Find out the benefits and drawbacks of Google Ads Postpay and Prepay, and learn which payment method is best for you based on my own experience.
Google Ads: Postpay vs. Prepay
Which Payment Option Should You Choose?
Google Ads has recently added the Postpay billing option in some areas. This lets advertisers run ads first and pay later. Postpay may seem like a good idea, but the real question is whether it's right for you or if you should stick with the old-fashioned Prepay method. Let's look at the differences to help you make a choice.
What is Postpay? 💡
With Postpay, you can run your ads and then pay your bill after you reach a certain amount or at the end of the month. Google keeps track of how much you spend on ads and charges your linked payment method automatically when you reach the limit or the billing date.
How It Works:
- ✅ You set up your campaign without pre-loading money.
- ✅ Google charges your card or payment method after your spend reaches a specific threshold.
- ✅ The threshold may start small and increase over time based on your payment history.
The Pros 👍
- Convenience: No need to top up your account.
- Continuous Ads: Campaigns never pause due to low balance.
- Cash Flow Friendly: Pay after generating leads or sales.
The Cons 👎
- Multiple Charges: If your threshold is low, you might get billed several times a month.
- Invoicing Hassle: More invoices can create additional accounting work.
- Overspending Risk: Without a prepaid cap, costs can exceed your budget.
Prepay vs. Postpay: A Quick Comparison
| Feature | Prepay | Postpay |
|---|---|---|
| When You Pay | Before ads run | After ads run |
| Risk of Paused Ads | Yes, if funds run out | No |
| Billing Frequency | Once per top-up | Multiple times if threshold is low |
| Best For | Strict budget control | Convenience and scaling |
My Personal Experience
When I first tried Postpay, my billing limit was very low. This meant that I had to pay three or four times in one month. The payment itself went smoothly, but it made bookkeeping more difficult because I had to keep track of and file several invoices for the same period.
The confusion about how much I spent on ads was even more annoying. I had trouble figuring out how much I had spent and what my current balance was. I also saw two random deductions that didn't make sense. This lack of clarity was a big problem.
I switched back to Prepay after two billing cycles. But I found out that Google no longer lets you switch with just one click. Instead, I had to send them a request and wait for them to look it over. Postpay might be great for advertisers with big campaigns, but for me, the ease of use was completely outweighed by the paperwork and lack of financial transparency.
Final Thoughts and a Pro Tip
Both Postpay and Prepay have their advantages. Postpay offers convenience and uninterrupted campaigns, while Prepay provides more control and simpler accounting. If you are scaling fast and need to keep campaigns running at all costs, Postpay might be the way to go. If you value tight financial control and minimal paperwork, Prepay remains a solid choice.
💡 Pro Tip: If you do try Postpay and decide to switch back, be prepared for a bit of a process. Google now requires a request and review to change back to Prepay in many cases, so don't assume you can flip a switch immediately.
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