When we start your advertising campaign on Facebook, which Meta manages, I'll walk you through some critical aspects of billing and spending limits. This will help you understand the initial setup and how it evolves as your campaign progresses.
Part 1: Understanding the Billing Threshold
Explanation of Initial Billing Process: "When we first activate your campaign on Facebook, the platform will initially set a low billing threshold. This means Facebook will charge your credit card in small increments starting at $2."
Reason for Incremental Charges: "The reason for these small and frequent charges is security. By starting with smaller amounts, Facebook aims to prevent fraudulent activities, such as unauthorized use of your account details to rack up large charges."
Threshold Increase Process: "After each successful payment, Facebook will gradually increase this threshold. It typically progresses from $2 to $4, then to $10, $20, and so forth. This increment continues until reaching larger sums, usually up to a point where you're billed every $900 spent on your ads."
Handling Declined Charges: "It’s common for credit card companies, like American Express, to initially decline these frequent small charges, mistaking them for suspicious activity. If you receive a notification from your credit card provider about declined charges, you'll need to confirm that these charges are legitimate. Once confirmed, we can rerun the charges to continue with your campaign."
Part 2: Understanding the Spending Limit
Initial Daily Spending Limit: "Facebook also imposes an initial daily spending limit on new advertising accounts. For example, even if we set a daily budget of $100, Facebook may restrict us to spending only $50 per day at the start."
How to Increase the Daily Limit: "To increase this daily limit, we have two main strategies:
Continuous Spending: As you continue to spend and reach certain amounts—usually between $600 and $1,000—Facebook will typically raise your daily limit to higher amounts like $250.
Business Verification: We can expedite this process through business verification. We’ll check if your business is already verified and guide you through this process if needed."
Impact on Campaign Scheduling: "The initial spending limit is crucial in planning the timeline of your campaign. For instance, if your total campaign budget is $1,000, and we’re initially capped at $50 per day, we need to ensure the campaign runs long enough to fully utilize your budget. This might mean extending the campaign duration to accommodate this spending cap."
Conclusion: "Understanding these billing and spending policies will help us manage your campaign more effectively and ensure we’re maximizing your investment from day one.