Starbucks has reported around US$1.77 billion sitting unspent on its cards. That money does not vanish. Starbucks eventually books it as revenue.

Almost all gift cards and vouchers work this way. Around 10% of gift card and voucher value is never redeemed by employees, and that's not by accident. The traditional systems are designed knowing a portion will never be spent. That means part of your gifting budget is lost money every year, on top of the time and effort spent ordering, posting, tracking, and reconciling gift cards and vouchers.

There is a simpler way to reward your people that does not waste money and time , an instant and digital employee gifting account and card , where unspent value comes back to you and every dollar is tracked. Making the switch is easier than you think. Most small and mid-sized teams are up and running in just a few weeks. Here's why employers are switching, and the six steps to make it happen.

How gift cards and vouchers costs you more more than it seems

Three quiet costs sit inside typical  gift cards and vouchers.

Unused money. Consumer NZ research found one in five gift card holders have been stuck with an expired card, and New Zealanders have over $267million on unredeemed  gift cards across the country, with retailers that publish redemption data reporting 5% to 10% of card value is never redeemed. Whatever the exact rate in your business, it is spent that never lands as a benefit.

Admin time. Teams sourcing gift cards and vouchers, packaging them, coordinating delivery, tracking recipients, and reconciling spend. What should have been a simple way to recognise employees became a time-consuming process that creates delays and an inconsistent employee experience.

A benefits gap employees notice. Employees place a high value on meaningful benefits, ranking them second only to work-life balance in Randstad's Employer Brand Research for New Zealand. Yet many feel their employer falls short. When benefit budgets disappear into expired gift cards, vouchers and unclaimed reimbursements, organisations aren't just wasting money. They're missing an opportunity to deliver benefits employees actually value. 

Single-retailer gift cards and vouchers limit employee choice, meaning employers can spend money on gifts employees don't actually want and will not spend, meaning money gets wasted and forgotten. 

There is also US research worth noting for gifting specifically: 75% of employees told gifting platform Snappy they want to choose their own gift. Providing employees with choice helps optimise your gifting spend by ensuring the benefit is something they actually want. Source: https://www.snappy.com/blog/what-employees-really-want-this-holiday-season-2025-insights-every-leader-needs-to-drive-stronger-results-in-2026

What a benefits card changes

An employee gifting account  flips the model. Instead of buying value from a card issuer, you load value onto a card your business controls. On Extraordinary, Gifting works like this:

• The gift lands in the employee's Extraordinary gifting account and is instantly available on their prepaid Mastercard, ready to use with Apple Pay or Google Pay. 
• Employees can spend anywhere Mastercard is accepted, just like any other bank card.
• Unspent value returns to your business. You only pay for what is actually used.
• Every dollar is tracked: who received what, when, and what was spent, in one dashboard. No receipts to chase, no reconciliation spreadsheet.
• Digital cards are issued at no charge, and the platform fee is a flat 5% on the amount loaded.

The five-step switch

Changing how your company does gifting is not a migration project. Self-signup takes a few minutes and your first gift could go out the same day. The steps:

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Frequently asked questions

Do we lose the money if an employee never spends their gift?

On most traditional gift cards and vouchers, usually yes. The value sits on the card until spent or expired. With Extraordinary, unspent gift value returns to your business once the expiry timeframe you set is complete.

Is a benefits card gift still subject to FBT?

Employee gifts are unclassified fringe benefits. They are exempt while you stay under $300 per employee per quarter and $22,500 across all employees per year; exceed either and fringe benefit tax applies to the full amount handed out. Extraordinary provides the reporting to track those totals, not tax advice. Confirm your treatment with your tax adviser.

Can employees spend the card anywhere?

Yes. With the Gifting module, gifts are loaded onto an open-loop Extraordinary Card, which can be spent anywhere Mastercard is accepted. Employees simply add the card to Apple Pay or Google Pay and spend it like any other Mastercard.

What does it cost compared to gift cards?

Gift cards and vouchers typically cost a per-card fee plus postage, and you fund the full value regardless of what is used. Extraordinary charges a flat 5% on the amount loaded, digital cards are issued at no charge, and unspent value comes back. On our platform we see returned range from 5% to 13%.

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Sources

1. The end of unfair gift card expiry dates: one in five stuck with an expired card (Consumer NZ)
2. Use it or lose it: gift card holders urged to check expiry dates, ~$10m a year lost (Consumer NZ via RNZ)
3. Gift cards and vouchers: minimum three-year expiry from 16 March 2026 (Commerce Commission)
4. How much do expense reports really cost a company? (GBTA Foundation)
5. What really matters to New Zealand workers (Randstad Employer Brand Research NZ)
6. 2025 holiday gifting insights: 75% of employees want to choose their own gift (Snappy)

1. Limits for FBT on unclassified benefits and gift cards (Inland Revenue)
2. New tax laws to know about: gift card FBT/PAYE election (Deloitte New Zealand)
3. Transitioning to a lifestyle spending account: steps and timelines (Benepass)
4. Implementation FAQ: two to four week rollouts (Compt)

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