How does automatic billing work on Facebook Ads?

Automatic billing on Facebook Ads means that your account is charged automatically based on the payment method you've selected, either when your spend reaches a certain threshold or at regular intervals. Facebook offers two main billing methods: prepaid and postpaid billing, both of which work with automatic billing.

How Automatic Billing Works on Facebook Ads:
1. Billing Threshold (Postpaid)
If you're on a postpaid billing system, Facebook charges you once your ad spend reaches a certain threshold (the default is usually around $25 or $50, but it can vary).

Once you reach your threshold, Facebook will automatically charge your payment method for that amount.

After the payment is processed, the threshold is reset.

Facebook will keep trying to charge your card if it fails due to an expired card, insufficient funds, or any other issue. Ads will pause until payment is successfully processed.

2. Daily Billing (Postpaid)
For some advertisers, Facebook charges them daily for their ad spend. Facebook will charge your payment method based on your daily spending cap or the billing threshold.

3. Prepaid Billing
With prepaid billing, you add funds to your Facebook Ads account before you start running ads.

Your account balance will be depleted as you spend on ads.

Once the balance is used up, your ads will pause until you add more funds.

4. Billing Cycle (Invoice)
If you've set up an invoice-based payment system, you'll be billed at the end of the month or once your spending exceeds a specific limit. Invoices are sent automatically, and you can find them in the Billing Section of Ads Manager.

Your credit card or other payment methods will be charged according to the spending on that invoice.

When Does Facebook Charge You?
Postpaid: Facebook charges you automatically when your ad spend reaches your billing threshold or at the end of the monthly billing cycle.

Prepaid: You're charged upfront and can continue using Facebook Ads until your balance runs out.

What Happens if Automatic Billing Fails?
If Facebook can't charge your payment method due to issues like insufficient funds or expired card details:

Ads Pause: Your ads will be paused.

Retries: Facebook will attempt to charge you again. If you're on postpaid billing, this will happen multiple times.

Account Restrictions: If payment issues continue, Facebook might restrict your account from running ads until the issue is resolved.

Account Suspension: If payment problems persist for a long period, Facebook could suspend or disable your ad account.

How to Manage Automatic Billing:
View Billing Settings: Go to Facebook Ads Manager, then click Billing.

Update Payment Methods: Make sure your payment method (credit card, PayPal, etc.) is up to date.

Set Budget and Limits: Ensure your daily or lifetime budget aligns with what you can afford to spend.

Review Billing Threshold: If you prefer to be charged more frequently, review your billing threshold and adjust it accordingly.

Advantages of Automatic Billing:
Convenience: Once set up, Facebook automatically handles payments, so you don't have to worry about manually making payments.

Continuous Ad Running: Ads can run without interruption as long as you meet the payment thresholds.

Tips for Managing Automatic Billing:
Monitor Your Spending: Check your billing section regularly to track how much you're spending and ensure it aligns with your advertising goals.

Add Backup Payment Methods: Having a backup payment method can prevent ad disruptions in case the primary payment fails.