Google is notifying some advertisers that they must stop paying for Google Ads by credit or debit card by July 31 or face account suspension.
The general picture. The move is part of Google’s effort to steer high-spending advertisers toward more automated payment methods better suited to increasing ad spend.
Details. Affected advertisers will only be able to use bank-based payment options from now on:
Monthly billing (Google’s recommended approach) with 30-day payment windows Automatic direct debit for automatic payments, when available
Cards will no longer be accepted for these accounts, which Google says offer “flexibility” and “control” benefits for high-growth consumers.
Why we care While this creates a system for more automated and frictionless monetization for Google, it could lead to account suspension and cash flow issues for advertisers.
The catch While more automated, the change removes a popular payment option that provides cash flow flexibility via cards for some advertisers.
Who is affected Google will notify affected “high growth” accounts throughout 2024, though criteria such as spending thresholds are unclear. Manager accounts must also update billing centrally.
The email and the reaction. Jeremy Brandt founder of We Buy Houses shared email he recived:
Brandt is not happy with this update:
“This change is going to cost us over $250,000 a year. It doesn’t benefit the customer in any way. In talking to other business owners, I think this is going to get a lot more negative press than expected.”
What they are saying “The monthly invoicing billing method is the best fit for your accounts, given the flexibility it offers high-growth customers,” Google told affected advertisers.
Ginny Marvin, Google Ads Link, posted about upgrading to X:
“We notified a small segment of advertisers that the billing options available for their ad accounts are changing. This means some customers will switch to bank payments via monthly billing or direct debit from a bank account. Because To make this transition as smooth as possible, we’ve already launched new tools and features to help customers through this process and to ensure minimal disruption to their accounts.”
What follows July 31st is the deadline for affected advertisers to update their billing methods before facing potential ad account suspensions.
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