What you need to create a PayPal account

You need three things to set up PayPal: a valid email address, a password you create, and either a debit card, credit card, or bank account number. PayPal will verify whichever payment method you add by sending a small deposit (usually under $1) to your bank account or by charging and refunding a tiny amount to your card. The whole process takes about 10 minutes, though bank verification can take 1 to 3 business days.

You do not need a Social Security number to create the account itself, but PayPal will ask for one later if you plan to receive money regularly or transfer large amounts. If you are under 18, you cannot open a PayPal account in your own name — a parent or guardian must open it and manage it.

PayPal has two account types: Personal and Business. A Personal account is free and lets you send and receive money from friends and family. A Business account costs nothing to open but charges fees when you receive payments for goods or services. Start with Personal unless you are selling something.

Key Takeaways

  • You need an email address, a password, and a debit card, credit card, or bank account to create a PayPal account.
  • PayPal verifies your payment method by sending a small deposit or charge that you must confirm, which takes 1 to 3 business days.
  • Personal accounts are free and have no fees for sending money to friends and family.
  • You can link multiple cards or bank accounts to one PayPal account, and you can choose which one to use for each transaction.

Step-by-step account creation

Go to paypal.com and click "Sign Up" in the top right corner. Choose Personal account. Enter your email address, create a password (at least 8 characters, with a mix of letters, numbers, and symbols), and select your country and currency. Click "Agree and Create Account."

PayPal will send a confirmation email to the address you provided. Open that email and click the link to verify your email. You will then be asked to enter your full name, date of birth, and address. This information must match what your bank or card issuer has on file.

Next, add a payment method. Click "Link a Card or Bank Account" and choose which type you are adding. For a debit or credit card, enter the card number, expiration date, and CVV (the three-digit code on the back). For a bank account, enter your routing number and account number — you can find both at the bottom of any check you have written, or log into your bank's website to find them.

After you add the payment method, PayPal will verify it. If you linked a card, PayPal charges a small amount (usually $0.01 to $0.99) and then refunds it within a few minutes. If you linked a bank account, PayPal deposits $0.01 and $0.02 into the account over 1 to 3 business days. Once you see those deposits, log back into PayPal, go to your wallet, and confirm the amounts. Your account is then fully set up.

Linking additional cards or bank accounts

You can add as many cards and bank accounts as you want to a single PayPal account. Each one goes through the same verification process. To add another payment method, log into PayPal, click your name in the top right, select "Account," then go to "Wallet." Click "Link a Card or Bank Account" and follow the same steps as before.

When you send money or make a purchase, PayPal will ask which payment method you want to use. You can also set a preferred payment method that PayPal uses by default. If your preferred method fails (for example, your card is declined), PayPal automatically tries the next payment method you have on file.

Setting up a PayPal balance and transferring money in

Your PayPal balance is money sitting in your PayPal account itself, separate from your bank account or cards. You can transfer money from your linked bank account or card into your PayPal balance, and then use that balance to send money to others or make purchases. This is optional — you can send money directly from your card or bank account without keeping a balance.

To add money to your PayPal balance, log in, click your name, select "Wallet," then click "Transfer Money." Choose "Add Money to Your Balance," pick the amount, select which card or bank account to transfer from, and confirm. The transfer takes 1 to 3 business days if you are transferring from a bank account, or a few minutes if you are transferring from a debit card.

You can also receive money from others and have it land in your PayPal balance instead of automatically transferring to your bank account. To do this, go to "Settings," click "Transfers," and choose where you want received payments to go by default.

Understanding PayPal fees for sending money

Sending money to friends and family through PayPal is free if you use your PayPal balance or a linked bank account. If you send money using a credit card, PayPal charges a fee — usually 2.2% of the amount plus $0.30. For example, sending $100 with a credit card costs $2.50.

If someone sends you money as a "friends and family" payment, it arrives in your PayPal account with no fee. If they send it as a "goods and services" payment (meaning you sold them something), PayPal takes a fee of 2.2% plus $0.30 from the amount you receive. A $100 goods and services payment leaves you with $97.50.

Transferring money from your PayPal balance to your bank account is free, but it takes 1 to 3 business days. If you need the money faster, PayPal offers "Instant Transfer" for a fee of $0.25 to $1.50 depending on the amount, and the money arrives within 30 minutes.

Protecting your account and staying secure

Use a strong, unique password that you do not use on any other website. PayPal will ask 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 — it prevents someone else from accessing your account even if they know your password.

Do not share your PayPal password or the codes PayPal sends you. PayPal will never ask for your password by email or phone. If someone claims to be from PayPal and asks for your password, it is a scam.

Review your transaction history regularly. Log into PayPal, click "Activity," and look for any charges you do not recognize. If you see fraud, click the transaction and select "Report a Problem." PayPal investigates and can reverse the charge if it was unauthorized.

Sending and receiving money once your account is active

To send money to someone, log into PayPal and click "Send Money." Enter the recipient's email address or phone number, the amount, and whether it is a friends and family payment or a goods and services payment. Choose your payment method and click "Send." The recipient gets a notification and can accept the money into their PayPal account or have it transferred to their bank account.

To receive money, share your email address or phone number with the person sending it. They enter that information into their PayPal account, and the money lands in yours. You can then leave it in your PayPal balance, transfer it to your bank account, or use it to send money to someone else.

If you are selling something online, you can create a payment request. Click "Request Money," enter the buyer's email, the amount, and a description of what they are paying for. They receive a link and can pay you directly. This protects you because PayPal records what the payment was for, which matters if there is a dispute later.

Frequently Asked Questions

How long does it take to verify my bank account?

PayPal deposits two small amounts ($0.01 and $0.02) into your bank account, which usually takes 1 to 3 business days. Once you see them, log back into PayPal and confirm the amounts. After that, your account is verified and you can send and receive money immediately.

Can I use PayPal without linking a bank account?

Yes. You can link only a debit or credit card and use that to fund your payments. However, if someone sends you money, you will need a bank account to transfer it out of PayPal, or you can keep it in your PayPal balance and use it to send money to others.

What happens if I forget my PayPal password?

Go to paypal.com and click "Log In." Click "Forgot Your Password?" and enter your email address. PayPal sends a reset link to your email. Click the link, create a new password, and log in. If you do not have access to your email, you will need to contact PayPal support to regain access to your account.

Can I close my PayPal account?

Yes. Log into PayPal, click your name, go to "Settings," then "Account," and select "Close Your Account." Make sure your PayPal balance is zero before you close it — transfer any remaining money to your bank account first. Once closed, you cannot reopen the same account, but you can create a new one with a different email address.

Is PayPal safe for sending money to strangers?

PayPal offers buyer and seller protection for goods and services payments, but friends and family payments have no protection. If you are buying from someone you do not know, use the goods and services option so you can dispute the charge if the item never arrives or is not as described.