What you need to create a PayPal account

You need an email address, a password, and either a debit card, credit card, or bank account number. PayPal will verify your identity using the card or bank details you provide—they charge a small temporary hold (usually $1.95 to $2.05) and then refund it within a few days. That hold proves the card or account is real and belongs to you.

You do not need a Social Security number to open the account, but you will need one later if you plan to send or receive money regularly, or if you want to withdraw money to your bank account. PayPal will ask for it when you reach those points.

Have your full legal name, address, and phone number ready. PayPal asks for all three during signup.

Key Takeaways

  • Go to paypal.com, click Sign Up, and choose Personal Account (not Business) unless you are running a business.
  • Enter your email, create a password, and provide your name, address, and phone number.
  • Add a debit card, credit card, or bank account—PayPal will charge and refund a small hold to verify it works.
  • Confirm your email address by clicking the link PayPal sends you, then log in and you are ready to send or receive money.
  • If you plan to withdraw money to your bank account or send money regularly, you will need to add your Social Security number later through the Resolution Center.

Step-by-step account creation

Go to paypal.com and click the Sign Up button in the top right. You will see two choices: Personal Account and Business Account. Choose Personal Account unless you are selling goods or services professionally. Personal accounts can still send and receive money for any reason—the Business option is for people who want invoicing tools and business reporting.

Enter your email address and create a password. The password must be at least 8 characters and include at least one number and one letter. PayPal will ask you to confirm your email by sending a link—check your inbox (and spam folder) for that email and click the link before moving forward.

Fill in your full legal name, date of birth, address, and phone number. Use the name that matches your ID or bank account. PayPal compares this information to verify you are who you say you are.

Add a payment method: debit card, credit card, or bank account. If you use a card, enter the full number, expiration date, and CVV (the three-digit code on the back). If you use a bank account, enter your routing number and account number—you can find both on a check or by logging into your bank's website. PayPal will charge a small hold ($1.95 to $2.05) to the card or account and refund it within three to five business days. This proves the payment method is real and belongs to you.

Confirming your email and logging in

After you submit your information, PayPal sends a confirmation email to the address you provided. Open that email and click the Confirm Your Email button or link. If you do not see it within a few minutes, check your spam or promotions folder.

Once you confirm your email, you can log in to your PayPal account. Go to paypal.com, click Log In, and enter your email and password. You will land on your dashboard, which shows your balance, recent activity, and options to send or request money.

Your account is now active and ready to use for sending money to friends, paying bills, or receiving payments from others.

Adding your Social Security number

PayPal does not require your Social Security number to open an account, but you will need to add it if you plan to withdraw money to your bank account or if you send and receive money regularly. PayPal is required by law to collect this information for tax reporting purposes.

To add your Social Security number, log in to your account, click the Settings icon (gear) in the top right, and select Account Settings. Click Financial Information on the left side, then Tax Information. Enter your full Social Security number and confirm it. PayPal will verify it matches your name and date of birth.

If you do not add your Social Security number when PayPal asks, your account may be limited—you will not be able to withdraw money or send large amounts. You can add it at any time, and the limit will be lifted within a few hours.

Linking a bank account instead of a card

If you prefer not to use a debit or credit card, you can link your bank account directly. During signup, choose Bank Account as your payment method instead of Card. Enter your routing number and account number (both appear on a check, or you can find them in your bank's app or website).

PayPal will make two small deposits to your account (usually $0.01 and $0.02, totaling $0.03) within one to two business days. Log back into your PayPal account, go to your bank account settings, and enter the two amounts PayPal deposited. This confirms you own the account.

Once confirmed, your bank account is linked and you can send money from it or withdraw PayPal money to it. Transfers to your bank account usually take one to three business days.

Security settings you should change right away

After you log in for the first time, spend two minutes on security. Click the Settings icon (gear) in the top right and select Security. Turn on Two-Factor Authentication by clicking the toggle next to it. PayPal will ask you to choose a method: text message (SMS) or an authenticator app like Google Authenticator or Microsoft Authenticator.

Text message is simpler if you do not already use an authenticator app. Choose it, enter your phone number, and PayPal will send you a code to confirm. After that, every time you log in from a new device or browser, PayPal will text you a code you must enter. This stops someone else from logging in even if they have your password.

You can also set up a backup phone number in the same Security section. If you lose access to your main phone, PayPal can send codes to the backup number instead.

What happens after you confirm your payment method

Once PayPal charges and refunds the hold on your card or bank account, your payment method is verified and active. You can now send money to anyone with an email address or phone number, request money from others, or receive payments if someone sends you money.

If you plan to receive money regularly—from friends splitting rent, from a side job, or from sales—tell the people sending you money your PayPal email address. They can send it directly to that address, and it will land in your PayPal balance within minutes (if they use a PayPal account) or within one to three business days (if they send it from a bank account or card).

You can withdraw money from your PayPal balance to your linked bank account at any time. Go to your Wallet, click Transfer Money, select Transfer to Your Bank, enter the amount, and click Transfer. The money usually arrives in one to three business days, depending on your bank.

Frequently Asked Questions

Can I use PayPal without linking a card or bank account?

No. PayPal requires at least one payment method to verify your identity. You must add a debit card, credit card, or bank account during signup. You do not have to use it to send money if you have a PayPal balance, but it must be on file.

What if the verification hold does not show up on my card or bank account?

The hold usually appears within 24 hours but can take up to three business days. Check your bank or card statement under pending transactions. If it does not appear after three days, your payment method may not be valid—try adding a different card or bank account. Contact your bank if you see the charge but PayPal says it failed.

Can I change my email address after I create my account?

Yes. Log in, click Settings, select Account Settings, and click Email Address on the left. You can add a new email and set it as your primary. PayPal will send a confirmation link to the new email. Your old email will still work to log in for 30 days after you change it.

Do I need a business account to send money to a friend?

No. A Personal Account is designed for sending and receiving money with friends and family. Business Accounts are for people who invoice customers or run a business. You can receive payments for any reason on a Personal Account.

What if I forget my password?

Go to paypal.com, click Log In, and click Forgot 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 through the Help Center on their website.