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Postpay payment method: When does my AdWords account get charged

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# 1
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Hi Everyone,

I am Pragati from the AdWords Team and today I am here to discuss how AdWords users are charged when they opt in to “Automatic Payments” or our Postpay payment option.

Advertisers who are on this payment method are generally charged according to our “threshold” system or their thirty-day Billing cycle, whichever comes first. The thirty-day billing cycle for each account starts from the day ad serving starts from your account. According to this cycle, the form of payment on file in an AdWords account is charged every thirty days.

You are probably wondering what the term “threshold” implies.

A threshold is basically a level of spending from an AdWords account, beyond which our system is triggered to charge the form of payment on file in the account. By default, the initial threshold in an AdWords account is set to US$50 or its equivalent in another currency.  When your account hits this amount in advertising charges, our system is prompted to charge the form of payment on file, provided that this occurs before the end of the thirty-day billing cycle.

Once the advertising charges hit the initial threshold amount, the threshold is raised by US$150 to US$ 200. The same procedure repeats for the next threshold and after this, the threshold amount is increased to $350 and finally to $500, which is the final threshold. Beyond this, even if your advertising charges hits $500 before the thirty day billing cycle ends, the threshold is not increased.

If your account has a high level of spending and an increase in the threshold amount would make the management of your account easier, you can always contact us and we will assist you with this.

Thanks for reading! Do let me know if you have any questions regarding this.


Re: Postpay payment method: When does my AdWords account get charged

Follower ✭ ☆ ☆
# 2
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Hi Pragati
Thanks for your great article. I'm still wondering about the threshold. Can you explain more about the threshold amount? If my clients hit the last amount of 500$, then their ads will stop?

My Agency are using post pay billing model, but this is the only point i still have wonder.

Thank you so much !
Marked as Best Answer.
Accepted by Hannah (Google Employee)
September 2015

Re: Postpay payment method: When does my AdWords account get charged

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# 3
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Thanks for reaching out. To answer your question, no your client's ads would not stop serving if they hit the last threshold of $500. This just means that the threshold limit would not be increased further. Thereafter, your client will be billed at a threshold of $500 or as per their thirty day billing cycle - whichever comes firstSmiley Happy.


--More About Thresholds--

A threshold is basically an amount of spending, after which our system will be triggered to charge you. Once this charge is cleared, a fresh cycle will start.


If you have any more questions around this, don't hesitate to get back to meSmiley Happy




Re: Postpay payment method: When does my AdWords account get charged

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# 4
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Threshold amount is decided for charging you, it does ,mean that this in case of automatic billing, you will be charged after reaching the threshhold amount. Lets take an example $500 is your current threshhold amount. So once you reach $500 wihtin 30 days, $500 will be debited from your credit card. If payment has been successfully debited from yoour credit card then your ad will kepp running. In case your payment declines, then your ad will stop serving, till the time payment has been successfully done.


Hope this can help you.


Thank you