What you need to create a PayPal account

You need three things to open a PayPal account: 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 link during signup. The whole process takes about 10 minutes, and you can start sending money to other people or receiving payments as soon as your account is confirmed.

PayPal accepts accounts from people in the United States who are at least 18 years old. If you are under 18, a parent or guardian can open an account on your behalf, but you will not be able to use it independently until you reach 18.

You do not need to have a business to use PayPal. Personal accounts work the same way as business accounts for peer-to-peer transfers — the difference matters only if you are selling goods or services regularly and need invoicing tools or tax reporting.

Key Takeaways

  • You can create a PayPal account in about 10 minutes using an email address, a password, and a debit card, credit card, or bank account.
  • PayPal will send a confirmation email and may ask you to verify your identity by confirming a small deposit or answering security questions.
  • Once your account is confirmed, you can send money to anyone with an email address or phone number, even if they do not have a PayPal account yet.
  • Linking a bank account instead of a card gives you lower fees when you send money and lets you withdraw funds directly to your checking account.
  • You can change your linked payment method, add multiple cards or accounts, and update your information at any time after signup.

Step-by-step: creating your account

Go to paypal.com and click the "Sign Up" button at the top right. You will see two options: Personal Account or Business Account. Choose Personal Account unless you plan to invoice clients or sell items regularly.

Enter your email address and create a password. Your password must be at least 8 characters long and include at least one number and one uppercase letter. PayPal will ask you to confirm your email address by clicking a link in a confirmation email — check your inbox and spam folder if you do not see it within a few minutes.

Next, enter your full name, date of birth, and address. PayPal uses this information to verify your identity and comply with federal banking rules. The name you enter must match the name on your payment method (your card or bank account).

Link a payment method by entering either a debit card number, credit card number, or bank account routing and account numbers. If you use a card, PayPal will charge a small amount (usually $1.95 or $2.95) to verify it is real, then refund that amount within a few days. If you link a bank account, PayPal will make two small deposits to your checking account and ask you to confirm the amounts — this takes 1 to 3 business days.

Confirming your identity

After you submit your information, PayPal may ask you to verify your identity before you can send or receive large amounts of money. The most common method is a security question — PayPal asks something like "What was the name of your first pet?" or "What city were you born in?" and you answer based on information from public records.

If PayPal cannot verify you through security questions, it may ask you to upload a photo of your driver's license or passport. Take a clear photo of the front and back, upload both images, and PayPal will review them within 24 to 48 hours. Do not send a screenshot or a blurry photo — PayPal will reject it and ask you to resubmit.

Until your identity is confirmed, you can receive money but may not be able to send more than a certain amount (usually $500 to $2,000 per transaction). Once confirmed, these limits lift and you can send and receive without restriction.

Linking a bank account instead of a card

A bank account is more useful than a card for peer-to-peer transfers because PayPal charges no fee when you send money from a bank account, but charges a small percentage (usually 2.2% plus $0.30) when you send from a card. Withdrawing money to your bank account is also free, whereas withdrawing to a card may cost $1.50 to $2.

To link a bank account, click "Wallet" at the top of your PayPal page, then "Link a Bank Account." Enter your routing number and account number — you can find both at the bottom left of any check, or log into your bank's website and look for account details. PayPal will make two small deposits (usually under $1 each) to your checking account within 1 to 3 business days.

Once the deposits arrive, go back to PayPal, click "Confirm Bank Account," and enter the two amounts. PayPal will then verify the account and you can use it to send money or withdraw funds. If you do not see the deposits after 3 business days, contact your bank — sometimes they flag PayPal deposits as suspicious and hold them.

What happens after you confirm your account

Once your account is active and your payment method is verified, you can send money to anyone with an email address or phone number. They do not need to have a PayPal account — PayPal will send them a notification and they can claim the money by creating an account or cashing out to their bank.

You can also receive money from other PayPal users. When someone sends you money, it lands in your PayPal balance and you can leave it there, send it to someone else, or withdraw it to your bank account. Withdrawals to a linked bank account are free and usually arrive within 1 to 3 business days.

PayPal charges a fee only when you send money using a credit card or debit card, or when you receive money as a business payment (for goods or services). Peer-to-peer transfers between personal accounts are free if you send from a bank account or your PayPal balance.

Changing or adding payment methods later

You can add multiple cards or bank accounts to your PayPal account at any time. Click "Wallet," then "Link a Card" or "Link a Bank Account," and follow the same verification steps. You can then choose which method to use when you send money, or set one as your default.

To remove a payment method, go to "Wallet," find the card or account you want to delete, and click the menu icon next to it. Select "Remove" and confirm. You must have at least one payment method linked to your account at all times.

If your card expires or you close a bank account, update PayPal as soon as you can. If someone tries to send you money and your linked account is no longer valid, the transfer may fail and the money will be returned to the sender.

Security and protecting your account

Use a strong, unique password — one you do not use for email, banking, or other websites. If someone gains access to your email, they can reset your PayPal password and take control of your account. Enable two-factor authentication by going to "Settings," then "Security," and turning on "Two-Step Verification." PayPal will text you a code every time someone tries to log in from a new device.

Do not share your password or security code with anyone, even if they claim to be from PayPal. PayPal will never ask for your password by email or phone. If you receive an email asking you to "confirm your account" or "verify your payment method," do not click the link — go directly to paypal.com instead and log in to check your account.

Review your transaction history regularly. Click "Activity" at the top of your PayPal page to see all money sent and received. If you see a transaction you did not make, report it to PayPal immediately — you have up to 180 days to dispute an unauthorized transfer.

Frequently Asked Questions

Can I create a PayPal account without a credit card or bank account?

No. PayPal requires you to link at least one payment method during signup. You can use a debit card, credit card, or bank account. If you do not have any of these, you cannot open a PayPal account.

How long does it take for my account to be ready to use?

If you link a debit or credit card, your account is usually ready within 10 to 15 minutes after you confirm your email. If you link a bank account, it takes 1 to 3 business days for PayPal to make the verification deposits, plus a few minutes for you to confirm them. Identity verification can add 24 to 48 hours.

What if I forget my PayPal password?

Go to paypal.com, click "Log In," then click "Forgot your 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 do not receive the email, check your spam folder or contact PayPal support.

Can I use PayPal if I do not have a U.S. bank account?

You can create a PayPal account with a U.S. debit or credit card even if your bank account is outside the United States. However, some features like direct bank withdrawals may not work. Contact PayPal support to confirm what you can do with your specific card or account.

Is it safe to link my bank account to PayPal?

Yes. PayPal is encrypted and regulated by the U.S. government as a money transmitter. Your bank account information is stored securely and PayPal does not share it with other companies. You can remove the bank account at any time, and PayPal can only withdraw money when you authorize a transfer.