Set up a PayPal account and link a bank account or card
To receive money through PayPal, you need a PayPal account first. Go to paypal.com, click "Sign Up," and choose either a Personal or Business account. Personal accounts are free and work for most people receiving payments from friends, family, or small sales. Business accounts cost nothing to open but charge fees on transactions, so pick based on whether you plan to receive money regularly.
Once your account is created, PayPal will ask you to confirm your email address and set a password. After that, add a bank account or debit card so PayPal knows where to send your money. Click "Wallet" in your account menu, then "Link a bank account" or "Link a card." You'll need your routing number and account number (found on the bottom left of a check) or your card details. PayPal will make two small deposits to your bank account within a few days—you'll need to confirm the amounts to prove you own the account.
Key Takeaways
- A Personal PayPal account is free to open and works for receiving money from anyone, though Business accounts are better if you receive payments regularly.
- You must link a real bank account or debit card to your PayPal account before you can withdraw money; PayPal will verify it with two small test deposits.
- When someone sends you money, it lands in your PayPal balance first, and you can then transfer it to your bank account, which usually takes one to three business days.
- PayPal charges fees on some transactions—Personal accounts have no fee for money sent as "Friends and Family," but "Goods and Services" payments include a 2.2% plus $0.30 fee that the sender usually pays.
- Your PayPal email address is how people send you money, so keep it secure and do not share your password with anyone.
Share your PayPal email address or payment link
Once your account is set up and verified, you can receive money. The simplest way is to give someone your PayPal email address—the one you used to sign up. They log into their PayPal account, click "Send Money," enter your email, type the amount, and choose whether it's a personal transfer (Friends and Family) or a payment for goods or services. Personal transfers are free for the sender; payments for goods and services include a fee.
If you want to make it even easier, you can create a payment link. In your PayPal account, go to "Tools" and select "Create a payment link." Enter the amount you want to receive, add a description if you want, and PayPal will generate a link you can text, email, or post anywhere. When someone clicks it, they go straight to a page where they can pay you without needing to know your email address.
Understand where the money lands first
When someone sends you money through PayPal, it does not go straight to your bank account. It lands in your PayPal balance first. You can see this balance in your account dashboard under "Wallet." From there, you decide what to do with it: spend it using a PayPal debit card, send it to someone else, or transfer it to your bank account.
To move money from PayPal to your bank, click "Wallet," then "Transfer Money," then "Transfer to your bank." Select the bank account you linked earlier, enter the amount, and click "Transfer." PayPal will process it, and the money will show up in your bank account in one to three business days. There is no fee for this transfer on Personal accounts.
Know the difference between Friends and Family and Goods and Services
PayPal offers two ways to send and receive money, and they work differently. Friends and Family transfers are meant for personal payments—splitting rent, paying back a loan, sending a birthday gift. The sender pays nothing, and you receive the full amount. However, Friends and Family transfers have no buyer protection, so if someone claims they did not authorize the payment, PayPal may reverse it and take the money back from you.
Goods and Services payments are for when you are selling something or providing a service. The sender pays a fee (2.2% of the amount plus $0.30), which they usually cover, so you receive the full amount they intended. These payments come with buyer protection—if the buyer disputes the charge, PayPal will investigate. You can also issue refunds easily. Use Goods and Services when money is tied to a real transaction, not just a personal favor.
Do not use Friends and Family to receive payment for something you sold or a service you provided. If a buyer disputes it, you have almost no recourse, and PayPal may permanently limit your account.
Check your PayPal balance and transaction history
Every time money arrives, PayPal sends you an email notification. You can also check your balance anytime by logging into your account and looking at the "Wallet" section. Your current PayPal balance appears at the top, and below it is a list of recent transactions—money received, transfers out, fees, and refunds.
Click on any transaction to see details: who sent it, when it arrived, what it was for, and whether any fees were charged. Keep this history for your records, especially if you receive money regularly. If you ever need to prove you received a payment—for taxes, a dispute, or a loan application—you can download your transaction history. Go to "Activity," click the date range you need, and select "Download."
Protect your account from fraud and unauthorized access
Because your PayPal account is connected to your bank account, keeping it secure matters. Use a strong password—at least 12 characters, mixing letters, numbers, and symbols—and do not reuse it on other websites. Enable two-factor authentication by going to "Settings," then "Security," then "Two-step verification." PayPal will send you a code via text or email every time someone tries to log in from a new device, so only you can access your account.
Never click links in emails claiming to be from PayPal. Scammers send fake emails that look real, asking you to "confirm your account" or "update your information." If you get a suspicious email, log into PayPal directly (do not click the email link) and check your messages in the Resolution Center. Real PayPal messages appear there, not in your email inbox. If someone sends you money and then asks you to send it back or transfer it elsewhere, that is often a scam—the original payment may reverse days later, leaving you out the money.
Withdraw money to your bank account or use it to pay others
Your PayPal balance is yours to use however you want. The most common choice is to transfer it to your bank account, which takes one to three business days and costs nothing. You can also use your PayPal balance to send money to other people, pay bills through PayPal's bill pay service, or spend it online at stores that accept PayPal.
If you receive money regularly—from a side job, selling items, or freelance work—you might want to leave some in your PayPal balance for convenience. But if you only receive money occasionally, transfer it to your bank account so it is in a place you use every day. There is no penalty for leaving money in PayPal, but there is also no interest, so it makes sense to move it if you are not using it.
Frequently Asked Questions
How long does it take for money to show up in my PayPal account after someone sends it?
Money usually arrives in your PayPal balance within minutes if both accounts are verified. Occasionally it takes a few hours. Once it is in your PayPal account, transferring it to your bank account takes one to three business days, depending on your bank.
What happens if someone sends me money and then disputes it?
If it was a Friends and Family transfer, PayPal will likely reverse it with little investigation, and you will lose the money. If it was a Goods and Services payment, PayPal will investigate the dispute. Keep records of what you sold or the service you provided—messages, photos, receipts—to defend yourself.
Can I receive money if I do not have a bank account?
You can receive money into your PayPal balance and spend it using a PayPal debit card or at online stores that accept PayPal. However, you cannot transfer money out to a bank account without one. Some people use prepaid debit cards linked to PayPal as a workaround, though fees may apply.
Is there a limit to how much money I can receive through PayPal?
Personal accounts can receive money without a limit, but PayPal may ask you to verify your identity if you receive large amounts or many transactions in a short time. Business accounts have higher transaction limits. If PayPal suspects unusual activity, they may temporarily hold funds while they investigate.
What if I want to receive money but do not want to share my email address?
Create a payment link instead. You can set a specific amount and share just the link without revealing your email. The person clicking the link can pay you without knowing your PayPal email address.