Google Ads is making a major change to its payment options, and advertisers need to take note. Starting from July 31, Google will no longer accept credit or debit card payments for Google Ads. This move is part of Google’s strategy to encourage high-spend advertisers to utilize more automated payment methods that are better suited for scaling ad investment.
Instead of card payments, impacted advertisers will only be allowed to use bank-based payment options going forward. These options include monthly invoicing with 30-day payment windows, which is Google’s recommended approach, and direct debit for automatic payments where available. Google claims that these options provide “flexibility” and “control” benefits for high-growth spenders.
While this change may create a more frictionless and automated monetization system for Google, it could pose issues for advertisers. The elimination of card payments removes a popular payment option that provides cashflow flexibility for some advertisers. This could result in account suspension and cashflow problems for those who rely on card payments.
Google has begun notifying impacted “high-growth” accounts about this change, although the specific criteria for being affected are unclear. Manager accounts must also update their billing centrally to comply with the new payment options.
The email sent by Google notifying advertisers of this change has sparked some negative reactions. Jeremy Brandt, founder of We Buy Houses, shared the email he received and expressed his dissatisfaction with the update. He believes that this change will cost his company over $250k per year and does not benefit the customer in any way. He predicts that this move may generate negative press and blowback that Google may not have anticipated.
Ginny Marvin, Google Ads Liaison, commented on the update, stating that the monthly invoicing billing method is best suited for high-growth customers. She also mentioned that Google has launched new tools and features to help customers transition to the new payment options with minimal disruption to their accounts.
Impacted advertisers have until July 31 to update their billing methods before potentially facing ad account suspensions. It is crucial for advertisers to take action and ensure that they comply with Google’s new payment requirements to avoid any disruptions to their advertising campaigns.
In conclusion, Google’s decision to discontinue acceptance of card payments for Google Ads is aimed at encouraging high-spend advertisers to adopt more automated payment methods. While this change may streamline the monetization process for Google, it could pose challenges for advertisers who rely on card payments for cashflow flexibility. It remains to be seen how this change will ultimately impact advertisers and whether Google will face any backlash from affected businesses.
