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. This move is part of Google’s effort to steer high-spend advertisers toward more automated payment methods better suited for scaling ad investment.
The Impact
Impacted advertisers will only be allowed to use bank-based payment options going forward:
- Monthly Invoicing: Google’s recommended approach is offering 30-day payment windows.
- Direct Debit for Automatic Payments: Available where applicable.
Cards will no longer be accepted for these accounts. Google claims this shift provides “flexibility” and “control” benefits for high-growth spenders.
Why This Matters
While this change could streamline the monetization process for Google through more frictionless, automated systems, it may also result in account suspensions and cash flow issues for advertisers who rely heavily on credit card payments.
The Catch
Although the new automated system offers potential convenience, it eliminates a popular payment option that some advertisers use for cash flow flexibility.
Who is Affected
Google is notifying impacted “high-growth” accounts throughout 2024. However, the specific criteria, like spending thresholds, remain unclear. Manager accounts must also update billing centrally.
This change underscores Google’s commitment to enhancing payment processes but necessitates attention from advertisers to avoid any disruptions.
Here’s the tweet from Jeremy Brandt;
@GoogleAds is force-converting thousands of advertisers from credit card payments to ACH/Invoice billing only. Suspension of account if you don't comply.
— Jeremy Brandt (@JeremyBrandt) June 13, 2024
Is Google really hurting that much they need to save the extra 2-3%?@mrdannygoodwin @rustybrick pic.twitter.com/hMdgwe9xLy
Brandt Also contacted their card processing company i.e. American Express, here’s what they replied;
Update from our American Express Rep: Thanks Jeremy, I just spoke with the Google Team here at American Express and they are VERY aware of this and have actively been working with Google to address the exact concerns – on behalf of our Cardmembers – that you outlined. I’m sharing your email and verbatims with them too.
Source: X.com
What Google Said
Adsliason from Google Ads replied with the following tweet;
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…
— AdsLiaison (@adsliaison) June 14, 2024
The deadline for impacted advertisers to update their billing methods before facing potential ad account suspensions is July 31.
