Google Ads billing refers to the process of how payments are handled for your Google Ads campaigns. It’s essential to understand the different payment methods, payment options, and billing cycles to ensure that your campaigns run efficiently and within budget. Whether you prefer manual or automatic payments, this guide will cover everything you need to know about Google Ads billing.
For expert help managing your campaigns, consider working with a Google Ads agency to optimise your ad spend and performance.
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What Is Google Ads Billing?
Google Ads billing is the system used to process payments for your ad campaigns. When you run a Google Ads campaign, Google charges you for clicks or impressions based on your set daily budget. Depending on the payment method you choose, charges are applied either after a threshold is reached or manually in advance. The billing system ensures that your campaigns continue to run without interruptions, provided you manage your billing settings correctly.
When setting up your billing, make sure to note your Google Ads Account ID as it will help you manage your account going forward.
How Google Ads Billing Works
Google Ads offers two primary billing methods: automatic payments and manual payments. With automatic payments, Google charges you after your ads accrue costs. The charges occur either after reaching a billing threshold or on a monthly billing cycle. For manual payments, you prepay your account and Google deducts the cost from the prepaid balance until it is used up.
Understanding the Google Ads Billing Cycle
The billing cycle depends on your payment method and how much you spend. For automatic payments, you are billed after hitting your threshold, or on the 1st of the month, whichever comes first. The billing cycle ensures that you’re only charged after your ads have been shown, making it a flexible solution for businesses with varying budgets.
Practical Example:
Let’s say you’ve got a billing threshold of R5,000, and your daily ad spend is R500. As your ads accumulate costs, Google will charge you once your total ad spend reaches R5,000. For instance, after running your ads for 10 days at R500 per day, you’ll hit the R5,000 threshold, and Google will bill you at that point.
If your daily ad spend is lower and you don’t reach the R5,000 threshold within the month, Google will charge you for the total ad spend at the end of the billing cycle. For example, if your ad spend totals only R3,000 at the end of the month, that’s the amount you’ll be billed on the 1st. As your account continues to perform well, your billing threshold may increase to accommodate higher spending levels.
Setting Up Your Google Ads Billing Profile
A Google payments profile can be created when you first set up your Google Ads account, and contains important details such as your payment method, billing information, and invoice preferences. Setting up your billing profile correctly ensures that your campaigns continue to run without disruption.
Steps to Create Your Google Ads Billing Profile
Creating a Google Ads billing profile is simple:
- Create a new Google Ads account.
- Under “Billing Setup” enter your business name, address, and preferred payment method.
- Add your billing information, including credit or debit card details.
Once you complete these steps, your billing profile will be active, and you can start running campaigns.
How Can I Manage My Google Ads Billing?
On the Google Ads billing page, you can manage all your billing and payment information. To access it, click the Billing tab on the left-side navigation menu. This page allows you to view past transactions, update your payment methods, promotions, and manage your billing profile settings. To take advantage of promotional offers, consider applying a Google Ads voucher to reduce your ad spend.
You can also use the page to make manual payments for your ad spend by clicking the “Make a payment” button on the Summary page.
Payment Methods in Google Ads
Google Ads offers a variety of payment methods which provide flexibility in how you manage your ad spend.
How to Add a Payment Method in Google Ads
To add a payment method in Google Ads:
- Go to the “Billing” section.
- Click on “Payment Methods” and select “Add a Payment Method.”
- Enter your credit card or debit card information.
- Click “Save” to apply the new payment method.
Google Ads Payment Methods Explained
Google Ads supports various payment methods depending on your currency and country. Additionally, you can set up multiple payment methods to ensure that your campaigns continue running if one payment method fails.
Billing Currencies in Google Ads
Choosing the right currency for your Google Ads account is critical to managing costs effectively, especially for international advertisers.
Choosing Your Google AdWords Billing Currency
When setting up your billing profile, you will be asked to select a Google AdWords billing currency. This is the currency in which Google will charge your campaigns. Be sure to choose the correct currency at the time of setup, as it cannot be changed later.
