The payment threshold is a fundamental concept you need to grasp when running Facebook ads. However, many people are still unclear about this concept. Some see an “Edit” button in the payment threshold section, click on it, and enter a number, but in reality, the payment threshold will not change this way. In today’s article, Optimal Agency will instruct you about the payment threshold and how to ask to raise the payment threshold for Facebook.
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About the payment threshold for Facebook
For those new to running Facebook ads, the concept of a payment threshold might be unfamiliar. To optimize your ad budget, it’s essential to understand this concept. The Facebook payment threshold works as follows: When you run Facebook ads, the ad costs accumulate to a certain level before Facebook bills you. This level is the payment threshold. According to Facebook’s guidelines, the payment threshold is the amount you can spend on ads before Facebook requires payment. In other words, Facebook “lends” you a certain amount to run ads, and this amount increases based on your credibility. When your ad costs reach this threshold, it’s time to pay Facebook.
Types of Facebook payment thresholds
The Facebook payment threshold is the maximum amount a user or business can spend on ads or other services on the Facebook platform before they have to pay that amount. Setting a payment threshold helps users easily manage their ad costs and avoid unwanted spending. Currently, there are two main types of payment thresholds on Facebook:
- Daily payment threshold: This is the maximum amount you will pay each day for Facebook ads. When spending reaches this threshold in a day, your ads will pause until the next day.
- Total payment threshold: This is the maximum amount you will pay within a specific period, usually each month. When spending reaches this threshold within that period, your ads will pause until the next period begins or you change the settings.
How does the Facebook payment threshold work?
For your first time advertising on Facebook, the payment threshold is automatically set at a small amount. If you pay successfully, this threshold will increase as your account reaches the final threshold. For instance, in your first ad campaign, your payment threshold is $20. Facebook will accumulate all unpaid costs up to $20. At that point, you need to pay this amount in full to Facebook. After completing the payment, the balance will be reset, and Facebook will start charging for the next set of ads.
In general, with the billing threshold, your monthly ad costs might not be enough to require payment at all. However, if you spend with a large budget, you might have to pay multiple times. The number of payments depends on the payment threshold you’ve set. This is why you might be charged for ads even after purchasing them, even if you’ve stopped running Facebook Ads. Let’s find the most effective how to optimize Facebook Ads costs.
At what threshold does Facebook bill and request payment?
The current payment thresholds are specified as follows:
- For USD: $25, $50, $250, $500, $750, and the highest is $20,000,000.
- For VND: 50,000 VND, 70,000 VND, 110,000 VND, 230,000 VND, 340,000 VND, 550,000 VND, 1,100,000 VND, and the highest is 20,000,000 VND.
Note: Using VND as the payment unit will help you manage more easily. However, the payment thresholds of other countries when converted to VND will differ due to exchange rates.
Especially, there are many instances where you have turned off Facebook Ads but are still being charged. This may be due to using the post-payment method. With this method, Facebook does not deduct money immediately but charges when your account reaches the payment threshold or the billing date.
- Use VND as the currency for easier management. When converting foreign currency to VND, costs might be higher due to exchange rate differences.
- For example, you set the Facebook payment threshold to 20 million VND. If your Facebook ad spending in July is 25 million VND, you will be billed twice: once for 20 million VND according to the set threshold and once for 5 million VND for the excess spending in the 30-day cycle.
- Another issue to note is that sometimes you’ve turned off Facebook Ads but are still being charged. This is because you used the post-payment method. Facebook will not charge the ad fees immediately but will only deduct money from your account when reaching the payment threshold or on the billing date.
How to ask to raise the payment threshold for Facebook?
There are two specific stages for raising the payment threshold:
Stage 1: Threshold below 20 million VND
To ask to raise the payment threshold for Facebook, follow these steps:
Step 1: Access Ads Manager
- Log in to your Facebook ad account.
- Access Ads Manager by clicking the downward arrow icon in the upper right corner of the Facebook page and selecting “Ads” from the menu.
Step 2: Select “Budget and Schedule”
- In Ads Manager, choose the ad campaign you want to change the payment threshold for.
- Then, click on the “Budget and Schedule” tab.
Step 3: Edit the Payment Threshold
- In the “Budget and Schedule” tab, you will see the “Payment Threshold” section.
- Click the “Edit” button to change the current payment threshold.
Step 4: Confirm changes
- After clicking “Edit,” enter the new spending level you want to set for the payment threshold.
- Note that you cannot set a payment threshold lower than your current spending level.
- Click “Save” or “Extend” (if you want to extend the threshold period) to confirm the changes.
Step 5: Review and confirm
- Carefully review the entered information and confirm the changes.
- Facebook may require you to provide updated payment methods if necessary.
Step 6: Complete
After confirming the changes, the payment threshold will be updated and applied to your ad campaign.
Stage 2: Threshold Above 20 Million VND
At this stage, there are two ways to request an increase in the payment threshold:
Method 1: Direct request via Link
Step 1: To request an increase in the payment threshold, visit the following link: https://www.facebook.com/help/contact/649167531904667. After accessing the link, select the account you want to increase the threshold for and the desired amount. Provide a reason and optionally attach documents or images (if any). Finally, click “Submit.”
Step 2: After reviewing all issues, Facebook will respond to you. You need to comply with the following requirements:
- The new payment threshold is not lower than the current threshold.
- Fully pay all Facebook invoices continuously for at least 10 times.
- Your Facebook account must be operating normally, not blocked or deactivated.
- Use a credit card, debit card, or PayPal account and register one of the payment methods with Facebook.
Step 3: After completing the steps as instructed, resubmit the request. Facebook will review and decide on your payment threshold increase based on the stated criteria.
Method 2: Contact Facebook Support
Step 1: Access https://facebook.com/business/help/support to get support for increasing the threshold. Click the “Contact Advertising Support” button.
Step 2: Choose “Other Issue.”
Step 3: Select the issue you are facing.
Step 4: Choose the account, fan page, or business page that needs support.
Step 5: Use the search function and enter the keyword “threshold.” Select “I want to change the threshold…”. If this option is not available, choose any similar option related to payment, and the Support team will guide you.
Step 6: Fill in all contact information and then return to your personal Facebook page. You will receive a message from the Support team.
Notes on raising payment threshold for Facebook
Increasing the payment threshold on Facebook is not simple. If you reduce the billing threshold, Facebook will accept the request immediately. However, when you want to raise the threshold, you need to wait for some time for Facebook to apply the changes. This is because Facebook needs to charge the ad account successfully when the threshold is reached. Facebook needs to receive several successful payments at the current threshold before increasing the threshold for you.
Moreover, your request to increase the threshold will need to be reviewed and approved. This can be accepted or rejected. If your billing threshold increase request is not accepted at the moment, you can propose an increase at a later time, or you can submit an appeal to Facebook.
In the above article, Optimal Agency has listed the detailed information accurately. We hope that the information we have shared can help you understand the concept, how the payment threshold on Facebook works, and successfully perform the processes to request an increase in the payment threshold on this platform.
Please see more:
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FAQ
If you want to request an increase in the payment limit on Facebook, you can use the following link: https://facebook.com/help/contact/649167531904667. This helps you request Facebook to consider increasing the payment limit of your ad account.
Increasing the payment threshold on Facebook offers significant benefits for businesses advertising on this platform. Firstly, increasing the threshold allows you to run larger ad campaigns, increasing the chances of reaching a larger audience. Additionally, raising the limit also enhances your ability to manage and optimize your ad campaigns, from tracking performance to adjusting advertising strategies for the best results. This not only improves ad performance but can also increase revenue and profit for your business.