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 basic personal information. PayPal does not charge you to open an account. You will need to decide whether you want a Personal account (for sending money to friends and paying online) or a Business account (if you sell goods or services), though you can switch between them later.

A Personal account is the standard choice for peer-to-peer transfers and online shopping. A Business account gives you access to invoicing tools and seller protections if you plan to receive payments for work or products. Both types work the same way for receiving money from others.

To link your account to a bank account or card later—which you will need to do to move money in or out—you will need the routing number and account number for a U.S. bank account, or a debit or credit card number. PayPal will verify your bank account by depositing two small amounts (usually under $1 each) that you confirm back to them, which takes a few business days.

Key Takeaways

  • You need only an email address and password to create a PayPal account; no payment method is required at signup.
  • Personal accounts are for sending money and shopping; Business accounts add invoicing and seller tools.
  • Linking a bank account or card requires your routing and account number, or card details, and takes a few business days to verify.
  • You can send money to anyone with an email address, but they must claim the payment within 30 days or it returns to you.
  • PayPal holds new accounts for 21 days before allowing large transfers, a security measure called a holding period.

Step-by-step account creation

Go to paypal.com and click "Sign Up" in the top right corner. Choose Personal or Business account type. Enter your email address, create a password (PayPal requires at least 8 characters, including uppercase, lowercase, and a number or symbol), and click Next.

Fill in your full name, date of birth, and address. PayPal uses this information to verify your identity and comply with banking regulations. Click Next. You will see a summary of your account details. Review them and click "Agree and Create Account." PayPal will send a confirmation email to the address you provided—open it and click the link to confirm your email is real.

You now have a working PayPal account. You can receive money immediately, but PayPal will not let you send large amounts or withdraw funds until you add and verify a payment method.

Adding and verifying a bank account

Log into your PayPal account and click your profile icon in the top right. Select "Wallet" (or "Account" on mobile). Click "Link a bank account." Enter your bank's name or routing number. PayPal will connect to your bank and show your account details—confirm they are correct and click "Link Bank Account."

PayPal deposits two small amounts into your bank account within one to two business days. Check your bank statement for these deposits (they appear as "PAYPAL" in the description). Return to PayPal, go to Wallet, find the bank account you just linked, and click "Confirm." Enter the two amounts PayPal deposited. Once confirmed, your bank account is fully linked and you can send and receive money without limits.

If you do not want to wait for bank verification, you can add a debit or credit card instead. Click "Link a card" in your Wallet, enter the card number, expiration date, and CVV, and click "Link Card." Cards verify instantly, though PayPal may place a temporary hold on your account for security reasons.

Sending money to another person

Click "Send Money" from your PayPal home page. Enter the email address or phone number of the person you want to pay. If they do not have a PayPal account, they will receive an email asking them to claim the payment—they have 30 days to do so, or the money returns to you automatically.

Enter the amount and select the reason (goods and services, or personal transfer). Personal transfers are free; goods and services transfers charge a fee (usually 2.99% plus $0.30 for U.S. transactions). Click "Send." The money leaves your PayPal balance or linked bank account immediately. If the recipient has a PayPal account, they see the money in their account right away.

Keep in mind that if you are sending money for a purchase, the recipient can dispute the transaction within 180 days. If you are sending money as a gift or personal transfer, you have less protection if something goes wrong—use goods and services only when you are buying something or paying for work.

Understanding PayPal's holding period for new accounts

When you first create a PayPal account, PayPal holds any money you receive for 21 days before you can withdraw it. This is a security measure to prevent fraud. During the holding period, you can still send money out, but you cannot move received funds to your bank account.

The holding period ends automatically after 21 days. You can shorten it by confirming your identity (uploading a photo ID) or by completing a certain number of successful transactions. Some sellers and businesses can request early release of funds, but as a new personal account holder, you will likely wait the full 21 days for your first received payment.

After the holding period expires and you have a history of normal activity, PayPal removes the restriction and funds are available immediately upon receipt.

Keeping your account secure

Use a strong, unique password—one you do not use on any other website. Enable two-factor authentication by going to Settings, Security, and turning on "Two-Step Verification." PayPal will ask for a code from your phone or email every time you log in from a new device, which stops someone who steals your password from accessing your account.

Do not share your password or login link with anyone, even if they claim to be from PayPal. PayPal will never ask you to confirm your password by email or text. If you receive a message asking you to "verify your account" or "confirm your details," it is almost certainly a scam—go directly to paypal.com instead of clicking any link in the message.

Review your account activity regularly. Click "Activity" on your home page to see all transactions. If you see a payment you did not make, report it to PayPal immediately by clicking the transaction and selecting "Report a Problem." PayPal investigates unauthorized transactions and can reverse them.

Withdrawing money from PayPal to your bank account

Click "Wallet" and then "Transfer Money." Select "Transfer to your bank." Choose the bank account you linked earlier, enter the amount, and click "Transfer Now." The money leaves your PayPal balance immediately, but it takes one to three business days to appear in your bank account, depending on your bank.

There is no fee to transfer money to a linked bank account. If you want the money faster, PayPal offers "Instant Transfer" to a debit card for a small fee (usually $0.25 to $2, depending on the amount). Instant transfers arrive within 30 minutes.

If you have not verified your bank account yet, PayPal will not let you withdraw. You must complete the two-deposit verification process first, or add a debit card and use Instant Transfer instead.

Frequently Asked Questions

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

Yes. You can create an account and receive money with only an email address. However, you will not be able to withdraw funds or send money until you link a bank account or card. You can add these later whenever you are ready.

What happens if someone sends me money and I do not have a PayPal account yet?

PayPal sends you an email with a link to claim the payment. You have 30 days to create an account and accept it. If you do not claim it within 30 days, the money returns to the sender automatically. You do not lose it—the sender gets it back.

Is PayPal safe for sending money to people I do not know?

PayPal offers buyer protection for goods and services purchases, which covers you if the seller does not deliver or sends something different from what you paid for. Personal transfers have no protection, so only use those for people you trust. For purchases from strangers, always choose "goods and services" as the payment reason.

Can I have more than one PayPal account?

PayPal allows one Personal account and one Business account per person, but both must use different email addresses. You cannot have two Personal accounts or two Business accounts. If you need both types, you can switch your existing account from Personal to Business in Settings.

How long does it take to verify my bank account?

PayPal deposits two small amounts within one to two business days. Once you see them in your bank statement, you enter the amounts into PayPal to confirm—this takes a few minutes. The entire process usually takes three to five business days from start to finish.