What you need to create a PayPal account

You need an email address, a phone number, and a way to verify your identity — usually a government ID and a bank account or debit card. PayPal will ask for your legal name, date of birth, and address. The whole process takes about 10 minutes if you have those details ready.

You do not need to fund the account upfront. You can create it empty and add payment methods later. However, PayPal will not let you send money or receive payments until you have added at least one verified payment method — a bank account, debit card, or credit card.

If you are under 18, you cannot open a PayPal account in your own name. Some people use a parent's account with permission, but PayPal's terms do not officially allow this. Once you turn 18, you can open your own account.

Key Takeaways

  • You need an email address, phone number, government ID, and a bank account or debit card to create a PayPal account.
  • PayPal will verify your identity by asking for your name, date of birth, and address, and may request a photo of your ID.
  • You can create an account without funding it, but you cannot send or receive money until you add a verified payment method.
  • The account setup takes about 10 minutes, but full verification can take a few business days depending on your payment method.
  • PayPal offers two account types — Personal and Business — and you can switch between them or hold both.

Step-by-step account creation

Go to paypal.com and click "Sign Up" in the top right. Choose between a Personal account (for sending money to friends and small purchases) or a Business account (if you plan to invoice customers or receive payments for goods or services). The setup questions are slightly different, but both take the same time.

Enter your email address and create a password. PayPal will send a confirmation link to that email — click it to verify the address is real. Then enter your full legal name, date of birth, and home address. PayPal uses this information to match you against fraud databases and government records.

Add a phone number and confirm it by entering a code PayPal texts to you. This step protects your account if someone tries to log in from an unfamiliar device. Then add your first payment method: a bank account (by routing and account number) or a debit or credit card (by card number and expiration date).

PayPal will verify the payment method by depositing two small amounts (usually under $1) into your bank account or charging and refunding a small amount to your card. Check your bank or card statement in 1 to 3 business days, find those amounts, and enter them into PayPal to confirm you own the account. Once verified, your account is ready to use.

Personal versus Business accounts

A Personal account is for sending money to friends, paying for online purchases, and receiving money from other people. You can use it to split rent, pay back a loan, or send birthday money. Personal accounts have no monthly fees and no transaction limits for receiving money from other Personal accounts.

A Business account is for people who sell goods or services and want to invoice customers or accept payments on a website. Business accounts show your business name instead of your personal name, and PayPal charges a fee for each transaction you receive (usually 2.2% plus $0.30 per payment for domestic transfers). Business accounts also give you access to invoicing tools and sales reports.

You can hold both a Personal and a Business account using the same email address, or switch from one to the other. If you start with Personal and later want to sell items, you can upgrade to Business without losing your account history. The choice does not lock you in.

Verification and security after signup

After you create your account, PayPal may ask for additional verification depending on your payment method and the amount of money you plan to move. If you link a bank account, PayPal will ask you to confirm the two small deposits it made. If you link a credit card, the verification is usually instant.

For higher account limits or if PayPal suspects fraud, you may need to upload a photo of your government ID (driver's license, passport, or state ID). Take a clear photo of the front and back, and upload it through your account settings. PayPal reviews these within a few business days.

Once your account is verified, set up two-factor authentication to protect it from hackers. Go to Settings, then Security, and turn on "Two-Step Verification." PayPal will text you a code every time someone tries to log in from a new device. This is optional but strongly recommended, especially if you plan to keep money in your PayPal balance or link it to your bank account.

Adding and managing payment methods

You can link multiple bank accounts, debit cards, and credit cards to the same PayPal account. Go to Wallet in your account menu and click "Link a debit or credit card" or "Link your bank account." Each method needs to be verified before you can use it.

When you send money or make a purchase, PayPal will ask which payment method to use. You can set a default method so PayPal uses the same one each time unless you change it. If a payment fails (for example, your card is declined), PayPal will try your backup method automatically.

You can remove a payment method at any time by going to Wallet and clicking the X next to it. If you have a PayPal balance (money sitting in your account), you can transfer it to any linked bank account for free, usually within 1 to 3 business days.

What happens if verification fails

If PayPal cannot verify your identity using the information you provided, it will limit your account. You will not be able to send money, receive money, or withdraw your balance until you complete verification. PayPal will send you an email explaining what is missing.

Common reasons for verification failure are a mismatch between your name on your ID and your PayPal account, an address that does not match government records, or a payment method that does not match your name. If this happens, go to your Resolution Center and follow the steps to upload documents or correct your information.

If you uploaded an ID photo and it was rejected, the photo may be blurry, cut off, or show an expired ID. Take a new photo in good lighting, make sure all four corners of the ID are visible, and upload it again. PayPal reviews resubmissions within a few business days.

Keeping your account secure

Use a strong, unique password — at least 12 characters with uppercase, lowercase, numbers, and symbols. Do not reuse a password from another website. If you use the same password everywhere and one website gets hacked, a criminal can access your PayPal account and your money.

Never share your password, recovery codes, or two-factor authentication codes with anyone, including PayPal staff. PayPal employees will never ask for your password. If someone contacts you claiming to be from PayPal and asks for sensitive information, it is a scam — report it to PayPal directly through your account.

Check your account activity regularly. Go to your Activity page and look for transactions you do not recognize. If you see unauthorized charges, report them to PayPal immediately. PayPal offers fraud protection for unauthorized transactions, but you must report them within 60 days.

Frequently Asked Questions

Can I use PayPal without a bank account?

You can create an account without a bank account, but you cannot send money until you add a payment method. You can use a debit card or prepaid card instead of a bank account. To receive money, you need either a bank account or a debit card linked to your account so PayPal can transfer the funds to you.

How long does it take to verify my account?

Linking a debit or credit card usually verifies instantly. Linking a bank account takes 1 to 3 business days for PayPal to deposit the verification amounts. If PayPal asks for an ID photo, review takes a few business days. Your account can send and receive money while verification is pending, but you may have lower limits until it is complete.

What if I forgot my PayPal password?

Go to paypal.com and 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 cannot access the email address on your account, click "Can't log in?" and PayPal will walk you through identity verification to regain access.

Can I close my PayPal account?

Yes. Go to Settings, then Account, then Close your account. If you have a balance, transfer it to your bank account first — you cannot close an account with money in it. Once closed, you cannot reopen it, but you can create a new account with the same email address after 90 days.

Does PayPal charge a fee to create an account?

No. Creating a Personal account is free, and there are no monthly fees. You only pay fees when you send money internationally, use certain payment methods, or receive payments as a Business account. Sending money to another PayPal user in the same country using your bank account or PayPal balance is always free.