What you need to open a PayPal account

You can open a PayPal account in about 15 minutes with an email address, a password, and either a debit card, credit card, or bank account number. PayPal does not charge you to create the account itself. You will need to verify your identity before you can send money or receive payments above small amounts, which means having a valid government ID ready if you plan to use the account for anything beyond browsing.

PayPal offers two account types: Personal and Business. A Personal account is free and lets you send and receive money from friends, family, and online sellers. A Business account costs nothing to open but charges fees when you receive payments for goods or services — useful if you plan to sell things or invoice clients. Most people start with Personal.

Key Takeaways

  • You need an email address, a password, and a payment method (debit card, credit card, or bank account) to open a PayPal account.
  • PayPal will ask you to confirm your email address and link a payment method before you can send money or receive payments.
  • Identity verification requires a government ID and usually takes a few minutes, but PayPal may ask for additional documents if something looks unusual.
  • Once verified, you can send money to anyone with an email address, pay online at stores that accept PayPal, or request money from others.
  • Personal accounts are free; Business accounts are also free to open but charge fees when you receive payments for goods or services.

Step-by-step: creating your account

Go to paypal.com and click "Sign Up" in the top right corner. PayPal will ask you to choose between Personal and Business; select Personal unless you plan to invoice customers or sell items. Enter your email address, create a password (at least 8 characters, with a mix of letters and numbers), and provide your name, address, and phone number.

Next, link a payment method. You can add a debit card, credit card, or bank account. If you use a card, enter the card number, expiration date, and CVV. If you use a bank account, you will need your routing number and account number — you can find these on a check or in your online banking portal. PayPal will ask which method you want to use as your primary payment source; you can change this later.

PayPal will send a confirmation email to the address you provided. Open that email and click the confirmation link. Your account is now active, though you will have limits on how much you can send or receive until you verify your identity.

Identity verification and account limits

When you first open a PayPal account, you can send up to $500 in a single transaction and receive payments, but PayPal may hold the money for up to 21 days while they review the transaction. To lift these limits and access your money faster, you need to verify your identity.

PayPal will ask for your date of birth, the last four digits of your Social Security number, and a government-issued ID (driver's license, passport, or state ID). You can upload a photo of your ID through the PayPal app or website. Verification usually takes a few minutes, though PayPal may request additional documents — such as a utility bill or bank statement — if they cannot confirm your information through their standard checks.

Once verified, you can send and receive larger amounts without holds. The exact limits depend on your account history and activity, but verified accounts typically have no practical ceiling for personal transfers.

Linking a bank account for faster withdrawals

When you withdraw money from PayPal to your bank account, the transfer takes one to three business days. To speed this up, you can link your bank account directly to PayPal during setup or add it later in your account settings.

Go to Wallet (in the app) or Account Settings (on the website), select "Linked Accounts," and choose "Link a Bank Account." Enter your routing number and account number. PayPal will make two small deposits to your bank account — usually within one to two business days — and ask you to confirm the amounts. Once confirmed, your bank account is linked and you can withdraw money faster.

You can also use PayPal's instant transfer feature to move money to a linked debit card in minutes, though this charges a small fee (usually $0.25 to $1.50 depending on the amount).

What happens after you verify your email

Once your email is confirmed, you can immediately send money to anyone with an email address or phone number, even if they do not have a PayPal account yet. They will receive a notification and can claim the money by opening a PayPal account or adding it to an existing one.

You can also use your PayPal account to pay at online stores that accept PayPal — just log in at checkout instead of entering your card details. This is faster and more secure because the store never sees your card number. If you link a debit card or credit card, PayPal will charge that card when you make a purchase; if you link a bank account, PayPal will pull money directly from your bank.

You can request money from others through PayPal as well. In the app or website, select "Request," enter the person's email or phone number, type the amount, and add a note explaining why (rent, dinner, loan repayment). They will receive a notification and can pay you directly through PayPal.

Security and fraud protection

PayPal covers purchases made through the platform with Buyer Protection, which means if you pay for something and it never arrives or is not as described, you can file a dispute and PayPal will usually refund you. This protection applies to goods and services, not to money sent to friends or family.

To keep your account safe, use a strong password (at least 12 characters if possible), enable two-factor authentication in your security settings, and never share your password or login details. If you see a transaction you did not make, report it to PayPal immediately through the Resolution Center in your account.

PayPal also monitors accounts for unusual activity and may temporarily lock your account if they detect something suspicious. If this happens, you will receive an email with instructions to verify your identity again or answer security questions. This is a protection for you, not a penalty.

Fees you should know about

Sending money to friends and family in the United States through PayPal is free if you use your bank account or linked debit card. If you send money using a credit card, PayPal charges 2.2% plus $0.30 per transaction. Receiving money from friends and family is always free.

If you open a Business account and receive payments for goods or services, PayPal charges 2.99% plus $0.30 per transaction for standard payments. Instant transfers to a debit card cost $0.25 to $1.50 depending on the amount. International transfers have higher fees and exchange rates that vary by country.

You can see all fees before you complete a transaction, so there are no surprises. If you are unsure whether a fee applies, check the PayPal fee schedule on their website or ask in the app before sending money.

Frequently Asked Questions

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

No, PayPal requires at least one payment method to open an account. 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. Some people use a prepaid debit card as an alternative.

How long does it take to verify my identity?

Identity verification usually takes a few minutes after you upload your government ID. In some cases, PayPal may ask for additional documents like a utility bill or bank statement, which can add a few days. You can still use your account while verification is pending, but you will have transaction limits.

What if I forget my PayPal password?

Go to paypal.com and click "Log In," then select "Forgot Password?" Enter your email address and PayPal will send you a link to reset it. Click the link in your email and create a new password. If you do not receive the email, check your spam folder or contact PayPal support.

Can I have more than one PayPal account?

PayPal allows one Personal account and one Business account per person, but you cannot link them together. If you open multiple accounts with the same email address, PayPal may close them. Use separate email addresses if you need both a Personal and Business account.

Is PayPal safe for sending money to strangers?

Sending money to strangers carries risk because money sent as a personal transfer (friends and family) is not covered by Buyer Protection. Only use the "Goods and Services" payment option if you are paying a stranger for something, because that option includes protection if the item does not arrive or is misrepresented.