Create your account in five minutes with an email and password
Go to paypal.com and click "Sign Up" in the top right. PayPal will ask whether you want a Personal or Business account — choose Personal unless you plan to invoice customers or run a storefront. Enter your email address, create a password (at least 8 characters, with a number and a letter), and confirm your country and date of birth. PayPal will send a confirmation link to your email; click it to verify the address is yours.
That completes account creation. You now have a PayPal wallet and can receive money from other PayPal users. You cannot yet send money, receive payments from cards, or withdraw to your bank account — those steps require adding payment information.
Key Takeaways
- A PayPal account requires only an email address and password to create, but you must verify your email before you can use the account.
- To send money or make purchases, you must link a debit card, credit card, or bank account to your PayPal wallet.
- Linking a bank account takes three to five business days because PayPal deposits and withdraws small amounts to confirm you own the account.
- Your PayPal balance sits in PayPal's system until you transfer it to your bank account, which takes one to two business days.
- Two-factor authentication adds a security layer by requiring a code from your phone each time you log in from a new device.
Link a debit or credit card to send money immediately
After you verify your email, log into your account and go to Wallet (or Settings on mobile). Click "Link a card" and enter your card number, expiration date, and CVV (the three-digit code on the back). PayPal will charge your card a small amount — usually less than $1 — and then refund it within a few days. This confirms the card is real and belongs to you.
Once the card is linked, you can send money to another PayPal user right away. Go to the "Send Money" tab, enter the recipient's email address or phone number, type the amount, and choose whether to send it as a personal transfer (no fee) or as a payment for goods or services (PayPal takes a cut). The recipient sees the money in their PayPal account within minutes.
Credit cards carry higher fees than debit cards when you use them to send money — PayPal charges 2.2% plus $0.30 per transaction if you send as a payment for goods or services. Debit cards have the same fee structure, so the card type matters less than the transaction type.
Connect your bank account for free transfers and withdrawals
Linking a bank account takes longer than a card but unlocks free transfers. Go to Wallet or Settings, click "Link a bank account," and enter your routing number and account number (both appear on the bottom left of a check). PayPal will make two small deposits to your account — usually $0.01 and $0.02 — within three to five business days.
When those deposits arrive, log back into PayPal, go to your bank account settings, and enter the two amounts. PayPal confirms you own the account and unlocks the full connection. Now you can transfer money from your bank to PayPal for free, and withdraw your PayPal balance back to your bank for free. Both transfers take one to two business days.
Once your bank account is linked, sending money to another PayPal user remains free if you send it as a personal transfer. Sending as a payment for goods or services still costs 2.2% plus $0.30, regardless of whether you fund it from your bank account or a card.
Verify your identity to unlock higher sending limits
New PayPal accounts have a sending limit — usually $500 to $2,000 per transaction, depending on your account age and history. If you need to send more, PayPal will ask you to verify your identity. Go to Settings, click "Verification," and upload a photo of your driver's license or passport. PayPal reviews it within 24 hours and raises your limit once approved.
Some users also see a request to confirm their Social Security number or answer security questions about their credit history. This is PayPal's way of confirming you are who you say you are, especially if you are sending large amounts or receiving money regularly. The process is the same: answer the questions or upload the document, and wait for approval.
Your limit increases over time as you use the account without disputes or chargebacks. After six months to a year of regular activity, most users can send $20,000 or more per transaction without additional verification.
Turn on two-factor authentication to protect your account
Two-factor authentication requires a code from your phone each time you log in from a new device. This stops someone who steals your password from accessing your account. Go to Settings, click "Security," and select "Two-Factor Authentication." PayPal will ask whether you want codes sent by text message or generated by an authenticator app like Google Authenticator or Microsoft Authenticator.
Text message is simpler but slightly less secure — an attacker with access to your phone number can intercept the code. An authenticator app is more secure because the codes are generated on your phone and never sent over the internet. Either option is far better than no two-factor authentication.
Once you turn it on, you will need to enter a code the first time you log in from each new device. After that, the device is trusted and you will not need a code again unless you clear your browser cookies or log out.
Understand what happens when you receive money
When someone sends you money through PayPal, it lands in your PayPal balance immediately. You can see it in your Wallet tab and use it to send money to someone else right away. However, the money sits in PayPal's system, not your bank account, until you transfer it out.
To move the money to your bank account, go to Wallet, click "Transfer Money," and select your linked bank account. Enter the amount and confirm. The transfer takes one to two business days. During that time, the money is in transit and you cannot access it, though PayPal shows it as "pending" in your account.
If someone sends you money as a payment for goods or services — for example, if you sold them something — PayPal holds the money for up to 21 days if your account is new or if the transaction is unusual. This is a fraud protection measure. Once the hold lifts, you can transfer the money to your bank account.
Resolve a payment dispute or unauthorized transaction
If you sent money to the wrong person or the recipient never delivered what they promised, you can open a dispute. Go to your transaction history, find the payment, and click "Report a Problem." PayPal will ask you to describe what went wrong and give the recipient a chance to respond. If they do not respond within 10 days, or if their response does not resolve the issue, PayPal will refund you.
If someone else used your account without permission, report it immediately. Go to Settings, click "Resolution Center," and report the unauthorized transaction. PayPal will freeze the account while it investigates and will refund you if it confirms the charge was fraudulent. This process usually takes 10 to 30 days.
PayPal's fraud protection covers unauthorized transactions on linked cards and bank accounts, but not personal transfers between friends. If you send money as a personal transfer and change your mind, you can only ask the recipient to send it back — PayPal cannot force a refund.
Frequently Asked Questions
Do I need a bank account to use PayPal?
No. You can link a debit or credit card and send money immediately. A bank account is optional and mainly useful if you want free transfers or to withdraw your PayPal balance without paying a fee.
How much does it cost to send money to a friend?
Sending money as a personal transfer is free, regardless of whether you fund it from a card or bank account. Sending as a payment for goods or services costs 2.2% of the amount plus $0.30. Always choose "personal transfer" when sending to friends or family.
What if I forget my PayPal password?
Go to paypal.com and click "Log In," then click "Forgot your password?" at the bottom. PayPal will send a reset link to your email. Click it, create a new password, and log in. If you cannot access the email address on your account, contact PayPal support through the Help Center.
Can I use PayPal on my phone?
Yes. Download the PayPal app from the App Store or Google Play, log in with your email and password, and you can send and receive money the same way as on a computer. The app also lets you scan QR codes to send money faster.
How long does it take to receive money from someone else?
Money from another PayPal user appears in your account within minutes. If someone sends it from a linked bank account or card, it may take up to 24 hours. Money sent as a payment for goods or services may be held for up to 21 days if your account is new.