Do you pay for Facebook ads before or after?

Facebook advertising can be an effective way for businesses to reach potential customers. However, one key decision businesses need to make is whether to pay for Facebook ads upfront or after the ad campaign has run.

Should you pay upfront or after for Facebook ads?

There are pros and cons to both options. Paying upfront means you know exactly how much budget you have allocated and avoids any unexpected charges. However, paying after means you only pay for the ads that actually delivered results.

Ultimately, there is no definitive right or wrong answer. It depends on your business’s needs and preferences. Here are some key factors to consider when deciding:

Paying upfront pros:

Get locked-in rates – Paying upfront means the rates are locked in. Facebook ad prices can fluctuate over time, so paying upfront guards against prices increasing later on.
Easier budgeting – You know exactly how much the campaign will cost upfront, making financial planning and budgeting simpler.
Avoid billing surprises – Paying upfront avoids getting any unexpected extra charges on your bill once the campaign has run.

Paying upfront cons:

Less flexibility – The budget is fixed upfront, reducing your flexibility to make changes or increase/pause spend.
Risk overpaying – You may end up overpaying if the campaign underperforms or you need to pause it early.
Need available capital – Paying the full amount upfront requires having those funds readily available.

Paying after pros:

Only pay for results – You only pay for the ads that have actually delivered results after they run.
Flexibility – You can adjust daily budgets as needed without unused ad spend.
Requires less upfront capital – You don’t need all the campaign budget upfront to get started.

Paying after cons:

Possibility of unexpected charges – You may get billed more than expected if the campaign performs above expectations.
No locked-in rates – Facebook ad prices may increase while campaign is running.
Harder financial planning – Total cost is unknown upfront making budgets harder.

When does it make sense to pay upfront?

Paying for Facebook ads upfront often makes the most sense in these situations:

Running an aggressive, high-budget campaign where you need to allocate significant funds upfront.
Want to lock-in fixed CPM and CPC rates for the duration of the campaign.

There are special discounts or incentives for paying upfront.
Don’t want any surprises or unexpected charges on your billing.
Your business requires strict financial planning and predictable costs.

In general, larger brands and companies that run very large campaigns may benefit most from paying upfront. The predictability and financial planning can outweigh the reduced flexibility.

When does it make sense to pay after?

Paying for Facebook ads after delivery makes the most sense in these cases:

Running an experimental or exploratory campaign with an uncertain budget need.

Want the flexibility to change budget allocations as the campaign progresses.
Cash flow and budget availability is tighter so you can only pay as you go.
Are testing out Facebook ads for the first time and uncertain how well they will perform.

Overall budget available is limited so you want to pay strictly for measurable results.

Smaller companies or those running more experimental ad campaigns often benefit from the flexibility of paying after. You avoid overpaying for underperforming ads.

What payment methods does Facebook accept?

Facebook provides multiple payment method options when setting up advertising accounts:

Credit card – All major credit cards including Visa, MasterCard, American Express and Discover are accepted by Facebook.
Debit card – Can be used to pay directly from your bank account.
Online bank transfer – Link your bank account to transfer funds into your Facebook advertising account.

Facebook invoice – Request a monthly invoice after running ads instead of automatic payment.
Prepayment – Deposit funds upfront to draw from as your ads run.

Credit cards, debit cards, and bank transfer allow automatic payments as your ads run. Facebook invoices and prepayment require manually topping up your ad account balance.

How do Facebook payment invoices work?

Facebook payment invoices allow advertisers to pay on a monthly basis after their ads have run instead of automatic payments. Here’s an overview of the invoicing process:

Enable invoice payment when setting up ad account.
Run advertising campaigns up to your assigned credit limit.

Facebook bills you monthly for ad spend from previous month.
Make payment within 14 days of receiving invoice.
Late fee of 1.5% per month applies to overdue invoices.

Credit limit may be reduced or account disabled if invoices repeatedly paid late.

The ability to request Facebook invoices is only available for larger, established advertisers spending a minimum of $5000 per month. There is an application process to get approved for invoicing.

What are Facebook’s payment policies?

It’s important to understand Facebook’s payment policies when paying for ad campaigns. Here are some key policies to be aware of:

Payment methods may be declined if considered high-risk or for policy violations.
Facebook Ads Manager accepts 140+ currencies for ad payment.
Advertisers are responsible for any third party payment processor fees.