Changing Your Billing Currency: What You Need to Know
Unfortunately, once you’ve chosen a billing currency, you cannot change it within the same Google Ads account. If you need to switch currencies, you’ll have to create a new Google Ads account with the desired currency.
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Google Ads Payment Options: Manual vs. Automatic
Google Ads allows advertisers to choose between manual payments and automatic payments, giving businesses the flexibility to manage their finances.
What Is Google Ads Manual Payment?
Google Ads manual payment is a prepay option where you add funds to your account before running your campaigns. Google will deduct charges from your prepaid balance as your ads accumulate costs. This option is ideal for advertisers who prefer to control spending upfront and avoid automatic charges.
How Automatic Payments Work in Google Ads
In contrast, automatic payments mean you pay after your ads accrue costs. Google charges your payment method once you hit a billing threshold or at the end of the month, whichever comes first. Automatic payments are convenient for advertisers who prefer to let Google debit them automatically.
Google Ads Threshold Charge
The Google Ads threshold charge is a payment method that charges you after spending a certain amount.
Understanding the Google Ads Threshold Charge
When you use automatic payments, Google sets a threshold at which you will be charged. Initially, the threshold might be low, but as you continue running campaigns and build a payment history, this threshold can increase.
For example, you may be charged every time you spend R5,000 initially, but as you run more campaigns, the threshold may increase to R10,000.
How to Manage Your Threshold Charge in Google Ads
To view your threshold limit, visit the “Billing” section of your Google Ads account. From here, you can see your current threshold and any upcoming charges. If you’re getting charged too frequently, consider switching to manual payments to maintain tighter control over your ad spend.
Use our Google Ads cost calculator to accurately estimate your ad budget and plan your spend.
Common Issues and Troubleshooting
Google Ads billing is designed to be user-friendly, but issues can still arise. Here are common problems and how to solve them.
Payment Method Issues and How to Fix Them
If your Google Ads payment method is rejected or you experience billing failures, it’s important to ensure that your payment method details are up to date. Expired cards or insufficient funds in your account can cause problems. Updating your card details or adding a new payment method will resolve most issues.
What to Do If Your Billing Profile Is Rejected
If your Google Ads billing profile is rejected, it may be due to incomplete or incorrect information. Double-check that your business details, tax information, and payment methods are correct. If you need help resolving billing issues, call the Google Ads contact number for South Africa for assistance.
FAQs
Can I Generate Reports from My Google Ads Billing History
Yes, you can generate reports from your billing history. On the Billing tab, go to the “Transactions” section, where you’ll find a summary of your past payments, credits, and costs related to your account. You can sort and filter this information by time range to get specific data. Additionally, Google Ads allows you to export this data into a spreadsheet, which can be used to create detailed reports for tracking your advertising expenses and payments over time.
Make sure your billing reflects accurate campaign performance by setting up Google Ads conversion tracking.
What Does “Google Ads: Your Billing Document Is Ready” Mean?
When you receive an email from Google Ads stating “Your billing document is ready,” it means that your invoice or billing statement for the recent ad spend has been generated. You can view and download this billing document from the “Billing & Payments” section of your Google Ads account. It contains details of your charges, including payment dates, ad spend, and any adjustments made during the billing period.
What’s the Difference Between Google Ads Billing ID and Google Ads Account ID?
The Google Ads Billing ID is a unique identifier linked to your billing profile, used for processing payments and managing invoices. This ID helps track transactions and manage financial details within your billing profile. On the other hand, the Google Ads Account ID is a 10-digit number used to identify and manage your Google Ads campaigns. It’s essential for granting access to agencies or managing multiple accounts.
How Can I Resolve a Google Ads Billing Dispute?
If you find an incorrect or unidentified charge in your Google Ads account, you can start a Google Ads billing dispute by reviewing your transaction history and contacting Google Ads support. In cases where you’ve filed a dispute with your bank (called a chargeback), your bank will notify Google, who will then review the dispute. If the dispute is resolved in your favour, the charge will be corrected. However, if it’s not, your account may require additional payments to remain active.
