How does the prepaid payment method work in Google Ads?

The prepaid payment method in Google Ads allows you to pay for your advertising upfront, rather than having Google charge your payment method automatically based on your usage. This can help you control your budget and avoid unexpected charges.

Here's how it works:

🏦 Prepaid Payment Method Overview
With a prepaid payment method, you add funds to your Google Ads account before running ads. Your ads will be served based on the funds available in your account, and once your balance runs low or hits $0, the ads stop running until you add more funds.

💳 How to Set Up Prepaid Payments
Go to your Google Ads account:

Log in to your Google Ads account.

Select Billing Settings:

Click on Tools & Settings (wrench icon in the top right).

Under Billing, choose Billing Settings.

Choose Prepay:

In the Billing Summary section, click Payment Methods.

Select Prepaid and follow the prompts to set it up.

You'll need to add funds to your account using a valid payment method (credit card, debit card, or bank account).

💸 How Funds are Used
Once you've prepaid a certain amount, Google will start charging your ads based on your usage.

Ads will run until your balance reaches $0, at which point your ads stop running.

You can set a daily or lifetime budget to manage your funds effectively.

🔄 Prepaid vs. Postpaid (Credit) Payment Methods
Prepaid: You pay in advance, and your balance is used as your account credit. Ads stop running when the funds are used up.

Postpaid (Credit): Google charges your linked payment method periodically (e.g., monthly or when a threshold is reached) based on your ad spend.

🏁 Limits and Spending Control
Control your ad spend: You are limited to only the amount you prepay, which helps prevent overspending.

No unexpected charges: Since you prepay for ads, there's no need to worry about exceeding your credit card limit or unexpected charges to your payment method.

💡 Important Points About Prepaid Payments
Refill Anytime: You can add more funds whenever you want, and your ads will keep running until the balance runs out.

No Credit or Billing Cycle: Google doesn't bill you for services at the end of the month — your payments are directly tied to the prepaid amount.

Currency Considerations: Payments are typically made in the currency associated with your account, so you'll need to consider exchange rates if paying in a different currency.

✅ Benefits of Prepaid Payment Method
Full control over your budget: You decide how much to spend upfront.

No surprises: Since payments are made in advance, you won't get unexpected charges.

Safer for small budgets: Prepaying helps you keep track of smaller, more manageable budgets for your campaigns.

⚠️ Things to Keep in Mind
Funds will expire: In some cases, prepaid funds may expire if you don't use them within a certain time (Google's policy may vary by country).

No automatic refills: You'll need to manually add funds when your balance runs low or is depleted.

Ad pause on low balance: If you don't add more funds, your ads will stop running until you replenish your balance.