Google Ads billing: postpay, prepay and monthly invoicing

This guide is built from Google Ads Help, mainly Know your billing options, About payment settings, charges for postpay, Prepay payment setting, About monthly invoicing and About payments profiles. Suspensions over unpaid balances or suspicious payments are covered in our account suspended guide; this page is about how billing works day to day.

Payment setting vs payment method

Google separates two choices. The payment setting is when you pay. The payment method is what you pay with, such as a credit or debit card or a bank account. Google has three payment settings:

• Postpay, formerly called automatic payments: your ads run first and Google charges your payment method afterwards.
• Prepay, formerly called manual payments: you add money first and your costs are deducted from it.
• Monthly invoicing: Google gives you a line of credit and sends an invoice each month.

Which settings and methods you see depends on your billing country and the currency of the account. Google also notes that a setting can be "temporarily unavailable" while it reviews the account's eligibility. Billing details have to be entered before a new account is created, and Google warns that reports, statistics and billing follow the country and time zone you pick, "so choose carefully".

Postpay and the payment threshold

With postpay, Google charges your primary payment method "on the first day of each month or whenever your account reaches a predetermined amount known as your payment threshold". Each charge covers current costs, any unpaid balance from earlier periods and taxes and fees for your country, minus adjustments and promotional credits.

The threshold is not fixed. Each time an account hits it before the end of the month, it rises, up to a highest threshold. Google's example starts at $50, then goes to $200, $350 and $500, but it says thresholds "vary per account, country, and currency", so check your own account. Points worth knowing:

• You can be charged several times in a month. In Google's example, a $500 threshold and $1,500 of costs means three charges of $500.
• A charge can be slightly above the threshold if the account spends quickly, and the 1st-of-the-month charge can exceed it too.
• Google does not email you when the threshold goes up. The Next automatic payment card on the Billing summary shows the threshold and the likely next charge date.
• Some accounts see an Edit threshold link under Billing > Settings > How you pay, which lets you raise the threshold up to a recommended amount for fewer, larger charges. If the link is missing, the system sets the threshold.
• You can still pay in advance on postpay with Make an optional payment. It reduces or delays the next automatic charge, but Google warns that paying close to a scheduled charge can mean being charged twice.

Google's billing options page also says it "no longer accepts prepaid cards for postpay payments".

Prepay

On prepay your ads run once a payment arrives and stop when the money is used up. You select Add funds, pick or add a payment method and enter any amount above the minimum for your location and currency. Google recommends adding "30 times the cumulative amount of your ad campaign average daily budgets" and emails you when less than 7 days of funds remain.

Timing matters. Card payments clear almost immediately, but Google says payments can take "from 24 hours to a week or more" depending on the method, and bank account prepayments up to 7 days. In some countries Google deducts VAT from your payment, so the usable credit is lower than the amount you send.

Prepay is missing from a long list of countries and territories on Google's prepay page, including the United States, Canada, the United Kingdom, Germany, France and Australia. Where it is unavailable, new accounts can't choose it and postpay accounts can't switch to it. Where it is available, a user with billing rights can switch between postpay and prepay under How you pay, but Google says there is "a limit on how many times you can switch". If you are on prepay and it is withdrawn in your country, you can move to postpay but not back.

Monthly invoicing

Monthly invoicing is a credit line. Google says it is typically used by large advertisers and by agencies managing clients' accounts. The requirements it lists "aren't limited to" these:

• A registered business for at least one year.
• A Google Ads account in good standing for at least 6 months.
• At least $5,000 USD a month, or the local equivalent, in any 3 of the last 12 months.

The account also has to be linked to a manager account, the bill-to details in Google Ads must match the company applying, and a company contact accepts the terms and becomes the primary billing contact. Google recommends turning on 2-Step Verification first. You apply by contacting Google, which reviews your company's credit history.

If approved, you get payment terms ("Typically, this is 30 days") and a credit line, the maximum unpaid balance across your invoiced accounts. Invoices arrive by email by the 5th business day of the month, and ads stay on during the switch. Google's sizing example: to spend $10,000 a month with 30 days to pay, the credit line needs to be at least $20,000, because a second month of costs builds up before the first invoice is paid.

Agencies with several invoiced accounts can use consolidated billing: one invoice per currency for accounts under one paying manager. Google says it isn't available to media agencies or to advertisers in France. Be careful with the paying manager link: Google warns that unlinking an account from it stops ads "immediately", so transfer the account to another paying manager first.

