Welcome to the exciting world of digital advertising! As we kick off your campaigns, one of the most common questions we get revolves around how advertising platforms like Meta (Facebook/Instagram Ads) and Google Ads handle billing. It’s a bit different from a typical monthly subscription, but understanding the process is key to keeping your ads running smoothly and generating those valuable leads.
Let’s break down how these platforms charge your credit card and, more importantly, how you can prevent any unexpected pauses in your ad delivery.
How Meta Ads Charges Credit Cards for New Ad Accounts
For new Meta Ads accounts, billing primarily works on a payment threshold system, along with a monthly billing date.
Here’s how it works and the frequency of credit card charges:
Payment Threshold:
- When you start running ads, Meta will charge your credit card (or other payment method) automatically as your accumulated ad costs reach a certain monetary amount, known as a “billing threshold.”
- For new accounts, this threshold typically starts very low (e.g., $0.25, $0.50, $1, $10, etc.). This is a security measure by Meta to verify your payment method and build trust.
- As you consistently make successful payments and spend more on ads, Meta gradually increases your billing threshold. This means you’ll be charged less frequently as your threshold goes up (e.g., from small increments to eventually higher amounts like $900).
- If you reach your current billing threshold, Meta will charge your card immediately.
Monthly Billing Date:
- Regardless of whether you hit your threshold, Meta also has a specific monthly billing date (e.g., the 1st of the month, the 24th of the month, etc.).
- On this date, Meta will charge your card for any outstanding ad spend that has accumulated since your last charge, even if you haven’t reached your billing threshold.
Frequency of Charges for New Accounts:
For new Meta Ads accounts, you can expect your credit card to be charged frequently in the beginning. This is because your initial payment threshold is very low. You might see charges every day or even multiple times a day if the ad spend quickly reaches the small threshold.
As your account builds a positive payment history and trust with Meta, your payment threshold will increase, leading to less frequent charges. You can monitor your current billing threshold and billing date within your Meta Ads Manager’s “Billing” or “Payment Settings” section. While you can often request to increase your threshold, Meta ultimately determines how quickly it increases based on your account’s activity and payment behavior.
How Google Ads Charges Credit Cards for New Ad Accounts
Google Ads primarily uses an automatic payment system for most advertisers, especially new accounts. This system involves two main triggers for charges: a payment threshold and a monthly billing date.
Here’s how Google Ads charges credit cards for new accounts and the typical frequency:
Payment Threshold:
- When you set up a new Google Ads account with automatic payments, Google assigns an initial “payment threshold” (e.g., $50, $200, or similar amount, which can vary by country and currency).
- As your ads accrue costs, Google will automatically charge your credit card whenever your ad spend reaches this preset threshold.
- For new accounts, this threshold starts low. As you make successful payments and establish a good payment history, Google may automatically increase your threshold. This means you’ll be charged less frequently, but for larger amounts, as your account matures (e.g., from $50 to $200, then $500, etc.).
- It’s important to note that if your ad spend accrues very quickly, the amount charged might be slightly more than the threshold.
Monthly Billing Date:
- Even if you don’t reach your payment threshold, Google Ads will also charge your credit card on a specific monthly billing date. This date is typically around the first day of the month for any outstanding balance accumulated since your last charge.
- Your billing cycle starts from the day you begin running ads. So, if you start mid-month, your monthly billing date will align with that start date.
Frequency of Charges for New Accounts:
For new Google Ads accounts, you can expect your credit card to be charged frequently in the initial stages. This is due to the low starting payment thresholds. If your ads are running and spending money, you might see charges every few days, or even more frequently if your daily spend quickly hits the small threshold.
As your account gains a positive payment history and its payment threshold increases, the frequency of charges will decrease. For example, if your threshold increases to $500, you will only be charged when your ad spend hits $500, or on your monthly billing date if you don’t reach that threshold.
Important Considerations:
- Authorization Holds: Google may place small “authorization holds” on your credit card (e.g., $1 or a few cents) when you add it or periodically to verify its validity. These are temporary and usually disappear within a few days; they are not actual charges.
- Manual Payments: While automatic payments are the default, in some regions, Google Ads still offers a manual payment option where you prepay your account, and ad costs are deducted from that prepaid balance. However, automatic payments are generally recommended for continuous ad delivery.
- Monitoring: It’s crucial to regularly monitor your billing summary in your Google Ads account to keep track of your spending, current threshold, and upcoming charges. You can typically find this in the “Tools & Settings” section under “Billing & payments” > “Summary.”
In summary, for new Google Ads accounts using automatic payments, charges occur when your ad spend reaches a set (initially low) threshold, or on your monthly billing date, whichever comes first. This often results in more frequent charges at the beginning.
What You Can Proactively Do to Prevent a Disruption in Ads
Preventing ad pauses due to credit card issues is crucial for maintaining consistent campaign performance on platforms like Google Ads and Meta Ads. Here are key recommendations for credit card owners:
Maintain Sufficient Funds/Credit Limit:
- Keep a close eye on your account balance or credit limit. Insufficient funds are the most common reason for declined payments. Ensure your credit card has enough available credit to cover your ad spend, especially if your campaigns are scaling up or if you’re close to a billing threshold.
- Communicate with your bank: If you anticipate high ad spend, inform your bank or credit card provider. They can temporarily increase your daily or monthly spending limits or whitelist transactions from Google/Meta to prevent fraud alerts.
Use a Dedicated Card or Backup Payment Method:
- Consider a dedicated credit card: Using a credit card solely for advertising expenses can help you track spend more easily and avoid issues with other personal or business transactions.
- Set up a backup payment method: Both Google Ads and Meta Ads allow you to add a backup credit card or payment method. This is a critical safeguard. If your primary card declines, the platform can automatically attempt to charge the backup, preventing an immediate pause in your ads.
Keep Payment Information Up-to-Date:
- Monitor expiration dates: Ensure your credit card information, including the expiration date and CVV, is always current in your ad platform’s billing settings. Expired cards are a frequent cause of payment failures.
- Verify billing address: Make sure the billing address associated with your credit card matches the address on file with your ad platform. Discrepancies can trigger security flags.
Understand Payment Thresholds and Billing Cycles:
- Be aware of your payment thresholds: Know when your ad platforms are likely to attempt a charge. For new accounts, these thresholds are often low, leading to more frequent charges. As your account matures and builds trust, thresholds typically increase.
- Note monthly billing dates: Even if you don’t hit a threshold, platforms will charge any outstanding balance on a specific monthly date. Be prepared for this charge.
Avoid Suspicious Activity and Chargebacks:
- Do not issue chargebacks: If you have a legitimate billing dispute, contact the ad platform’s support first. Requesting a chargeback from your bank for a legitimate ad balance can lead to immediate and permanent account suspension.
- Ensure legitimate use: Avoid any activity that could be flagged as suspicious, such as using multiple payment methods inconsistently across various accounts without clear justification, or attempting to use promotional codes improperly.
Monitor Your Ad Account Notifications:
- Check email and in-platform notifications regularly: Ad platforms will often send email alerts or display prominent warnings in your account if there are payment issues or if a payment has failed. Respond to these promptly.
- Review billing summaries: Periodically check the “Billing” or “Payment Settings” section of your Google Ads or Meta Ads account to review transaction history, current balance, and any payment method warnings.
By proactively managing your credit card and payment settings, you can significantly reduce the risk of unexpected ad pauses and ensure your campaigns run smoothly.
Have more questions about your ad campaigns or billing? Don’t hesitate to reach out to our team – we’re here to help!