What you need to create a PayPal account

You need a valid email address, a phone number, and either a debit card, credit card, or bank account. PayPal will verify your identity using at least one of these payment methods before you can send or receive money. The whole process takes about 10 to 15 minutes if your information is correct the first time.

Have your Social Security number ready if you plan to receive payments or transfer money to your bank account. PayPal requires this for tax reporting purposes and to comply with federal anti-money-laundering rules. If you're under 18, you'll need a parent or guardian to open the account on your behalf.

You do not need to have a certain credit score or banking history. PayPal will accept you even if you've never had a bank account before, though some features may be limited until you verify your identity fully.

Key Takeaways

  • You need an email address, phone number, and at least one payment method (debit card, credit card, or bank account) to create a PayPal account.
  • PayPal will send a verification code to your email and phone during setup to confirm you control both.
  • Adding and confirming a bank account or card takes an extra 1 to 3 business days and unlocks the ability to send money and receive payments.
  • Your account is free to create and maintain; PayPal only charges fees when you send money internationally, receive payments as a business, or use certain services.

Step-by-step account creation

Go to paypal.com and click "Sign Up" in the top right corner. Choose whether you want a Personal account (for sending money to friends and paying bills) or a Business account (if you're selling goods or services). Most people start with Personal. Enter your email address, create a password at least 8 characters long, and enter your phone number.

PayPal will send a six-digit code to your email. Check your inbox (including spam) and enter that code on the screen. Then PayPal sends a second code to your phone via text message. Enter that code as well. This two-step verification confirms you own both the email and phone number.

Next, enter your full name, date of birth, and address. PayPal uses this to verify your identity and comply with federal regulations. Make sure the name matches your government ID if you plan to link a bank account later. Click "Agree and Create Account" after reviewing PayPal's User Agreement and Privacy Policy.

Adding a payment method to your account

After your account is created, PayPal will prompt you to add a debit card, credit card, or bank account. Click "Link a Card" or "Link a Bank Account" depending on what you have. If you're adding a card, enter the card number, expiration date, and CVV (the three-digit code on the back). PayPal will charge a small temporary hold to verify the card is real, then release it within a few days.

If you're linking a bank account, enter your routing number and account number. You can find these on a check or by logging into your bank's website. PayPal will make two small deposits (usually under $1 each) to your account within 1 to 3 business days. You'll then need to log back into PayPal and confirm the exact amounts of those deposits to prove you own the account.

You can add multiple cards and bank accounts to the same PayPal account. This gives you options for where money comes from when you send a payment or where it goes when you receive one.

Confirming your identity for higher limits

PayPal starts new accounts with sending and receiving limits. A Personal account can usually send up to $20,000 per transaction initially, but if you want to receive payments or send larger amounts, you'll need to confirm your identity more fully. PayPal may ask you to upload a photo of your government ID (driver's license or passport) and verify your Social Security number.

To upload your ID, go to your account settings, click "Security," and look for "Confirm Your Identity." Take a clear photo of the front and back of your ID and upload both. PayPal reviews this within a few hours to a few days. Once approved, your sending and receiving limits increase significantly.

If PayPal cannot verify your information automatically, they may ask you to answer security questions or provide additional documents. This is normal and does not mean anything is wrong. Respond as quickly as you can so your account is fully active.

Setting up security features

After your account is created, turn on two-factor authentication to protect it from unauthorized access. Go to Settings, click "Security," and select "Two-Step Verification." PayPal will send a code to your phone every time someone tries to log in from a new device. Even if someone has your password, they cannot access your account without this code.

Create a strong, unique password that you don't use anywhere else. Use a mix of uppercase and lowercase letters, numbers, and symbols. If you use the same password on multiple websites and one of them gets hacked, someone could use that password to break into your PayPal account and steal your money.

Consider setting up a security key if you have one. This is a small physical device (like a YubiKey) that you plug into your computer or tap to your phone to prove it's really you logging in. It's the most secure option available and prevents most types of account takeover.

What happens after you finish setup

Your account is ready to use immediately after you create it, but some features unlock gradually. You can send money to friends and pay bills right away using a linked card or bank account. You can receive money from other PayPal users, but the funds may be held for a few days while PayPal reviews the transaction.

If you want to transfer money to your bank account, you'll need to wait until your bank account is fully verified (1 to 3 business days after you confirm the deposit amounts). Transfers to your bank usually take 1 to 3 business days to arrive, though PayPal offers an instant transfer option for a small fee.

Keep your account information current. If you change your phone number, email address, or bank account, update PayPal right away. If your card expires, add a new one before the old one stops working so your payments don't fail.

Frequently Asked Questions

Do I have to use my real name on PayPal?

Yes. PayPal requires the name on your account to match your government ID. If you want to use a nickname or business name, you can change your display name in settings, but your legal name must be on file for verification and tax purposes.

What if I don't have a bank account yet?

You can create a PayPal account and link a debit card instead. You won't be able to transfer money out to a bank account, but you can send money to other PayPal users and pay online merchants. Once you open a bank account, you can link it to PayPal and unlock the full range of features.

Can I have more than one PayPal account?

PayPal's terms of service say you should only have one Personal account and one Business account. If you create multiple accounts, PayPal may freeze them all. If you need separate accounts for different purposes, contact PayPal support to discuss your situation before creating a second account.

How long does it take to fully verify my account?

Email and phone verification happens instantly. Adding and confirming a bank account takes 1 to 3 business days. Uploading your ID for identity confirmation usually takes a few hours to a few days. In total, you can have a fully verified account within a week if everything goes smoothly.

Is it safe to link my bank account to PayPal?

Yes, if you follow basic security practices. Use a strong password, turn on two-factor authentication, and don't share your login details. PayPal is encrypted and regulated by the Consumer Financial Protection Bureau. Your bank account information is not shared with merchants when you pay them through PayPal.