What is a billing threshold in Google Ads?

A billing threshold in Google Ads refers to the minimum amount that your account must accrue before Google Ads charges your payment method. It applies to accounts on postpay billing, where you are billed after your ads are shown.

How the Billing Threshold Works:
Accruing Charges: As your ads run, charges accumulate in your Google Ads account. The billing threshold is the point at which Google will automatically charge your account for the ad spend that has accumulated.

Automatic Payments: Once your account balance reaches the threshold, Google Ads automatically processes a payment from your primary payment method (e.g., credit card, bank account, etc.) to cover the charges.

Threshold Increase Over Time: Initially, the threshold might be relatively low (e.g., $50 or $100), but as your account builds a good payment history, Google may increase the threshold. This is done to make billing more convenient for regular users who frequently run ads.

How the Billing Threshold Works in Detail:
First Payment: When you first start using Google Ads, your threshold may be set low (e.g., $50 or $100). After the accumulated charges hit that amount, your payment method will be charged.

Subsequent Payments: Once you've made a few payments and built up a positive payment history with Google Ads, your threshold might increase. For example, Google might increase it to $200, $500, or even higher, depending on your account's history.

Billing Cycle: You can be billed at any time once your account balance reaches the threshold. If your ads are running continuously, your threshold can be reached multiple times per month.

Billing Threshold Example:
Threshold of $100: Suppose your threshold is set to $100. As you run ads, Google Ads tracks the charges. Once your charges reach $100, Google will automatically charge your payment method for the $100.

If your account continues to accrue charges, Google will continue to automatically bill you each time your balance exceeds the threshold. If you have a high ad spend, the threshold will be met more frequently.

Benefits of the Billing Threshold:
Flexibility: You don't have to prepay for Google Ads; charges are only incurred when your account hits the threshold.

Automatic Billing: The process is automatic, meaning you don't have to manually make payments once the threshold is met.

Payment History: Google uses your payment history to assess whether to increase your threshold, meaning accounts with a good track record can benefit from higher thresholds, reducing the frequency of payments.

Threshold Increases Over Time:
If you consistently pay your bills on time and spend more on ads, Google Ads might raise your threshold to allow for larger automatic payments.

However, if you fail to make timely payments, your threshold may be lowered, and you could be charged more frequently.

How to Check Your Billing Threshold:
Sign in to your Google Ads account.

Click the tools icon (wrench symbol) in the top-right corner.

Under Billing, select Billing & Payments.

In the Billing Summary or Payment History section, you should see your current billing threshold.

Important Notes:
If your payment method is declined, you might reach the threshold but still not be able to pay, which could lead to your ads being paused until you resolve the payment issue.

Threshold resets: Your billing threshold can reset monthly, meaning a new threshold amount will be set at the beginning of each billing cycle.