What you need to open a PayPal account

You can open a PayPal account in about five 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 email address before you can send or receive money, and if you want to move money out to a bank account later, PayPal will ask you to confirm your identity with a government ID.

PayPal offers two account types: Personal and Business. A Personal account is what most people use for peer-to-peer transfers, online shopping, and paying bills. A Business account is designed for people who sell goods or services and need to invoice customers or accept card payments. For peer-to-peer money movement, a Personal account is sufficient.

You do not need to be a U.S. citizen to open an account, but you do need to be at least 18 years old and have a valid email address. If you are under 18, a parent or guardian can open an account and manage it on your behalf, though PayPal's rules on this vary by country.

Key Takeaways

  • You can create a PayPal account with just an email address and password, then link a debit card or bank account to fund transfers.
  • Email verification happens immediately after signup, and you can send money as soon as that step is complete.
  • Withdrawing money to your bank account requires identity verification with a government ID, which PayPal processes in one to three business days.
  • PayPal charges no fee to open an account or to send money to another PayPal user, but does charge fees for certain other transactions like international transfers or business invoices.
  • If you link a bank account instead of a debit card, transfers out take one to three business days; debit card transfers are usually faster.

Step-by-step account creation

Go to paypal.com and click "Sign Up" in the top right corner. PayPal will ask whether you want a Personal or Business account; select Personal. Enter your email address, create a password (PayPal requires at least eight characters, including uppercase, lowercase, and a number), and provide your first and last name.

Next, PayPal asks for your date of birth and address. Enter the address where you currently live, not a mailing address or P.O. box. Then choose whether you want to link a debit card or bank account. If you have a debit card handy, that is the faster route—you can enter the card number, expiration date, and CVV, and PayPal will verify it in seconds. If you prefer to link a bank account, you will need your routing number and account number, which you can find on a check or in your bank's online portal.

After you submit this information, PayPal sends a verification email to the address you provided. Click the link in that email within 24 hours. Once you do, your account is active and you can send money to other PayPal users immediately.

Linking a bank account versus a debit card

A debit card is faster to set up and faster for withdrawals. When you link a debit card, PayPal verifies it instantly by checking the card number against your name and address. When you withdraw money to that debit card, it usually arrives within one business day. The trade-off is that you can only withdraw to the same card you linked during signup.

A bank account takes longer to verify but gives you more flexibility. PayPal will make two small deposits to your account (usually between $0.01 and $0.99 each) within one to two business days. You then log into PayPal, go to your wallet settings, and enter the exact amounts of those deposits to confirm you own the account. Once confirmed, you can withdraw to that bank account anytime, and the money arrives in one to three business days. You can also link multiple bank accounts to a single PayPal account.

If you plan to send money frequently but do not need to withdraw it often, you do not have to link anything at all—you can fund transfers directly from a debit card each time you send money. PayPal will ask for the card details at the moment of transfer.

Identity verification and withdrawal limits

When you first open a PayPal account, you can receive money from other PayPal users without any additional verification. However, if you want to withdraw money to your bank account or debit card, PayPal will ask you to verify your identity the first time you try.

PayPal uses a third-party service to check your information against government records. You will need to provide your Social Security number (or tax ID if you are a business), date of birth, and address. PayPal then compares this to public records and usually confirms your identity within one to three business days. If there is a mismatch, PayPal will ask you to upload a photo of your government ID—a driver's license, passport, or state ID card.

Until your identity is verified, PayPal may limit how much money you can receive or hold in your account. These limits vary, but are typically in the range of a few hundred dollars. Once verified, the limits are much higher—usually several thousand dollars per transaction and tens of thousands per month, depending on your account history.

Fees you should know about

Sending money to another PayPal user in the United States is free, whether you use a debit card, bank account, or PayPal balance. This is the main reason people use PayPal for peer-to-peer transfers.

However, PayPal does charge fees in other scenarios. If you send money internationally, PayPal charges a percentage of the amount plus a flat fee—the exact rate depends on the destination country. If you receive money as a business payment or invoice, PayPal charges 2.2% plus $0.30 per transaction. If you use PayPal's "Friends and Family" feature to send money to someone outside the U.S., or if the recipient converts the money to a different currency, fees apply.

Withdrawing money to your bank account or debit card is free. There is no monthly fee for a Personal account, and you do not pay anything just to hold money in your PayPal balance.

What to do if verification fails or your account is limited

If PayPal cannot verify your identity automatically, you will receive an email asking you to upload a photo of your ID. Take a clear photo of the front and back of your driver's license, passport, or state ID card, and upload it through the link in the email. PayPal reviews these manually and usually responds within three to five business days.

If your account is limited—meaning PayPal has restricted your ability to send or receive money—check your email for a message explaining why. Common reasons include a mismatch between the name on your account and the name on your linked card or bank account, or suspicious activity. PayPal will tell you what information to update or what documents to provide. You can usually resolve a limitation by correcting the information or uploading the requested documents.

If you cannot resolve the issue yourself, PayPal offers phone support. Go to the Help Center on paypal.com, search for your problem, and look for a "Contact Us" button. PayPal will offer options to call, email, or chat with a representative.

Keeping your account secure

Use a strong, unique password—one you do not use on any other website. If you reuse passwords and another site is hacked, someone could access your PayPal account and your linked bank account or card. PayPal allows you to set up two-factor authentication, which sends a code to your phone or email every time you log in from a new device. Turn this on in your account settings under Security.

Do not share your PayPal password with anyone, 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"—these are phishing attempts. If you receive a suspicious email, go directly to paypal.com in your browser instead of clicking any link in the email.

If you believe your account has been compromised, change your password immediately and contact PayPal support. PayPal monitors accounts for fraud and will refund unauthorized transactions in most cases, but reporting quickly improves your chances of recovery.

Frequently Asked Questions

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

Yes. You can create the account and receive money from other PayPal users without linking anything. However, to withdraw money, you will eventually need to add either a debit card or bank account. You can also use PayPal's prepaid card, which you can load with money and use like a debit card, though this requires a separate application.

How long does it take to verify my bank account?

PayPal deposits two small amounts to your account within one to two business days. Once you see those deposits in your bank statement and enter the amounts into PayPal, verification is instant. The entire process usually takes three to five business days from the time you link the account.

What happens if I forget my PayPal password?

Go to paypal.com and click "Log In," then click "Forgot Password?" Enter your email address, and PayPal sends a reset link to that email. Click the link and create a new password. If you cannot access the email address on your account, you will need to contact PayPal support with proof of identity.

Can I have more than one PayPal account?

PayPal's terms of service say you should have only one Personal account per person. However, you can have both a Personal and a Business account linked to the same email address if you sell goods or services. If you create multiple Personal accounts, PayPal may close them and hold your funds while it investigates.

Is PayPal safe for sending money to strangers?

PayPal offers buyer and seller protection for certain transactions, but peer-to-peer transfers between friends do not have the same protections. If you send money to someone you do not know and they do not send the goods or service you expected, PayPal may not refund you. Only use PayPal's "Goods and Services" option if you are buying something, and use "Friends and Family" only for people you trust.