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AdWords Express - Billing Overview

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AdWords Express - Billing Overview Express Pro.Neetu 9/6/12 2:24 AM
Hello Everyone, 

Today, I will be giving you all a quick overview of AdWords Express Billing. In the weeks to come, I will be adding more posts on Billing. So, do watch out :)

(a)  Overview

To start with, here are some important points to keep in mind when setting up your AdWords Express billing information:

  • Your monthly budget: Your monthly budget is an amount that you set for each of your AdWords Express ad to specify how much you'd like to spend each month. And, your monthly budget will ensure that in a calendar month you don’t accrue costs more than the set monthly budget. To learn about your AdWords Express monthly budget and how it works, you can also read this post on our Google Business Help Forum

  • How you pay (payment settings): This is how you make your payments. With AdWords Express, you can make payments before your ads show (Manual payments/Prepay) or make payments after your ads show, and have those payments made automatically (Automatic payments/Threshold).

  • Your form of payment: This is what you use to pay your costs, such as a credit or debit card.


(b) Difference between Automatic Payments (Threshold) and Manual Payments (Prepay)

- Automatic Payments/Threshold

If remembering when to make payments isn't on your list of favorite things to do, then automatic payment setting is a great choice :)

If you select Automatic Payments, you'll make payments only after you accrue advertising costs. You'll be billed 30 days after your last payment or when your account costs reach your billing threshold, whichever comes first.

Example

So, let's say that advertiser Alan opens an AdWords account and starts accruing costs on Oct. 1:

On Oct. 5, Alan reaches his initial billing threshold of US$50. At that time, we charge him for the amount accrued (which might be in slight excess of the billing threshold if he accrued costs quickly). Alan's billing threshold is increased to US$200. A new billing cycle begins.

  • On Oct. 25, Alan reaches his new billing threshold of US$200, triggering AdWords to charge him for costs accrued. Google again raises his billing threshold to US$350, and initiates a new billing cycle.
  • On Nov. 18, Alan accrues more than US$350 in charges. Google bills him and raises his billing threshold to US$500.
  • Alan's next bill will be processed on Dec. 18 or when he exceeds the final US$500 billing threshold - whichever comes first.

Note: The threshold limits will be scaled depending on your region and local market equivalent.

Further, please keep in mind that Google currently offers two types of Automatic Payments:

  • Credit and debit card: If you choose this option, your ads will typically begin running almost immediately after you enter valid credit or debit card information. All charges will be made to this card.

  • Direct debit: If you choose this option, Google will deduct payments from your bank account. In this case, you may be required to submit a debit authorization or verify a test deposit before your ads can run.

Also, if you use Automatic Payments, we recommend you to enter a backup credit card in your account. This is because if your primary form of payment is ever declined, we'll attempt to charge your backup credit card to help ensure that your ads run continuously and if you wish to add a back up card, please follow the steps here

- Manual Payments/Prepay

If you select Manual Payments, you'll pay for advertising in advance of your advertising activity. You can add funds to your account whenever you like, and we'll deduct costs from that balance as you accrue costs. We'll notify you when your balance is running low and if you run out of funds, your ads will stop showing until you make another payment.

Google offers two widely available types of Manual Payments:

  • Credit and debit card: If you choose this option, Google will charge your credit or debit card in the amount that you specify, and your account balance will update almost immediately.

  • Bank transfer: If you choose this option, you'll make payments by transferring funds from your bank account to Google's bank account. Your ads will typically begin running as soon as we receive and process your payment. This typically takes 5 to 10 business days, depending on your country and what bank you use

(c) Difference between Monthly Budget and Billing Cycle

As mentioned above, please know that your monthly budget is an amount that you set for each of your AdWords Express ad to specify how much you'd like to spend each month. And, your monthly budget will ensure that in a calendar month you don’t accrue costs more than the set monthly budget. So if you have set $X as your monthly budget for your AdWords Express ad, you can be assured that in a month (say June, July etc) you will be never charged more than $X

Your Billing Cycle comes into picture only if you have chosen ‘Automatic Payments’ as your form of payment. This is because with ‘Manual Payments’ you pay for advertising in advance of your advertising activity and we only deduct costs from that balance as you accrue costs.

Instead, with Automatic Payments - you are billed either after 30 days after your last payment or when your account costs reach your billing threshold and as and when you accrue costs equivalent to the threshold limit, your billing threshold is increased and you will be then next charged either when you accrue costs equivalent to the new threshold limit or after 30 days since your last payment, whichever comes first.

**Manual Payments/Prepay may not be available as a payment option during sign up in some regions. However after sign up, you will be able to switch back to Manual Payments and if you wish to do so, please contact our support team via this link               
                                                   
I hope this post was helpful :) Please feel free to leave your comments here and I'll get back to you at the earliest! 

Cheers!

Neetu Kurian
AdWords Express Specialist






Re: AdWords Express - Billing Overview Eric Worral 8/8/13 7:13 AM
Neetu,

Can you explain to me why there are two separate functionalities/systems for Google adwords.

There is google adwords where you can pause and cancel campaigns and then the very similarly named Google Adwords express.

If I want to cancel my adwords express account I need to go into my Google adwords account but I can't pause and or cancel campaigns on Google adwords express through Google adwords.

Maddening.... I lost $500+ to Google adwords the last two months because I kept logging into my google adwords account instead of express account to see there was no active campaign.

I was told tough cookies on the phone and told I could not speak with a specialist and was politely hung up on.

I find it incredibly confusing and ambiguously unethical that you use two separate accounts for billing purposes.

Re: AdWords Express - Billing Overview `Keenan 8/8/13 9:02 AM
Eric - as far as Google is concerned these are two different products, thus you have to manage them separately.  It's always been like that.

Up until a few months ago you could see the AWX campaign stats in your AW dashboard, but you could not manage the campaign there so you would not have been able to save any changes if you wanted to.  And now the AWX stats have been completely removed.  

You can cancel or pause your AWX campaign by logging in through google.com/adwords/express/ as I'm sure you're aware.