What you need to create a PayPal account

You can open a PayPal account in about 15 minutes with an email address, a password, and either a debit card or bank account number. PayPal does not charge you to create the account itself. You will need to verify your identity before you can send or receive money above small amounts, which means having a government-issued ID ready and confirming your legal name, address, and date of birth.

PayPal offers two account types: Personal and Business. A Personal account is free and lets you send money to friends, pay for online purchases, and receive payments. A Business account costs nothing to open but charges fees when you receive payments from customers — useful if you plan to sell goods or services. Most people start with Personal.

Before you start, decide whether you want to link a debit card, a credit card, or a bank account. Debit and bank accounts are faster to verify. Credit cards work but take longer and may trigger additional security checks.

Key Takeaways

  • You need an email address, password, and either a debit card or bank account to open a PayPal account, and the whole process takes about 15 minutes.
  • PayPal will ask you to verify your identity with a government ID and confirm your legal name, address, and date of birth before you can move large amounts of money.
  • Personal accounts are free and have no monthly fees; Business accounts are also free to open but charge fees when you receive customer payments.
  • Linking a debit card or bank account verifies faster than a credit card, and you should have your card or account number ready before you start.

Step-by-step: opening your account

Go to paypal.com and click "Sign Up" in the top right corner. Choose Personal or Business, then enter your email address and create a password. PayPal will send a confirmation link to your email — click it to verify the address is real.

Next, enter your full legal name, date of birth, address, and phone number. PayPal uses this information to match you against fraud databases and to comply with federal money-transmission rules. The name must match your government ID exactly, including middle names or initials if they appear on your ID.

Add a payment method: enter your debit card number, credit card number, or bank account and routing number. If you use a bank account, PayPal will make two small deposits (usually under $1 each) to your account within one to three business days. You then log back in and enter those amounts to confirm you own the account. Debit cards verify instantly or within a few hours.

Review PayPal's User Agreement and Privacy Policy, check the box to accept them, and click "Agree and Create Account." You now have a working PayPal account, though you may not be able to send or receive large amounts until you complete identity verification.

Identity verification: when it happens and what to expect

PayPal verifies your identity in stages. When you first open the account, they run your name, address, and date of birth against their fraud database. This is automatic and usually takes seconds.

If you try to send or receive more than $500 in a single transaction or $2,000 in a rolling 12-month period, PayPal will ask you to upload a photo of your government-issued ID — a driver's license, passport, or state ID card. You take a photo with your phone or computer and upload it through your account settings. PayPal reviews it within 24 to 48 hours and either confirms your identity or asks for a clearer image.

In rare cases, PayPal may ask you to verify your identity by phone or video call. This happens when the uploaded ID does not match their records or when transaction patterns look unusual. If this occurs, PayPal will contact you with instructions.

Once verified, you can send and receive money without limits (within PayPal's terms). Verification is a one-time process for your account.

Linking a bank account versus a debit card

A bank account takes one to three business days to verify but costs nothing and is the safest way to fund PayPal transfers. PayPal deposits two small amounts to your checking account, you log in and confirm the amounts, and your account is linked. After that, you can transfer money from PayPal back to your bank account for free, and the transfer usually arrives within one to three business days.

A debit card verifies instantly or within hours and lets you move money immediately. However, if you transfer money from PayPal back to a debit card, PayPal charges a fee (usually $1.50 to $2.00 per transfer, depending on the card issuer). You also cannot use a debit card to fund a PayPal balance — money goes directly from the card to the recipient each time.

A credit card works with PayPal but only for paying for things, not for receiving money or funding transfers. Credit cards also take longer to verify and may trigger additional security questions.

For most people, linking a bank account is the best choice because it is free and gives you the most flexibility.

What you can do once your account is open

Send money to anyone with an email address or phone number, even if they do not have a PayPal account yet. They will receive a notification and can claim the money by opening an account or cashing out to their bank account.

Receive payments from other PayPal users for free if they send money as "Friends and Family." If someone sends you money as a "Goods and Services" payment (which includes a receipt and some buyer protection), PayPal charges you a fee — usually 2.9% plus $0.30 per transaction for Personal accounts in the United States.

Pay for online purchases at any store that accepts PayPal. Your bank account or card is not shared with the seller, which adds a layer of privacy and fraud protection.

Request money from someone else, which sends them a notification asking them to pay you. They can accept or decline.

Use PayPal's mobile app to send money, check your balance, and receive notifications about incoming payments. The app is available on iOS and Android.

Security and fraud protection

PayPal encrypts your financial information and does not share your bank account or card number with sellers when you make a purchase. If you send money to the wrong person or a seller does not deliver what they promised, PayPal's Buyer Protection and Seller Protection programs may reimburse you — though the rules vary depending on whether the payment was sent as Friends and Family or Goods and Services.

Set up two-factor authentication to protect your account from unauthorized access. Go to Settings, then Security, and choose to receive a code by text or email each time you log in from a new device. This is optional but strongly recommended if you store a large balance in PayPal or link it to a bank account.

Do not share your PayPal password, and do not click links in emails claiming to be from PayPal unless you initiated the action yourself. Scammers often send fake PayPal emails asking you to "verify your account" or "confirm your identity." Legitimate PayPal messages come from paypal.com email addresses and direct you to log in through the official website, not through a link in the email.

Fees you should know about

Opening a Personal account and sending money to friends is free. Receiving money as Friends and Family is also free.

Receiving a Goods and Services payment costs 2.9% plus $0.30 per transaction for Personal accounts in the United States. If you are a Business account holder, the fee is the same unless you are a nonprofit or a seller in certain categories.

Transferring money from PayPal to your bank account is free and takes one to three business days. Transferring to a debit card costs $1.50 to $2.00 and is faster (usually same-day or next-day).

International transfers have higher fees and exchange rates. PayPal charges a percentage of the amount sent plus a fixed fee, which varies by country. Check the fee before you confirm an international transfer.

PayPal does not charge monthly fees for Personal or Business accounts, and you do not pay anything just for having money in your PayPal balance.

Frequently Asked Questions

Can I open a PayPal account without a bank account or debit card?

No. PayPal requires at least one payment method — a debit card, credit card, or bank account — to open an account. You cannot create an account with only an email address and password. If you do not have a bank account, a prepaid debit card (available at most grocery stores or pharmacies) works just as well.

How long does it take to verify my identity?

Initial account creation takes 15 minutes. If you link a debit card, you can use your account immediately for small transfers. If you link a bank account, verification takes one to three business days. If you need to upload a government ID to send or receive large amounts, PayPal reviews it within 24 to 48 hours.

What happens if I forget my PayPal password?

Go to paypal.com, click "Log In," then click "Forgot Password?" Enter your email address and PayPal will send you a link to reset it. Click the link, create a new password, and log in. If you do not receive the email, check your spam folder or contact PayPal support through your account settings.

Can I have more than one PayPal account?

PayPal allows one Personal account and one Business account per person, but both must use different email addresses. Having multiple accounts under the same name or using someone else's account violates PayPal's terms and can result in account closure and funds being held.

Is PayPal safe for receiving money from strangers?

PayPal offers Seller Protection if you receive a Goods and Services payment, which covers you if a buyer claims they did not receive the item or that it was not as described. Friends and Family payments have no protection, so only use that option for people you trust. Always keep records of what you sold or why you received money, in case PayPal asks questions later.