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 or bank account number. PayPal does not charge to create an account. You will need to verify your identity before you can send or receive money, which takes a few minutes more if you have a card or bank account linked already.

PayPal offers two account types: Personal and Business. A Personal account is free and works for sending money to friends, paying bills, and receiving payments from others. A Business account is also free but includes invoicing tools and is meant for people who sell goods or services. Most people start with Personal.

You do not need a Social Security number to create the account itself, but PayPal will ask for one during verification if you plan to receive money or withdraw funds. This is a federal requirement, not a PayPal rule.

Key Takeaways

  • You need only an email address and a password to create a PayPal account; adding a card or bank account takes another two minutes.
  • PayPal will ask you to verify your identity before you can send money or withdraw funds, which usually happens automatically if you link a debit card.
  • A Personal account is free and works for most peer-to-peer payments; a Business account is also free but adds invoicing features.
  • If you do not have a card or bank account, you can still create an account but will not be able to send or receive money until you add one.

Step-by-step: creating your account

Go to paypal.com and click "Sign Up" in the top right corner. Choose Personal or Business. Enter your email address, create a password (at least 8 characters, with a mix of uppercase, lowercase, numbers, and symbols), and enter your full name and date of birth. PayPal will send a confirmation email to the address you provided—click the link in that email to confirm it is yours.

After confirmation, PayPal asks for your address. Enter your street address, city, state, and ZIP code as they appear on official documents. This is the address PayPal will use to verify your identity. If you move later, you can update it in your account settings.

Next, add a payment method. Click "Link a Card or Bank Account" and choose which one you have. If you use a debit card, enter the card 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 at the bottom of a check or in your bank's online portal under account details.

PayPal will verify your card or bank account within minutes. For a debit card, verification is usually instant. For a bank account, PayPal may make two small deposits (under $1 each) to your account and ask you to confirm the amounts—this takes one to two business days.

How PayPal verifies your identity

PayPal uses the information you provide—name, address, date of birth—to check against public records and credit bureaus. This is called identity verification, and it happens automatically in the background. Most people pass verification without doing anything else.

If PayPal cannot verify you automatically, it will ask you to upload a photo of your ID (a driver's license, passport, or state ID card). Take a clear photo of the front and back, make sure all text is readable, and upload both images through your account settings. PayPal reviews these within 24 to 48 hours.

Once you are verified, you can send and receive money. If you are not verified, you can still use PayPal to pay for things online, but you cannot send money to other people or withdraw funds to your bank account.

Linking a bank account vs. a debit card

Both work, but they have different trade-offs. A debit card verifies instantly and lets you send money right away. The downside is that PayPal charges a fee if you send money to someone using a debit card (currently 2.99% plus $0.30 per transaction for peer-to-peer payments). Receiving money is free.

A bank account takes longer to verify (one to two business days) but has no fee when you send money to friends or family—PayPal calls this a "friends and family" transfer. If you send money as a "goods and services" payment (for something you bought), there is a fee either way. Withdrawing money to your bank account is also free.

If you plan to send money to friends regularly, a bank account saves you money. If you need to send money today and do not have time to wait for verification, use a debit card.

What happens after you verify

Once your identity is verified, you can send money to anyone with an email address or phone number. They do not need a PayPal account—PayPal will send them a link to claim the money, and they can cash it out or create an account. You can also request money from others, pay bills through PayPal's bill pay feature, and link your PayPal account to online stores to check out faster.

PayPal holds your money in your account balance until you withdraw it to your bank account or spend it. Withdrawals to a linked bank account take one to three business days. You can withdraw as often as you want, and there is no fee.

If you receive money from someone, it lands in your PayPal balance immediately. You can then transfer it to your bank account, send it to someone else, or leave it in PayPal to spend later.

Security and fraud protection

PayPal encrypts your financial information and does not share your card or bank account number with the people you send money to. When you pay someone, they see only your name and email address.

PayPal also offers Buyer Protection: if you send money for something and do not receive it, or receive something that does not match the description, you can file a dispute within 180 days. PayPal investigates and refunds you if the seller cannot prove they sent what you paid for. This protection applies only to "goods and services" payments, not "friends and family" transfers.

If your account is hacked or someone uses your card without permission, report it to PayPal immediately through the Resolution Center. PayPal will investigate and refund you if the charge was fraudulent. Keep your password strong and do not share it with anyone.

Common problems and how to fix them

Your account is limited. PayPal sometimes limits new accounts as a security measure. You will see a message in your account saying what information is needed. Usually it is a photo of your ID or a phone call to verify your identity. Follow the steps PayPal shows you, and the limit lifts within 24 to 48 hours.

Your bank account will not link. Make sure you entered your routing number and account number correctly—check your check or your bank's website. If the numbers are right, your bank may not allow third-party connections. Call your bank and ask if they block PayPal connections; if they do, ask them to allow it. Then try linking again.

You forgot your password. Go to paypal.com, click "Log In," and click "Forgot Password?" Enter your email address. PayPal sends a link to reset your password. Click the link and create a new one. If you do not receive the email, check your spam folder or contact PayPal support.

Verification is taking longer than expected. If PayPal asked for a photo of your ID and you uploaded it more than 48 hours ago, contact PayPal support through the Help Center. Provide your account email and a description of what you uploaded. They can tell you if there was a problem with the image or if verification is still in progress.

Frequently Asked Questions

Do I need a credit card to open a PayPal account?

No. A debit card or bank account works just as well. If you have neither, you can still create an account, but you will not be able to send or receive money until you add one.

Can I use PayPal without verifying my identity?

Yes, but only for paying online. You cannot send money to other people or withdraw funds without verification. Verification usually happens automatically when you link a card or bank account.

What if I do not have a bank account or debit card?

You can create a PayPal account with just an email address, but you will need to add a payment method before you can send or receive money. Some people use a prepaid debit card instead of a bank account—PayPal accepts those too.

How long does it take to verify a bank account?

One to two business days. PayPal makes two small deposits to your account and asks you to confirm the amounts. Once you confirm, your account is verified and you can send money with no fees.

Is it safe to link my bank account to PayPal?

Yes. PayPal encrypts your information and does not share your account number with sellers. If someone uses your account without permission, PayPal refunds fraudulent charges. Keep your password strong and do not share it.