What you need to create a PayPal account

You can create a PayPal account in about five minutes with an email address, a password, and your name. PayPal will ask for your date of birth and address during signup. If you want to send money or receive payments beyond a small limit, you will also need to add a bank account, debit card, or credit card to your account — PayPal calls this "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. A Business account is also free but includes invoicing tools and lets you accept payments on a website. Most people start with Personal unless they are running a business or selling items regularly.

You do not need a PayPal Debit Card or PayPal Credit to open an account. Those are optional products you can add later if you want them.

Key Takeaways

  • You need only an email address and password to create a PayPal account, but adding a bank account or card lets you send and receive larger amounts.
  • Personal accounts are free and work for peer-to-peer transfers; Business accounts are also free and add invoicing and payment collection tools.
  • PayPal verifies your identity by asking for your name, date of birth, and address during signup.
  • Linking a bank account takes one to two business days to confirm, while debit and credit cards usually confirm instantly.
  • You can send money immediately after signup, but withdrawal and receiving limits depend on whether you have added a verified payment method.

Step-by-step account creation

Go to paypal.com and click "Sign Up" in the top right. Choose Personal or Business, then enter your email address and create a password. PayPal will send a confirmation link to your email — click it to verify your address.

Next, enter your full name, date of birth, and home address. PayPal uses this information to verify your identity and meet anti-fraud requirements. Make sure the name matches your bank account or card exactly, or linking a payment method later may fail.

After you complete these fields, your account is active. You can immediately send money to another PayPal user by their email address or phone number, but the amount you can send without a linked payment method is limited — usually a few hundred dollars per transaction, depending on your account age and history.

Linking a bank account or card

To send larger amounts or withdraw money to your bank, you need to link a payment method. Log into your account, go to Wallet (or "My Money" on mobile), and select "Link a card or bank account." You can add a debit card, credit card, or bank account.

For a debit or credit card, enter the card number, expiration date, and CVV. PayPal usually confirms the card instantly and you can use it right away. For 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 make two small deposits to your account (usually $0.01 and $0.02) within one to two business days. Once they arrive, log back into PayPal, go to your bank account settings, and enter the two amounts to confirm ownership.

Some banks take longer to process the verification deposits. If you do not see them after three business days, contact PayPal Support — they can sometimes confirm your account another way.

Sending and receiving money

To send money, click "Send Money" from your account home, enter the recipient's email address or phone number, and type the amount. If the recipient has a PayPal account, the money arrives instantly. If they do not, PayPal sends them a notification and they can claim the money by creating an account or cashing out to their bank.

To receive money, share your PayPal email address or phone number with the sender. They can send you money through their PayPal account, and it will land in your PayPal balance. You can then transfer it to your linked bank account (which takes one to three business days) or use it to send money to someone else.

PayPal charges no fee for sending money to friends and family using your PayPal balance or linked bank account. If you send money using a credit card, PayPal charges a fee (currently 2.2% plus $0.30 in the United States, though this varies by country). Receiving money from friends and family is always free.

Verification and account limits

PayPal places limits on new accounts to prevent fraud. When you first sign up, you can usually send a few hundred dollars per transaction and receive up to a certain amount per month. These limits increase as your account ages and you build a history of successful transactions.

To raise your limits faster, verify your identity by adding a linked bank account or card and confirming your phone number. Go to Settings, then Security, and click "Confirm your phone number." PayPal will send a code via text or call — enter it to verify.

If PayPal suspects unusual activity, it may temporarily limit your account and ask you to verify additional information. This is a security measure. Respond to PayPal's requests promptly — delays can extend the hold on your account.

Protecting your account from fraud

Use a strong, unique password that you do not use on other websites. Enable two-factor authentication by going to Settings, Security, and turning on "Two-Step Verification." PayPal will send you a code via text or email when you log in from a new device, adding a layer of protection.

Do not share your password or login code with anyone, even if they claim to be from PayPal. PayPal will never ask for your password via email or phone. If you receive a message claiming to be from PayPal asking for personal information, do not click any links — instead, log into PayPal directly through the official website and check your account.

Review your transaction history regularly. If you see a payment you did not make, report it to PayPal immediately through the Resolution Center. PayPal offers buyer and seller protection on most transactions, but you must report unauthorized activity within 60 days.

Troubleshooting common setup problems

If PayPal rejects your bank account during verification, the most common reason is a mismatch between the name on your PayPal account and the name on your bank account. Log into your bank and confirm the account holder's name, then update your PayPal profile if needed. Try linking again.

If the verification deposits do not arrive after three business days, your bank may be holding them or PayPal may have encountered an issue. Contact your bank first to confirm they received the deposits. If they did not, contact PayPal Support and ask them to resend the deposits or use an alternative verification method.

If you cannot receive the two-factor authentication code via text, go to Settings, Security, and switch to email delivery. If you still cannot access your account, use the "Forgot Password" link on the login page to reset it, or contact PayPal Support for help recovering your account.

Frequently Asked Questions

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

Yes, you can send money to other PayPal users using your PayPal balance, and you can receive money from anyone. However, your sending and receiving limits will be lower, and you cannot withdraw money to your bank. Linking a payment method removes most limits and lets you withdraw your balance.

How long does it take to transfer money from PayPal to my bank account?

Standard transfers take one to three business days. PayPal also offers Instant Transfer (available in the United States and some other countries) for a small fee, usually $0.25 per transfer, which deposits money within 30 minutes to an hour.

What happens if someone sends me money and then disputes it?

PayPal holds the money while they investigate. If the dispute is resolved in the sender's favor, PayPal removes the money from your account. If it is resolved in your favor, you keep it. Disputes typically take 10 business days to investigate, though complex cases take longer.

Can I have more than one PayPal account?

PayPal's terms of service say you should have only one Personal account per person. If you need separate accounts for business and personal use, you can have one Personal and one Business account linked to the same email address or different emails.

Is PayPal safe for sending money to strangers?

PayPal offers buyer protection if you send money as a "goods and services" payment (which includes a small fee), but not if you send it as a "friends and family" transfer. For transactions with people you do not know, use "goods and services" so you have recourse if something goes wrong.