Ongoing ad delivery requires keeping your payment method up to date.
Accounts with unpaid charges may be suspended until resolved.
Refunds are not available for promotional ad credits or one-time payments.

Be sure to maintain an active payment method in good standing to prevent your ad account from being interrupted. Facebook’s support articles provide more details on their payments policies.

Can you get Facebook ad credits?

Yes, Facebook does offer promotional ad credits and coupons in some situations:

New ad account credits – Facebook provides $100 in free ad credits when you first set up an ad account and add payment info.

Account management credits – Additional credits may be offered if you work directly with a Facebook account manager.
Event credits – Attending Facebook marketing events can qualify for ad credits.
Bug bounty rewards – Reporting qualifying bugs in Facebook ads may be rewarded with ad credits.

Coupons and vouchers – Facebook occasionally offers one-time use coupons via email or account managers.

However, these credits cannot be redeemed for cash and often have restrictions on use. They are meant to encourage first time advertisers or reward helpful activities like bug reporting.

Can you get a refund for Facebook ads?

Facebook does not generally provide refunds for paid advertising spend. However, refund requests may be considered in limited specific circumstances:

Technical errors on Facebook’s side prevented ads from running correctly.
Ads were incorrectly disapproved against Facebook’s ad policies.
There was an accidental or unauthorized spend from the account.

Refunds are not provided if you simply want to cancel an ad campaign early or are unsatisfied with the results. Facebook recommends disabling campaigns and ads instead of requesting a refund.

To request a refund, you must submit a case within 3 days of the spend you wish to dispute. However, approval is not guaranteed even for qualifying requests. Be sure to review Facebook’s full refund policies before running paid campaigns.

What happens if you don’t pay your Facebook ad invoice?

If you fail to pay Facebook ad invoices within the required timeframe, here are the potential consequences:

Your advertising campaigns will be paused immediately and unable to run until paid.
1.5% monthly late fee applied to unpaid balance.
Loss of ability to make API calls or use advanced tools.

Reduction in future ad spending limits and credit.
Full account suspension until balance is paid off.
Being blacklisted from future Facebook advertising.

It’s critical for long-term business account stability to make sure your Facebook invoices are paid promptly. Otherwise your current and future advertising efforts can be severely disrupted.

Can you dispute a Facebook ad payment?

Yes, advertisers can dispute a Facebook ad payment in certain situations:

There was an unauthorized payment made from your account.

You were charged multiple times incorrectly for the same ad spend.
Facebook’s system incorrectly calculated the amount owed.
Payment was made but Facebook’s system did not register it correctly.

To dispute a payment, you must submit a case within 3 days of the transaction date. You will need to provide any evidence available, like screenshots and transaction IDs, to support your dispute.

However, Facebook does not allow disputes solely because you are unsatisfied with ad performance or made a spending mistake. Make sure to review the payment dispute guidelines first.

Should you use a separate payment method for Facebook ads?

Using a separate dedicated payment method like a credit card just for your Facebook advertising spend can have some benefits:

Simplifies tracking and accounting of ad costs separately from other business expenses.
Avoids any potential disruption to other payment methods if Facebook ad account is suspended.
Lets you set specific spending limits and controls for Facebook ad budgets.

Prevents any issues from arising if personal and business expenses are mixed.

However, it also means managing an additional payment method which may not be necessary for smaller ad budgets. Evaluate whether the simplicity of a dedicated payment method is worth the extra overhead.

How can you optimize Facebook ad costs?

Some tips to optimize and reduce your Facebook ad spending:

Use detailed targeting to avoid wasted spend showing ads to irrelevant audiences.
Create lookalike audiences modeled off your existing customers.
Test different bidding strategies such as lowest cost bidding.

Set daily and overall campaign budgets to cap spending.
Pause poorly performing ads instead of wasting budget.
Analyze reports to identify your best performing ad sets.

Make incremental improvements to ads and targeting over time.

It requires ongoing testing, measurement and optimization to get the most return from your Facebook ad investment. Continually refine campaigns to lower cost per result over time.

Conclusion

Deciding whether to pay for Facebook ads upfront or after they run depends on your specific priorities and situation as a business. Generally, larger brands benefit from upfront payment while smaller companies are better off paying as they go. Be sure to factor in cash flow needs, desire for predictable spend, and required budget flexibility. Maintaining an active payment method in good standing is essential for avoiding disruptions. With some strategic planning and optimization, Facebook ads can deliver strong returns on investment.