What you need to set up PayPal
To create a PayPal account, you need a valid email address, a password you choose, and basic personal information—your name, address, and date of birth. If you want to send or receive money, you'll also need to add a payment method: a bank account, debit card, or credit card. PayPal will verify your identity before you can move larger amounts of money, which usually takes a few minutes to a few days depending on the verification method you choose.
You don't need to have a certain credit score, and PayPal doesn't run a hard credit check when you open an account. The account itself is free to create. You only pay fees when you send money to someone outside the US, receive money as a business payment, or use certain other services—personal transfers between friends in the US have no fee.
Key Takeaways
- You need an email address, password, and personal information to create a PayPal account, but you can start with just that and add payment methods later.
- PayPal will ask you to verify your identity before you can send or receive large amounts, usually through your bank account or a small deposit to your card.
- Personal transfers between friends in the US are free; fees apply to international transfers, business payments, and certain other transactions.
- Once your account is set up and verified, you can link multiple payment methods and manage them from your account settings.
Step-by-step account creation
Go to paypal.com and click the "Sign Up" button. PayPal will ask you to choose between a Personal account or a Business account. A Personal account is for sending money to friends, paying bills, and shopping online. A Business account is for running a business and accepting payments from customers. Most people start with Personal.
Enter your email address and create a password. PayPal requires at least 8 characters, and it's stronger if you mix uppercase and lowercase letters, numbers, and symbols. Then enter your first and last name, address, and date of birth. PayPal will send a confirmation email to the address you provided—click the link in that email to confirm your address is real.
After confirmation, PayPal will ask you to add a payment method. You can link a bank account, debit card, or credit card. If you link a bank account, PayPal will make two small deposits (usually under $1 each) to that account within a few business days. You'll then log back into PayPal and enter the amounts of those deposits to confirm you own the account. This is how PayPal verifies your bank account.
Linking a bank account versus a card
Linking a bank account takes longer—usually 3 to 5 business days for the verification deposits to arrive—but it's the most complete way to verify your identity. Once verified, you can send and receive larger amounts without additional restrictions. You'll also see your full transaction history in PayPal, and you can transfer money back to your bank account for free.
Linking a debit or credit card is faster. PayPal will verify the card immediately or within a day. However, there are limits on how much you can send before PayPal asks for additional verification, such as a photo ID or a utility bill. If you plan to send or receive significant amounts of money, adding a bank account is the better choice.
You can add multiple payment methods to one PayPal account. Many people link both a bank account and a card, then choose which one to use for each transaction.
Verification and limits on your account
When you first create a PayPal account, you have a sending limit—the total amount you can send in a rolling 12-month period before PayPal asks for more information. This limit varies, but it's often around $20,000 for unverified accounts. Once you verify your bank account or provide a photo ID, this limit usually increases or is removed entirely.
PayPal may also ask you to verify your identity by uploading a government-issued ID (driver's license or passport) and sometimes a photo of yourself. This happens if you're sending large amounts, receiving money regularly, or if PayPal's automated systems flag your account for review. The process usually takes 24 to 48 hours.
If you're receiving money from others—for example, if friends are paying you back for shared expenses—PayPal may ask you to confirm that you're not running a business. Personal accounts are meant for occasional transfers between individuals, not for regular business income.
Securing your account after creation
Once your account is active, set up two-factor authentication (also called two-step verification). Go to your account settings, find "Security," and turn on two-factor authentication. PayPal will send you a code via text or email every time you log in from a new device. This makes it much harder for someone to access your account even if they have your password.
Use a strong, unique password—one you don't use for other websites. If you have trouble remembering it, use a password manager like Bitwarden or 1Password. Never share your PayPal password with anyone, and don't log into PayPal from public WiFi without a VPN.
Check your account activity regularly. PayPal shows all transactions in your Activity or History section. If you see something you didn't authorize, report it to PayPal immediately through your account settings or by calling their support line.
What happens after your account is verified
Once PayPal confirms your identity, you can send money to anyone with an email address or phone number. They'll receive a notification and can either accept the payment into their PayPal account or have it sent to their bank account. You can also request money from others—they'll get a notification asking them to pay you.
You can use your PayPal balance to shop online at millions of retailers, or transfer money to your bank account. Transfers to your bank account are free and usually arrive within 1 to 3 business days. If you choose instant transfer (available in most US states), the money arrives within 30 minutes, but PayPal charges a small fee, usually $0.25 to $1.50 depending on the amount.
If you receive money from someone, it sits in your PayPal balance until you spend it, transfer it to your bank, or send it to someone else. You can hold money in PayPal indefinitely—there's no expiration date.
Frequently Asked Questions
Can I create a PayPal account without a bank account?
Yes. You can create an account with just a debit or credit card. However, you'll have lower sending limits until you verify your identity with a photo ID or add a bank account later. If you plan to send or receive significant amounts, adding a bank account is worth the wait for verification.
How long does it take to verify my PayPal account?
Bank account verification takes 3 to 5 business days for the deposits to arrive, then a few minutes for you to confirm them. Card verification is usually instant or within 24 hours. Photo ID verification typically takes 24 to 48 hours. The exact timeline depends on your bank and PayPal's review queue.
What if I forget my PayPal password?
Go to paypal.com and click "Log In," then click "Having trouble logging in?" PayPal will send a password reset link to your email address. Click the link and create a new password. If you can't access your email, contact PayPal support through your account or by phone to verify your identity another way.
Can I delete my PayPal account?
Yes. Log into your account, go to Settings, then Account, and look for "Close your account." PayPal will ask you to confirm and may ask why you're leaving. You can close an account at any time, but you must have a zero balance first—transfer or spend any remaining money before closing.
Is PayPal safe for sending money to strangers?
PayPal offers buyer and seller protection for certain transactions, but personal transfers between friends have limited protection. Only send money to people you trust. If you're buying something from someone you don't know, use PayPal's "Goods and Services" option (which charges a fee) rather than "Friends and Family," because it includes dispute resolution if the item doesn't arrive or isn't as described.