Google Video - Basic US Billing Process
How AdWords Billing Works
Google will bill you for all the clicks you received once every thirty days. They may bill you sooner depending on your Google Credit Limit. This credit limit depends on your account's history and the limit can be anywhere from $50 - $500 max. Although they say your credit limit can't be more than $500, I have had a few charges above $2000. Also, unlike other pay per click search engines, Google will never bill you in advance. If you spend large amount of money every day, Google will usually charge you $500 multiple times.
Google also has a feature which will allow you to enter more than one credit card incase one of your credit cards cannot pay the bill for your advertisements. I would strongly recommend doing this, especially if you rarely check your Google Account(s).
Outside USA Billing
Google's billing outside of the USA is fairly the same as Google's billing from within the USA. Google allows two billing options which are post pay and prepay.
Post pay – Post pay is where you pay Google after you receive clicks and impressions. This is Google's default payment type.
Prepay – Prepay is where you pay Google before they advertise your website and before you receive any impressions or clicks (this is how Yahoo does their billing).
Google has two videos which talk about billing outside of the US. I recommend watching these videos to get a better understanding about how Google bills people who don't live in the USA.
Google Video - Outside US Payment Options
Google Video - Outside US Value Added Tax (VAT)
AdWords Account Layout
Below is a picture/diagram that will help explain your AdWords account layout.
Basically, within an AdWords account there are campaigns that consist of AdGroups which contain keywords and text ads (your advertisements). It's not too hard to grasp, but it's much easier to understand when you see a diagram of it.
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