Google is informing some advertisers that they must switch from using credit or debit cards to bank-based payment options for Google Ads by July 31 to avoid account suspension. This change is part of Google's strategy to encourage high-spend advertisers to adopt more automated payment methods that are better suited for scaling ad investments.

Impacted advertisers will need to use the following bank-based payment options:

• Monthly Invoicing: Google's recommended approach with 30-day payment windows.
• Direct Debit for Automatic Payments: Where available.

Credit and debit cards will no longer be accepted, as Google claims this provides more "flexibility" and "control" for high-growth spenders. While this system aims to create more frictionless, automated monetization for Google, it could lead to account suspensions and cashflow issues for advertisers. The change removes a popular payment option that offers cashflow flexibility via cards for some advertisers.

Who is Affected

Google is notifying "high-growth" accounts throughout 2024, though specific criteria like spend thresholds are unclear. Manager accounts must also update billing centrally.

The Email & Reaction

Jeremy Brandt, founder of We Buy Houses, shared an email he received and expressed dissatisfaction:

This change will cost us $250k+ per year. It does not benefit the customer in any way. In speaking with other business owners, I think this is going to cause a lot more negative press/blowback than may have been expected.

Google informed impacted advertisers that "The Monthly Invoicing billing method is best suited for your account(s) given the flexibility it provides high-growth customers."

Ginny Marvin, Google Ads Liaison, posted about the update on X:

We notified a small segment of advertisers that the billing options available for their Ads accounts are changing. This means that some customers will move to bank payments via monthly invoicing or direct debit from a bank account. To make this transition as easy as possible, we already launched new tools and features to help customers through this process and to ensure minimal disruption to their accounts.

The deadline for impacted advertisers to update their billing methods is July 31, after which they may face potential ad account suspensions.