What you need to create a PayPal account

You can create a PayPal account in about 15 minutes with just an email address, a password, and basic personal information. PayPal does not require you to have a bank account or credit card to sign up — you can add those later, or not at all. The account itself is free.

Start at paypal.com and click "Sign Up". You will choose between a Personal account (for sending and receiving money from friends and family) or a Business account (if you sell goods or services). Most people use Personal. You will enter your email, create a password, and provide your name, address, and date of birth.

PayPal will ask you to confirm your email address by clicking a link they send you. After that, your account is live and you can receive money immediately. Adding a bank account or card is optional but recommended if you want to withdraw funds or make purchases.

Key Takeaways

  • A PayPal account requires only an email address, password, name, address, and date of birth — no bank account or card needed to start.
  • Personal accounts are for peer-to-peer transfers; Business accounts are for selling or accepting payments from customers.
  • Email confirmation happens automatically and takes a few minutes; your account is ready to receive money right after.
  • Linking a bank account or debit card lets you withdraw money or spend from your PayPal balance, but is not required to receive payments.
  • PayPal holds new accounts for 21 days before releasing large withdrawals, a security measure called account limitation.

Personal account versus Business account

A Personal account is designed for sending money to friends, splitting bills, and receiving payments from people you know. You can receive up to $20,000 per transaction and have no monthly limits on how many transactions you make. Personal accounts do not charge a fee when someone sends you money using their PayPal balance or bank account. If someone pays you using a credit or debit card, PayPal takes a small fee (currently 2.2% plus $0.30 per transaction in the US, though this varies by country).

A Business account is for people who sell items, offer services, or run a shop. Business accounts can accept credit card payments and invoices. PayPal charges a fee on every transaction — currently 2.2% plus $0.30 per transaction when someone pays with a card or bank account. Business accounts also give you access to tools like invoicing, shipping labels, and transaction reports. You can upgrade from Personal to Business at any time.

If you are only receiving money from friends or family, use Personal. If you sell anything or want to invoice customers, use Business.

Step-by-step setup process

Go to paypal.com and click the "Sign Up" button in the top right. You will see two options: Personal and Business. Select Personal unless you plan to sell or invoice.

Enter your email address and create a password. Your password should be at least 8 characters and include uppercase letters, lowercase letters, numbers, and symbols. PayPal will check the strength as you type.

Fill in your full name, address, and date of birth. Use the address where you currently live. PayPal uses this information to verify your identity and comply with financial regulations.

Review PayPal's User Agreement and Privacy Policy (you can read them or skip to the bottom and click accept). Click "Agree and Create Account". PayPal will send a confirmation email to the address you provided. Open that email and click the confirmation link. Your account is now active.

Adding a bank account or card

You do not need to link a bank account or card to receive money, but you will need one to withdraw your PayPal balance to your own account. To add a bank account, log into PayPal, click your profile icon in the top right, select "Wallet", and click "Link a Bank Account". Enter your routing number and account number (found on the bottom left of your checks, or in your bank's app). PayPal will make two small deposits to your account — usually within 1 to 2 business days — and ask you to confirm the amounts. This verifies that you own the account.

To add a debit or credit card instead, click "Link a Card" in the same Wallet section. Enter the card number, expiration date, and CVV. PayPal will verify the card immediately, usually with a small temporary charge that is reversed within a few days.

Once linked, you can withdraw money from your PayPal balance to your bank account (which takes 1 to 3 business days) or spend directly from your PayPal balance using your card or a linked bank account.

Account limitations and holds

New PayPal accounts are subject to a 21-day hold on withdrawals. This means if someone sends you money, you can see it in your account immediately, but you cannot withdraw it to your bank account for 21 days. You can still spend it using PayPal's debit card or send it to another PayPal user during this time. The hold is a security measure to prevent fraud.

After 21 days, the hold lifts and you can withdraw normally. If you receive a large payment (PayPal does not publish the exact threshold, but it is typically $500 or more), PayPal may place an additional hold and ask you to confirm the transaction. This is also normal and usually resolves within a few days.

If PayPal suspects unusual activity — like many transactions in a short time, or a payment that looks like a refund scam — they may limit your account temporarily. You will receive an email explaining the limitation and what you need to do to resolve it, usually providing a document or answering questions about the transaction.

Security and fraud protection

PayPal offers Buyer Protection and Seller Protection depending on your account type. As a Personal account holder receiving money, you have limited protection — PayPal's main safeguard is that they monitor for fraudulent accounts and unauthorized access to your account.

To protect yourself, use a strong, unique password and enable two-factor authentication. In your account settings, go to Security and click "Set Up Two-Step Verification". PayPal will send a code to your phone or email every time someone logs in from a new device. This prevents someone from accessing your account even if they have your password.

Never share your password or the codes PayPal sends you. If you receive an email claiming to be from PayPal asking you to confirm your account or update your information, do not click the link — go directly to paypal.com instead. Scammers often send fake emails that look like they are from PayPal.

Withdrawing money and fees

To withdraw money from your PayPal balance to your bank account, log in, click "Wallet", and select your linked bank account. Click "Transfer Money" and enter the amount. The transfer usually takes 1 to 3 business days. PayPal does not charge a fee for this transfer.

If you want the money faster, PayPal offers Instant Transfer to a linked debit card for a fee of $0.25 per transfer (as of 2024, though this may vary). The money arrives within 30 minutes.

If you receive money via credit card payment, PayPal deducts their fee (2.2% plus $0.30) before the money reaches your account. So if someone sends you $100 by card, you receive $97.50. Fees are lower or nonexistent if the sender uses their PayPal balance or a linked bank account.

Frequently Asked Questions

Do I need a bank account to create a PayPal account?

No. You can create an account with just an email address and personal information. You only need a bank account or card if you want to withdraw money or spend from your PayPal balance. You can receive money without either one.

Can I have more than one PayPal account?

PayPal's terms say each person should have only one Personal account. If you need a separate account for business, you can convert your Personal account to Business or create a Business account instead. Creating multiple accounts under the same name or email can result in account closure.

What happens if I forget my password?

Click "Forgot Password" on the PayPal login page. PayPal will send a reset link to your email. Click the link and create a new password. If you do not have access to your email, you will need to contact PayPal support with proof of identity.

How long does it take to verify my bank account?

PayPal makes two small deposits to your bank account, which usually arrive within 1 to 2 business days. You then confirm the amounts in your PayPal account, and verification is complete. Until you confirm, you cannot withdraw money, but you can still receive and spend it.

Can I close my PayPal account?

Yes. Log in, go to Settings, click "Account", and select "Close Your Account". PayPal will ask you to confirm and may ask about any outstanding transactions. Once closed, you cannot reopen the same account, but you can create a new one with the same email address after 180 days.