Managing your Google Ads payment threshold is essential to ensuring your campaigns run smoothly and within budget. The payment threshold refers to the specific amount Google charges you after your ads accrue costs, either after hitting this threshold or at the end of a billing cycle. In this article, we will break down how the Google Ads threshold works and how to update it (if you are eligible).
For a broader understanding of Google Ads payments, check out our Google Ads Billing Guide.
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What Is The Google Ads Payment Threshold?
The Google Ads payment threshold is the set limit at which Google charges your account for the ad spend accumulated. When your ad costs reach this threshold or at the end of a 30-day billing cycle, whichever comes first, Google bills your payment method. For new accounts, the threshold typically starts low and increases as your account proves reliable in paying on time.
For example, if your threshold is R5,000, you’ll be charged as soon as your ads incur R5,000 in costs. If your account does not hit this threshold within the billing cycle, you will be charged the total spent at the end of the 30-day period.
Make use of our Google Ads Cost Calculator to estimate your ROI based on your ad spend and conversion rates.
How to Change Your Google Ads Threshold
Google automatically updates your payment threshold as your account spends more and demonstrates timely payments. However, it is not always applied automatically. Once your account is eligible, Google notifies you, and you may have the option to change the threshold yourself. The system is designed to increase your threshold in increments, ensuring you’re charged less frequently as your ad spend grows. For instance, as a new account your threshold might start at R5,000 but can increase to R10,000 or more over time, depending on your spending patterns.
Not all advertisers can update their payment threshold. Google will notify you when your threshold changes.
How to Manage Your Google Ads Payment Threshold
To manage your Google Ads payment threshold, regularly review your account’s Billing & Payments settings. This section allows you to track your current threshold, check your ad spend, and see when the next charge will occur. Here’s how to keep things running smoothly:
- Log into your Google Ads account and click the Billing icon.
- Navigate to the Payments section to view your current threshold and spending.
- Set reminders to check the threshold regularly, especially after high-advertising periods, to avoid unexpected charges.
By staying on top of your threshold, you can better manage your budget and ensure there are no surprises when the billing cycle ends.
Benefits of the Google Ads Payment Threshold System
The payment threshold system provides many benefits, especially for new advertisers and growing businesses.
- Flexibility: It allows businesses to start with lower payment amounts, ensuring they’re not overcharged when campaigns first launch.
- Automation: Once your threshold is set, Google automatically bills you, reducing the need for manual payments.
- Scalability: As your ad spend grows, Google adjusts your threshold to charge you less frequently, providing more streamlined financial management.
Common Issues With Google Ads Payment Threshold
Occasionally, you may encounter issues with your Google Ads payment threshold. Common problems include failed payments or exceeding your threshold before the billing cycle ends. If your payment method fails (e.g., expired credit card or insufficient funds), Google will stop running your ads until the issue is resolved.
To fix this:
- Update your payment method in the Billing & Payments section.
- Set up a backup payment method to prevent future disruptions.
Additionally, if your account doesn’t see a threshold update when expected, you can contact Google Ads support to review your account (make sure you know your Google Ads Account ID).
Google Ads Payment Methods and Thresholds
Most businesses use credit or debit cards, but Google also allows for bank transfers and PayPal, depending on your location.
- Automatic Payments: Charges are made after your threshold is met or at the end of the billing cycle.
- Manual Payments: Prepaid balance is used until depleted, after which you’ll need to add more funds to keep your ads running.
It’s important to note that some Google Ad payment methods may result in different thresholds or additional security checks, particularly in regions with stricter financial regulations.
By understanding and managing your Google Ads payment threshold, you can ensure that your campaigns run smoothly, your budget is well-managed, and your payment methods are always up to date. For expert assistance with your Google Ads campaigns, consider working with a professional Google Ads agency to optimise your ad performance and billing strategy.
Ready to grow using Google Ads?
Work with certified and specialist Google Ads experts to manage your campaigns and grow your business online. We’ll help you generate more leads and revenue.
Packages starting at R10,000 p/m