The payments profile and who can change billing

Every Google Ads account sits under a payments profile, which holds the legal name and address of who pays, stored payment methods, tax information, contacts and the account type. The type is Organization or Individual, and Google says it affects taxes and verification, so choose it correctly at sign-up.

The profile is shared across Google products such as Google Cloud and Google Analytics. Google's warning: editing details like payment methods "will affect other products" that use the same profile. That is why we suggest each business has its own profile rather than reusing an agency's or a personal one.

Switching between postpay and prepay needs Admin or Edit Payments profile access on the profile, or Admin or Billing access in Google Ads. For Organization accounts, adding or editing a payment method needs Admin or Billing access. Our access levels guide covers what the Billing level can and can't do.

Payment methods and a backup card

Available methods depend on the country of your business address and the account currency; Google points to its Payment methods & terms of service finder. When you add a card, you may see a temporary pre-authorization hold that drops "within a week". If your bank is in the European Economic Area, it may ask for extra authentication, such as a one-time code, under PSD2.

On postpay, Google "highly" recommends a backup payment method. If the primary method fails, for example through insufficient funds or an expired card, Google charges the backup instead. Only a credit or debit card can be a backup, not a bank account, and you can have one at a time. Set it under Billing > Settings > Payment methods > Actions > Set as backup payment method. It does not change your threshold or schedule.

New accounts sometimes see methods greyed out. Google's unavailable payment methods page says this comes from ongoing account checks and "doesn't necessarily mean that you've done anything wrong". The method generally becomes available after $200 USD of payments with an available method and 4 weeks of policy-compliant activity, and you can apply for quicker access.

Declined payments

Google's declined payment page stresses that "your credit card company or bank declines your payment, not Google". The Billing summary shows the details; if no reason is listed, ask your card issuer or bank. Once the bank side is fixed, pay the overdue balance to restart ads. Some qualifying accounts keep running briefly after a decline, so ads may not stop at once.

While the bank issue is open, you can make a payment with another card or bank account; Google says the account starts running again once it receives the payment. If you cancel an account with a balance due, that balance is charged within the next 60 days. Repeated declines and an unpaid balance can lead to a billing suspension, which our suspension guide covers.

Why a charge can be higher than your daily budget

On a given day a campaign can spend up to twice its average daily budget, but over a month Google says you won't pay more than 30.4 times the average daily budget for most campaigns. If served costs go above that, you are only billed up to the limit. The Billed cost report in the Billing section of the report template gallery shows served and billed cost per campaign. Budget settings themselves are in our budgets and bidding guide.

Two identical lines on a card statement are usually an authorization request that disappears within several days, according to Google's common questions about charges. For charges you can't place, Google lists what support needs: a bank statement screenshot with date, amount, currency and last 4 card digits, and your 10-digit customer ID.

Our view: how we set billing up

This part is our own practice, not Google's guidance. When we manage Google Ads for a client, the account and its payments profile stay in the client's name with the client's card, and we work through manager account access rather than paying for media ourselves. We add a backup card on day one, check the Next automatic payment card in the first weeks so the rising threshold is not a surprise, and pick the Organization profile type for businesses. Clients outside prepay countries are on postpay; we only suggest invoicing once the spend history meets Google's requirements.

Frequently asked questions

What is the difference between automatic and manual payments in Google Ads?

They are the old names. Automatic payments is now postpay: Google charges you after ads run, on the 1st of the month or when you reach your payment threshold. Manual payments is now prepay: you add funds first and ads stop when they run out.

Why can't I choose prepay in Google Ads?

Prepay is not available in many countries and territories, including the United States, Canada and the United Kingdom. There, postpay or monthly invoicing are the options. A setting can also be temporarily unavailable while Google reviews the account.

Why was I charged before the end of the month?

On postpay you are charged whenever costs reach your payment threshold, as well as on the 1st of the month. The threshold rises as you reach it, so early on you may see several smaller charges in one month.

Who qualifies for monthly invoicing?

Google lists a business registered for at least one year, an account in good standing for at least 6 months and at least $5,000 USD a month in any 3 of the last 12 months, among other requirements. The account must be linked to a manager account, and you apply by contacting Google.

What happens if my Google Ads payment is declined?

Your ads may stop until a payment goes through, although some accounts keep running briefly. Fix the issue with your bank, then pay the balance; a backup card on postpay is charged automatically if the primary method fails.

For more on Google Ads, see our guides to Google Ads basics, access levels, manager accounts, budgets and bidding and suspended accounts.