About Payment Thresholds

About Payment Thresholds

This article is intended for advertisers who use an automatic payment method to pay for their ads. If you need help with billing and currently pay for ads with a bank account or manual payment method, see How ad billing works on Facebook instead.

As you run ads on Facebook, you accrue ad costs. A payment threshold is an amount that you can spend on ads before we charge you. Whenever your ad costs reach your payment threshold amount, we charge you for that amount. It determines when you’re charged for your ads based on the amount you spend.

When you first start advertising on Facebook, your payment threshold is automatically set to a small amount. As you make successful payments, your balance is cleared. The payment threshold may be raised until your account reaches a final threshold amount. You can think of your payment threshold as a way to build up a good payment history with Facebook.

As an example, let’s say you just created your first ad and your ad account has a payment threshold of $25. As your ad runs, it accrues costs. If your outstanding ad costs reach $25, [Facebook] charge you $25.

Once your payment goes through, your balance is cleared, your payment threshold may be raised to a new, higher amount. You start accruing costs again as your ad continues to run.

So, in a monthly billing period, you could reach your payment threshold once, multiple times or not at all, depending on what your payment threshold is and how much money you’re spending on ads. This is why you may be charged multiple times in a given month even if you’re running just one ad. It’s also why you may be charged after you purchase ads or even after you’ve stopped running them.