Google is notifying some advertisers that they must transition away from paying for Google Ads via credit or debit card by July 31 or face account suspension.
The big picture. The move is part of Google’s effort to steer high-spend advertisers toward more automated payment methods better suited for scaling ad investment.
Details. Impacted advertisers will only be allowed to use bank-based payment options going forward:
Monthly Invoicing (Google’s recommended approach) with 30-day payment windows
Direct Debit for Automatic Payments, where available
Cards will no longer be accepted for these accounts, which Google says provides “flexibility” and “control” benefits for high-growth spenders.
Why we care. While this creates a system for more frictionless, automated monetization for Google, this could lead to account suspension and cashflow issues for advertisers.
The catch. While more automated, the change eliminates a popular payment option that provides cashflow flexibility via cards for some advertisers.
Who is affected. Google is notifying impacted “high-growth” accounts throughout 2024, though criteria like spend thresholds are unclear. Manager accounts must also update billing centrally.
The email & reaction. Jeremy Brandt founder of We Buy Houses shared the email he received:
Brandt isn’t happy with this update:
“This change will cost us $250k+ per year. It does not benefit the customer in any way. In speaking with other business owners, I think this is going to cause a lot more negative press/blowback than may have been expected.”
What they’re saying. “The Monthly Invoicing billing method is best suited for your account(s) given the flexibility it provides high-growth customers,” Google told impacted advertisers.
Ginny Marvin, Google Ads Liaison, posted about the update on X:
“We notified a small segment of advertisers that the billing options available for their Ads accounts are changing. This means that some customers will move to bank payments via monthly invoicing or direct debit from a bank account. To make this transition as easy as possible, we already launched new tools and features to help customers through this process and to ensure minimal disruption to their accounts.”
What’s next. July 31 is the deadline for impacted advertisers to update billing methods before facing potential ad account suspensions.
Search Engine Land