Set up a PayPal account and connect a bank account or card
To receive money through PayPal, you need a PayPal account linked to a real bank account or debit card. Start by going to paypal.com and clicking "Sign Up". You'll choose between a Personal or Business account — Personal works for most people receiving payments, but Business is better if you're running a side job or small operation and want to track income separately.
After you create your account, PayPal will ask you to add a bank account or card. This is how PayPal verifies you're a real person and where your money lands when someone pays you. Go to your Wallet, select "Link a bank account", and enter your routing number and account number (found on the bottom left of your checks). PayPal will deposit two small amounts into that account within a few days, then ask you to confirm those amounts to prove you own it.
If you don't have a bank account yet, you can link a debit card instead, though transfers will take longer and may cost more. Once your account is verified, you're ready to receive payments.
Key Takeaways
- You need a PayPal account connected to a real bank account or debit card before anyone can send you money.
- PayPal verifies your bank account by depositing two small amounts and asking you to confirm them — this takes a few days.
- Money sent to you stays in your PayPal balance until you transfer it to your bank account, which usually takes one to three business days.
- PayPal charges the sender a fee for most payments, not you, so receiving money is free on your end.
- You can receive money through a PayPal.me link, an invoice, or by giving someone your email address — each method works the same way once the money arrives.
Share your PayPal email or create a PayPal.me link
Once your account is set up, the simplest way to receive money is to give someone your PayPal email address — the one you used to sign up. They log into their PayPal account, click "Send Money", enter your email, type the amount, and hit send. The money lands in your PayPal balance immediately.
A faster option for casual payments is a PayPal.me link. Go to your PayPal settings, find "PayPal.me", and create a custom URL — something like paypal.me/yourname. You can share this link by text, email, or social media. When someone clicks it, they land on a page where they type in the amount and send it straight to you. No login required on their end, which makes it easier for friends or family who don't use PayPal often.
Both methods work the same way once the money arrives: it sits in your PayPal balance until you transfer it to your bank account.
Send an invoice if you're charging for work or goods
If you're selling something or charging for a service, use PayPal's invoice tool instead of just asking for money. Go to your account, click "Tools", then "Invoices". Fill in the buyer's email, what you're charging for, the amount, and when payment is due. PayPal will email them the invoice with a button to pay.
Invoices are better than casual payment requests because they create a record both of you can reference. If there's a dispute later — the buyer says they never received the item, or you say they didn't pay — the invoice proves what was agreed. You can also add a note about your return policy or payment terms, like "Payment due within 5 days".
The buyer pays the invoice the same way they'd send you money: the payment lands in your PayPal balance, and you transfer it to your bank account when you're ready.
Understand PayPal's fee structure and when money reaches your bank
PayPal charges the sender a fee for most payments — usually around 2.2% plus $0.30 for personal transfers between friends, or 2.2% plus $0.30 for goods and services payments. You don't pay this fee; the sender does. If a friend sends you $100, you receive $100 in your PayPal balance. If you're charging for work or selling something, the buyer pays the fee on top of your price.
Money you receive stays in your PayPal balance until you move it. To get it into your bank account, go to your Wallet, click "Transfer Money", select your linked bank account, and enter the amount. Standard transfers take one to three business days. PayPal doesn't charge you for this transfer, but your bank might (rare, but check your bank's policy).
If you need money faster, PayPal offers instant transfers to a debit card for a $0.25 fee per transfer. The money lands within 30 minutes instead of days.
Keep your account secure and watch for fraud
PayPal's Buyer Protection covers people who buy things from you, but it doesn't protect you if someone hacks your account or tricks you into sending money by pretending to be a buyer. Protect yourself by using a strong, unique password — at least 12 characters with numbers and symbols — and turning on two-factor authentication in your security settings.
Two-factor authentication means PayPal will text or email you a code every time someone logs in from a new device. This stops a hacker from accessing your account even if they steal your password. Set it up in your settings under "Security".
Watch out for scams where someone sends you money, asks you to buy something with it, then claims the payment was fraudulent and gets their money back. You'll be left out the cash you spent. If a payment seems suspicious — someone you don't know, an unusually large amount, or a request to buy gift cards — don't act on it. Contact PayPal's Resolution Center to ask about the payment before you do anything.
Dispute a payment if money doesn't arrive or the buyer claims fraud
If someone says they sent you money but it never showed up in your account, check your PayPal activity first. Log in, go to your transaction history, and search for their name or email. If the payment is there but marked "pending", it's still processing — wait one to three business days. If it's not there at all, ask the sender to confirm they actually completed the payment; sometimes people think they sent money when they only started the process.
If the payment was sent but you genuinely didn't receive it, or if a buyer claims you didn't deliver what you promised, use PayPal's Resolution Center. Go to your account, click "Resolution Center", and open a case. Explain what happened and provide any proof — screenshots of messages, photos of the item you shipped, tracking numbers, anything that shows you held up your end. PayPal will give the other person a chance to respond, then make a decision within 10 business days.
If PayPal rules against you, they can pull money from your PayPal balance or your linked bank account. This is why keeping records of every transaction matters — especially if you're selling things regularly.
Receive money from outside the United States
PayPal works in over 200 countries, but receiving money from abroad has extra steps. If someone outside the US sends you money, it may take longer to arrive and could cost more in fees. International transfers sometimes trigger PayPal's fraud detection, so you might get an email asking you to confirm the payment is real.
If you receive a lot of international payments, consider setting up a PayPal Business account and adding your country information to your profile. This tells PayPal you expect cross-border money and speeds up processing. You can also check your account settings to see which countries PayPal allows you to receive from — some countries have restrictions.
Currency conversion happens automatically if someone sends you money in a different currency. PayPal converts it to US dollars at their exchange rate, which includes a small markup. You can see the exact rate before you accept the payment.
Frequently Asked Questions
Can I receive money on PayPal without a bank account?
You can receive money, but you'll need a way to get it out of PayPal eventually. A debit card works as a backup, though transfers to a card take longer and may cost more than bank transfers. Some people keep money in their PayPal balance and spend it directly using a PayPal debit card, which you can order from your account.
What happens if someone sends me money and then disputes it?
PayPal will investigate the dispute and may pull the money back from your account or your linked bank account. If you sold something, provide proof you shipped it — a tracking number is strongest. If you sent money to a friend, it's harder to win a dispute, which is why PayPal asks you to choose "friends and family" or "goods and services" when sending.
How long does it take to receive money on PayPal?
Money lands in your PayPal balance instantly when someone sends it. Transferring that money to your bank account takes one to three business days with a standard transfer, or 30 minutes with an instant transfer (which costs $0.25).
Can I receive money on PayPal if I'm under 18?
PayPal requires you to be at least 18 to open an account in your own name. If you're younger, a parent or guardian can open an account and manage it for you, or you can wait until you turn 18.
What if PayPal closes my account after I receive money?
If PayPal closes your account, any money in your balance stays there for 180 days. You can still transfer it to your bank account during that time. After 180 days, PayPal may keep unclaimed funds. This is rare, but it's why you should transfer money to your bank account regularly instead of letting it sit in PayPal.