Facebook Marketplace and Ad Manager use different payment systems
Facebook Marketplace itself does not charge you to list items for sale — you post for free and handle payment directly with the buyer. Ad Manager, which is Facebook's advertising platform, is where you pay to promote posts or run ads. These are two separate systems with separate payment setups, and the confusion between them is common.
If you are selling items on Marketplace, you choose how the buyer pays you: cash in person, PayPal, Venmo, or another method you arrange. Facebook does not process that transaction. If you are paying to advertise on Facebook or Instagram through Ad Manager, you add a payment method to your Ad Manager account, and Facebook charges you for the ads you run.
Reddit does not have a built-in marketplace or ad manager in the same way. Reddit users can buy and sell through third-party services, and Reddit's own advertising platform (Reddit Ads) works similarly to Facebook Ad Manager — you add a payment method and pay for promoted posts.
Key Takeaways
- Marketplace listings are free; you set your own payment terms with buyers, and Facebook does not handle the money.
- Ad Manager charges you to promote content, and you must add a valid payment method (credit card, debit card, or PayPal) to your Ad Manager account before running ads.
- Facebook and Reddit both require you to verify your payment method before ads go live, which usually takes a few minutes to a few hours.
- If you sell on Marketplace and also run ads, these are two separate accounts and two separate payment setups.
- Declined payments or billing issues can pause your ads immediately, so keeping your payment method current matters if advertising is part of your business.
Adding a payment method to Facebook Ad Manager
Log into your Facebook account and go to Ad Manager (facebook.com/ads/manager). In the top left, click the menu icon and select Settings. On the left sidebar, click Billing. You will see a section labeled Payment Method.
Click Add Payment Method and choose from credit card, debit card, or PayPal. If you use a card, enter the full card number, expiration date, and CVV. If you use PayPal, you will be redirected to log into your PayPal account and authorize Facebook to charge it. Facebook will verify the payment method by charging a small amount (usually under $2) and then refunding it within a few days. You can use that temporary charge to confirm the card is valid.
Once verified, that payment method becomes your default. You can add multiple payment methods and switch between them, or set one as primary. Facebook will charge whichever method you have set as default when your ad account balance reaches zero or on your billing date, depending on your account type.
How billing works once your payment method is active
Facebook Ad Manager operates on either a monthly billing cycle or a prepaid balance system. If you have monthly billing, Facebook charges your payment method on a set date each month for all ads you ran that month. If you set up a prepaid balance, you add money to your account first, and Facebook deducts from that balance as your ads run.
You can set a daily budget (how much you want to spend per day on a specific ad) or a lifetime budget (total spend over the entire campaign). Facebook will not charge you more than the budget you set. If your payment method declines, your ads pause automatically, and you will see a notification in Ad Manager. You have a grace period to update your payment method, but ads remain paused until you do.
You can view your billing history, invoices, and spending breakdown in the Billing section of Ad Manager. This is where you also see if any charges failed or if there are outstanding balances.
Setting up payments for Reddit ads
Reddit's advertising platform is called Reddit Ads (ads.reddit.com). Log in with your Reddit account and click Billing in the left menu. Click Add Payment Method and enter a credit card or debit card. Reddit accepts Visa, Mastercard, American Express, and Discover. You can also link a PayPal account.
Reddit verifies your card immediately and does not charge a test amount. Once added, your payment method is active. Reddit bills you monthly for ads you ran that month, similar to Facebook. You can set daily or total campaign budgets, and Reddit will not exceed them.
Reddit also allows you to set spending limits and pause billing if you want to stop ads temporarily without removing your payment method. Your billing history and receipts are available in the same Billing section.
Payment methods Facebook and Reddit accept
Both platforms accept major credit and debit cards: Visa, Mastercard, American Express, and Discover. Both also accept PayPal. Some regions may have additional options like local payment methods, but these four are universal.
Neither platform accepts cryptocurrency, wire transfers, or checks. If you are running ads for a business, you can link a business bank account through PayPal and then connect PayPal to your ad account, but you cannot link a bank account directly to Facebook or Reddit Ads.
If your card is declined, the most common reasons are insufficient funds, the card being expired, the card issuer blocking the charge (contact your bank), or the billing address not matching your card's registered address. Update your payment method in the billing settings and try again.
Keeping your payment method secure
Both Facebook and Reddit encrypt payment information and do not store full card numbers on their servers. When you add a card, the platform tokenizes it — meaning they store a secure reference to it, not the actual number. This is the same standard used by most online retailers.
You should still treat your Ad Manager and Reddit Ads accounts like you would any financial account: use a strong password, enable two-factor authentication, and do not share your login with others. If you suspect fraud or an unauthorized charge, contact Facebook or Reddit support immediately and also contact your card issuer to dispute the charge if needed.
If you are managing ads for a client or business, consider creating a separate business account rather than using your personal account. This keeps personal and business finances separate and makes it easier to hand off the account later.
What to do if your payment method is declined
When a payment fails, your ads pause within minutes. You will see a notification in Ad Manager or Reddit Ads saying your billing is past due or your payment method failed. The reason is usually one of these: insufficient funds, expired card, card issuer blocking the charge, or billing address mismatch.
Log into your billing settings and update your payment method. You can remove the declined card and add a different one, or update the same card if the issue was temporary (like a low balance that you have since replenished). Once you save the new payment method, your ads will resume within a few minutes.
If the same card keeps declining, try a different card or PayPal. If all your payment methods are failing, contact your bank or PayPal to ask if they are blocking charges from Facebook or Reddit — some financial institutions flag advertising platforms as high-risk and require you to call and authorize the charge.
Frequently Asked Questions
Can I use the same payment method for both Facebook Ad Manager and Reddit Ads?
Yes. You can add the same credit card or PayPal account to both platforms. They are separate systems, so you will manage billing in each one independently, but the underlying payment method can be the same.
Do I have to pay upfront or does Facebook charge me after my ads run?
Facebook charges you after your ads run, either daily or monthly depending on your account settings. You do not prepay unless you choose to set up a prepaid balance. Reddit works the same way — you are charged monthly for ads that have already run.
What happens if I remove my payment method while ads are running?
Your ads will pause immediately, and you will not be charged for any new impressions. However, you will still owe for ads that already ran before you removed the payment method. Add a payment method back to settle the balance and resume ads.
Can I use a business account or invoice billing instead of a card?
Facebook and Reddit both offer invoice billing for large advertisers, but you typically need to spend a minimum amount per month (often $5,000 or more) to may have access to. Contact their sales teams to ask about invoice billing options for your account.
Is there a way to set a spending cap so I do not go over budget?
Yes. Both platforms let you set daily budgets for individual ads and lifetime budgets for entire campaigns. Facebook and Reddit will not charge you more than the budget you specify, even if more people click your ads than you expected.