Facebook Ads can be a great way to reach new customers and promote your business, but they can also rack up costs quickly if you’re not careful. One important setting to be aware of is the billing threshold, which controls when Facebook will charge your payment method for ad spend.
What is the Facebook Ads billing threshold?
The billing threshold is the minimum amount of unpaid ad spend that must accrue before Facebook bills your payment method on file. The default billing threshold is $5.
So for example, if you spend $2 on ads on Monday and another $3 on Tuesday, your unpaid balance would be $5. Once you cross that $5 threshold, Facebook will bill your card on file to collect payment.
Where do you set the billing threshold?
The billing threshold is set at the ad account level, so the threshold will apply to all campaigns and ads running under that ad account.
To find the billing threshold setting:
- Go to the Ads Manager
- Click on the tools icon in the top right corner
- Select “Billing” from the dropdown menu
- Under “Payment settings” you will see the billing threshold
The threshold can be set as low as $1 or as high as $1000 in increments of $1. The default is $5.
Why increase the billing threshold?
Here are some reasons you may want to increase the billing threshold:
- To reduce the number of charges and transactions on your payment method
- If you are running many small ad campaigns and don’t want to be billed frequently for small amounts
- To have more flexibility with your ad budget before being billed
- To align billing with your invoicing or payroll schedule
Why lower the billing threshold?
Here are some reasons you may want to lower the billing threshold:
- If you have a limited ad budget and want to closely monitor spending
- To catch any unauthorized or accidental ad spend sooner
- If you prefer to pay ads off more frequently to avoid large lump sum bills
- To maximize credits from ad coupons – you must use credits before they expire
Best practices for setting a billing threshold
- Set a threshold that matches how closely you want to monitor ad spend
- Take into account your typical daily/weekly ad budget when setting a threshold
- Adjust as needed – you can change the threshold at any time
- Use thresholds strategically during key seasons or promotions
- Don’t set an excessively high threshold if you have limited funds for paying ads
What happens when you reach the billing threshold?
Once unpaid ad spend exceeds the billing threshold, here is what happens:
- Facebook bills the payment method on file for the full unpaid balance, not just the amount over the threshold.
- The unpaid balance resets to $0 immediately after billing.
- Spend accumulates again until the next threshold is reached.
- Facebook will send an email notification when you are billed.
- Charges appear on billing statements as “Facebook Ads.”
What if you go over your ad budget?
The billing threshold does not prevent you from spending over your ad budget. It is only the trigger for when you are charged for unpaid spend.
To avoid overspending your budget:
- Set an ad budget in your campaign at the ad set or campaign level.
- Actively monitor your spending and pause campaigns if needed.
- Use spending limits when possible – Facebook will then pause your ads when the limit is reached.
- Take advantage of automatic budget pacing by campaign objective.
- Use Facebook’s forecasting tools to predict estimated spend.
Other Facebook billing details
- Taxes and currency conversion fees may be added to billed amounts.
- Returned payments due to insufficient funds will result in ads being paused.
- Refunds can take 5-10 business days to process.
- Facebook does not provide invoices. Download billing statements from Ads Manager.
- Thresholds apply separately to each ad account.
Frequently Asked Questions
Can I check my current unpaid ad balance?
Yes, your unpaid ad balance is visible in the billing section of Ads Manager. It resets to $0 immediately after you are billed for reaching the threshold.
When will I be billed after reaching the threshold?
Facebook bills for unpaid ad balances once per day. So you can expect to be charged within 24 hours of crossing the billing threshold.
Can I pay my balance early?
No, there is no option to manually pay your unpaid balance before the threshold is reached. Facebook’s system will automatically bill your card when the threshold is exceeded.
What if my payment fails when billed?
If the payment method on file is invalid or rejected when Facebook attempts to bill you, your ads will be paused immediately. You will need to update your payment information and settle any outstanding balance before ads can resume running.
Can I change the threshold temporarily?
Yes, you can change your Facebook Ads billing threshold at any time in Ads Manager. The new threshold will apply immediately after saving.
What is the minimum billing threshold?
The minimum billing threshold on Facebook Ads is $1. So at the lowest, you will be billed once your unpaid balance exceeds $1.
What is the maximum billing threshold?
The maximum billing threshold is $1000. At this level, Facebook will allow up to $1000 in unpaid ad spend to accumulate before billing your payment method.
Conclusion
The Facebook Ads billing threshold controls when your payment method is charged for unpaid ad spend. The default is $5 but can be customized as needed. Raise the threshold to be billed less often, or lower it keep a tight leash on ad costs. Just be sure to actively monitor spend to avoid excess charges. Check your ad account’s billing settings to ensure the threshold aligns with your payment preferences and budget.