What is the Google Ads billing system?

Google Ads operates on a billing system where advertisers are charged for their advertising costs based on their chosen payment method and billing settings. Here's an overview of how the Google Ads billing system works:

### 1. **Payment Methods:**
   - **Credit/Debit Cards:** Advertisers can link their credit or debit cards to their Google Ads account for automatic payments.
   - **Bank Accounts:** Some countries allow direct debit from bank accounts for automatic payments.
   - **Manual Payments:** Advertisers can manually add funds to their Google Ads account using bank transfer, wire transfer, or other accepted payment methods.

### 2. **Billing Options:**
   - **Automatic Payments:** Advertisers accrue costs as they run ads, and Google automatically charges the payment method when the billing threshold is reached (typically once a month or when a set amount is reached).
   - **Manual Payments:** Advertisers prepay for Google Ads costs, and ads run until the prepaid funds are exhausted. Advertisers need to manually add more funds to continue running ads.

### 3. **Billing Threshold:**
   - For accounts using automatic payments, Google sets a billing threshold based on account history, spending behavior, and payment history. The threshold determines when Google charges the payment method (e.g., when costs reach $50 or another specified amount).

### 4. **Billing Cycles:**
   - Google Ads operates on a monthly billing cycle for automatic payments, where costs accrued during the billing cycle are charged at the end of the cycle or when the billing threshold is met.
   - Manual payments are deducted from prepaid funds until the account balance runs low, prompting the need to add more funds.

### 5. **Invoicing and Statements:**
   - Google provides invoices and billing statements that detail costs incurred, payments made, and any adjustments for each billing period.
   - Invoices are available for download in the Google Ads billing section and can be used for accounting and reconciliation purposes.

### 6. **Payment Verification:**
   - Google Ads may require payment verification for new accounts or when significant changes occur in billing settings to ensure security and prevent fraud.

### 7. **Tax and Legal Considerations:**
   - Advertisers are responsible for understanding and complying with tax regulations related to advertising expenses in their respective jurisdictions.
   - Google Ads applies applicable taxes based on the advertiser's location and tax regulations.

### 8. **Billing Support:**
   - Google Ads provides customer support for billing-related inquiries, including issues with payments, invoicing, and account balances.

### Conclusion:
Understanding the Google Ads billing system is crucial for advertisers to manage their advertising expenses effectively. Advertisers can choose payment methods and billing options that best suit their needs and budget, ensuring smooth operation of their Google Ads campaigns while maintaining financial control.