What you need to create a PayPal account
You can set up 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 open an account. You will need to verify your identity before you can send or receive money, which usually means confirming your email address and linking a payment method.
PayPal has two account types: Personal and Business. A Personal account is free and works for sending money to friends, paying bills, and receiving payments from individuals. A Business account is also free but includes invoicing tools and is designed for people who sell goods or services. 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 funding source before you can send or receive money.
- The entire setup takes 10 to 15 minutes, and there is no cost to create an account.
- You can link multiple cards or bank accounts to the same PayPal account, and you can change your funding source at any time.
Step-by-step: creating your account
Go to paypal.com and click the "Sign Up" button at the top of the page. Choose "Personal Account" unless you plan to invoice customers or run a business. Enter your email address, create a password (PayPal requires at least 8 characters, including uppercase, lowercase, and a number or symbol), and enter your first and last name.
PayPal will send a confirmation email to the address you provided. Open that email and click the verification link. This step confirms that you own the email address and takes about 30 seconds. If you do not see the email within a few minutes, check your spam folder.
After you verify your email, PayPal will ask you to add a payment method. You can link a debit card, credit card, or bank account. Enter the card number or bank routing and account number. PayPal will charge a small amount (usually $0.01 to $0.05) to verify the card or account, then refund it. This process takes one to two business days.
Once your payment method is verified, your account is active and you can send money to other PayPal users or pay for purchases online. You can receive money from other PayPal users immediately, though the funds may take one to three business days to appear in your linked bank account.
Linking a bank account versus a card
A bank account and a card serve different purposes. If you link a debit or credit card, PayPal can charge it instantly when you send money or make a purchase. The card issuer (your bank or credit card company) may charge a fee for the transaction, depending on your card agreement. Linking a card takes a few minutes and is verified immediately or within one to two business days.
If you link a bank account, PayPal can pull money directly from your checking or savings account. Bank transfers are usually free, but they take one to three business days to complete. You will need your routing number (the nine-digit code at the bottom left of your checks) and your account number. PayPal verifies bank accounts by depositing two small amounts and asking you to confirm them, which takes one to two business days.
Most people link both. Use the bank account for large transfers or when you have time to wait, and use the card for immediate payments. You can set a default funding source in your account settings, and you can change it for each transaction.
Confirming your identity and limits
When you first create an account, PayPal places a sending limit on how much money you can transfer. The limit depends on your account age and history. New accounts typically can send $500 to $2,000 in the first 24 hours. After that, the limit increases gradually as you use the account.
To raise your limit faster, you can confirm your identity by providing your Social Security number, date of birth, and address. PayPal will verify this information against public records. This step is optional but recommended if you plan to send large amounts or receive regular payments. Identity confirmation takes a few minutes and does not cost anything.
Once your identity is confirmed, you can send up to $20,000 per transaction and receive unlimited amounts. If you exceed the sending limit, PayPal will hold the money in your account until you confirm your identity or until 180 days have passed.
What happens after you link a payment method
After you verify your email and link a payment method, your account is ready to use. You can immediately send money to anyone with a PayPal account or email address. If you send money to someone who does not have a PayPal account, they will receive an email asking them to claim the payment, and they have 30 days to do so.
You can also receive money from other PayPal users right away. The money will appear in your PayPal balance within minutes, but if you want to move it to your bank account, it will take one to three business days. You can leave the money in your PayPal account and use it to send payments or make purchases online without transferring it to your bank.
PayPal charges a fee when you send money to someone outside the United States or when you receive a payment from a business (not a friend). Sending money to friends within the US is free if you use a bank account or debit card. Receiving money from a friend is always free. You can see the exact fee before you confirm any transaction.
Security and protecting your account
PayPal uses encryption to protect your card and bank account information. Your payment details are never shared with the person or business you are sending money to. When you pay someone through PayPal, they see only your email address and name, not your card or account number.
To keep your account secure, use a strong password that you do not use on other websites. Enable two-factor authentication in your account settings: go to Settings, then Security, then Two-Step Verification. PayPal will send you a code by text or email every time you log in from a new device. This adds a layer of protection against unauthorized access.
If you notice a transaction you did not make, report it to PayPal within 60 days. PayPal's Buyer Protection covers purchases made through the platform, and PayPal's Seller Protection covers sellers who follow PayPal's shipping and payment rules. If you send money to the wrong person or if someone sends you money by mistake, contact PayPal support as soon as possible.
Frequently Asked Questions
Do I need a credit card to open a PayPal account?
No. You can use a debit card or link a bank account instead. A credit card is optional. If you do not have any of these, you cannot open a PayPal account, because PayPal needs a way to verify your identity and move money.
Can I use PayPal without confirming my identity?
Yes. You can send and receive money with just an email address and a linked payment method. Confirming your identity (by providing your Social Security number) is optional but recommended if you plan to send large amounts or receive regular payments. It also raises your sending limit.
How long does it take to verify a bank account?
PayPal deposits two small amounts into your bank account, usually within one to two business days. You then log into PayPal and confirm the amounts. Once you confirm, your bank account is verified and you can use it immediately. The whole process takes two to four business days from start to finish.
What if I forget my PayPal password?
Go to paypal.com and click "Log In". Click "Forgot password?" and enter your email address. PayPal will send you a link to reset your password. 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 delete my PayPal account?
Yes. Go to Settings, then Account, then Close Your Account. PayPal will ask you to confirm and will explain any consequences (such as losing access to past transactions). You can close your account at any time, but you cannot reopen it with the same email address for 90 days.