order.

Credit card flexibility

Credit card payments are always accepted at checkout on Launch.

Employees can:

Pay balances above a Launch code value
Pay balances above a gift card value
Pay for the full order directly if no funding method has been assigned

This gives companies additional flexibility when setting employee allowances or partial subsidy programs.

Which option is best?

Today, most companies using Launch choose Launch codes because they provide:

More budgeting flexibility
Better employee eligibility controls
Reduced administrative work
Less unused spend
More scalable long-term program management

Gift cards still work well for certain traditional gifting scenarios, but Launch codes are typically the more efficient solution for modern employee merchandise programs.

Best practices

Use Launch codes for ongoing employee merchandise programs
Use fixed amount codes for the most flexible employee experience
Set expiration dates for seasonal or holiday campaigns
Use employee tagging for department-based budgets
Limit product quantities for fully funded discount programs
Avoid pre-purchasing large unused gift card balances

Choosing how employees pay
Fixed Amount vs Discount codes
How to create your first Launch code
Who can use Launch codes
Budgeting for employee merchandise