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Who is responsible for pending payments when adwords account is opened through my MCC

[ Edited ]
Visitor ✭ ✭ ✭
# 1
Visitor ✭ ✭ ✭

Hi all,

Just a short question:

When I open a Adwords account through my MCC and then give the customer access to fill in his payment details, but there comes a time that the customer can't pay the bill (bankrupted or not willing to pay).

Will Google point to me to pay the bill?

Since I opened the account?

1 Expert replyverified_user

Re: Who is responsible for pending payments when adwords account is opened through my MCC

[ Edited ]
Top Contributor
# 2
Top Contributor

Hi @Joris H,

 

The company being advertised and/or one listed as the billing party (customer) is the one responsible, so you, the agency should not be held accountable. This is why you want to structure your client accounts properly and have them in charge of billing.

 

With that said, I feel it would reflect poorly on an agency if it happened repeatedly. 

 

I would suggest contacting AdWords Support and going over the situation with them and alerting them to the fact that the client will not or cannot pay the bill. Then, I would pause everything in it, label it a dead account and move on.

 

Personally, I have had only one client in this situation in 15+ years, and I actually paid the bill and closed out the account properly (pay the bill; pause all campaigns, ad groups, keywords; label account paid and closed), so that it was correct in my AdWords Manger Account and so my agency was not seen as being involved in such nonsense. But I do know that what I did is not the norm for most agencies. These are decisions we each must make on a case by case situation. 

 

If we look at the terms and conditions for AdWords, (which the person who sets up the account agrees to on the payment page during setup of any AdWords account), this is what it says:

 

7 Payment Customer will pay all charges incurred in connection with the Program, in immediately available funds or as otherwise approved by Google, within a commercially reasonable time period specified by Google (e.g., in the Program user interface or IO).  Late payments bear interest at the rate of 1.5% per month (or the highest rate permitted by law, if less).  Charges are exclusive of taxes.  Customer will pay (i) all taxes and other government charges and (ii) reasonable expenses and attorneys’ fees Google incurs in collecting late payments.  Charges are solely based on Google’s measurements for the Programs and the applicable billing metrics (e.g., clicks or impressions).  Any portion of a charge not disputed in good faith must be paid in full.  No party may offset any payment due under these Terms against any other payment to be made under these Terms.  Google may, in its sole discretion, extend, revise or revoke credit at any time. Google is not obligated to deliver any Ads in excess of any credit limit.  If Google does not deliver Ads to the selected Targets, then Customer’s sole remedy is to make a claim for advertising credits within the Claim Period, after which Google will issue the credits following claim validation which must be used by the Use By Date.  Customer understands that third parties may generate impressions or clicks on Customer’s Ads for prohibited or improper purposes and that its sole remedy is to make a claim for advertising credits within the Claim Period, after which Google will issue the credits following claim validation which must be used by the Use By Date. TO THE FULLEST EXTENT PERMITTED BY LAW, (A) ADVERTISER AND CUSTOMER WAIVE ALL CLAIMS RELATING TO ANY PROGRAM CHARGES UNLESS A CLAIM IS MADE WITHIN THE CLAIM PERIOD AND (B) THE ISSUANCE OF ADVERTISING CREDITS (IF ANY) IS AT GOOGLE’S REASONABLE DISCRETION AND IF ISSUED, MUST BE USED BY THE USE BY DATE.

 

 

Kind Regards,

 

James

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Who is responsible for pending payments when adwords account is opened through my MCC

Visitor ✭ ✭ ✭
# 3
Visitor ✭ ✭ ✭

Thanks for your answer, this was very helpful!