When you’ll pay for your ads depends on how you pay for them. When you create your first ad on Facebook, you’ll add a payment method to your ad account, and that payment method determines your payment setting. There are two main payment settings for Facebook ads:
Automatic payments: We’ll automatically charge you whenever you spend a certain amount, known as your billing threshold, and again on your monthly bill date for any leftover costs. This is how you’ll pay if you use PayPal or most credit and debit cards to purchase ads.
Manual payments: You’ll add money to your account first, and then we’ll deduct from that amount up to once a day as you run ads. This is how you’ll pay if you use a manual payment method (like PayTM or Boleto Bancário) to purchase ads. With manual payments, you won’t have a billing threshold.
This article goes over when you’ll pay for ads if you’re using automatic payments and have a billing threshold. If you use a bank account (direct debit) or a manual payment method to pay for your ads, you don’t have a billing threshold. Learn more about how you’re charged for ads if you don’t have a billing threshold.
When you’re charged if you have a billing threshold
When you create Facebook ads, like boosting posts from your Page, you don’t pay for them right away. Instead, as they run, they accrue ad costs that you’ll be charged for later.
There are two ways you’ll be charged for these costs:
- Whenever you reach your billing threshold.
- On your monthly bill date.
What a billing threshold is and how it works
You can think of your billing threshold as a way to build up a good payment history with Facebook: It’s an amount you can spend on ads before we charge you for them. Whenever your ad costs reach your billing threshold, we’ll charge you for that amount. When you first start advertising on Facebook, your billing threshold will be automatically set to a small amount. But as you make successful billing threshold payments, it may be raised until your account reaches a final threshold amount.
As an example, let’s say you just created your first ad, and your ad account has a billing threshold of $25. As your ad runs, it’ll accrue costs. If your outstanding ad costs reach $25, we’ll charge you $25.
Once your payment goes through, your balance will be cleared, your billing threshold may be raised to a new, higher amount, and you’ll start accruing costs again as your ad continues to run. So in a given month, you could reach your billing threshold once, multiple times or not at all, depending on what your billing threshold is and how much money you’re spending on ads. This is also why you may be charged multiple times even if you’re running just one ad.