Yes, you can open a PayPal account without a checking account

You do not need a checking account to create a PayPal account. PayPal will let you sign up with just an email address and a way to verify who you are. However, what you can do with that account depends on whether you add a payment method — and a checking account is only one option among several.

The confusion usually comes from mixing up two different things: opening an account (which is free and requires almost nothing) and being able to send money or make purchases (which requires PayPal to know how to take money from you). A checking account makes that second part straightforward, but it is not the only way.

Key Takeaways

  • You can create a PayPal account with just an email address, but you will not be able to send money or buy things until you add a payment method.
  • A debit card, prepaid card, or savings account works just as well as a checking account for funding PayPal transactions.
  • If you have neither a bank account nor a card, you can still receive money through PayPal, but sending money will be limited until you add a payment method.
  • PayPal's verification process may ask for a photo ID or a small deposit to confirm your identity, depending on what you are trying to do.

What you can do with PayPal before adding any payment method

When you first open a PayPal account, you can receive money from other people. Someone can send you funds, and that money will sit in your PayPal balance until you decide what to do with it. You can also use PayPal to receive payments if you are selling something online or offering a service.

What you cannot do right away is send money out or make purchases. PayPal needs to know where the money is coming from before it will let you spend. That is where a payment method comes in.

Payment methods that work instead of a checking account

A debit card is the most common alternative. If you have a debit card from any bank or credit union, you can link it to PayPal the same way you would link a checking account. PayPal will ask for the card number, expiration date, and the three-digit security code on the back.

A prepaid card also works. These are cards you load with money yourself — you buy them at a store or online, add funds to them, and then use them like a debit card. Visa prepaid cards, Mastercard prepaid cards, and American Express prepaid cards all work with PayPal. The process is identical to linking a debit card.

A savings account works too, even if you do not have a checking account. If your bank or credit union offers a savings account, you can link it to PayPal by providing your routing number and account number. PayPal will make two small deposits to verify the account is yours, and you will confirm those amounts in PayPal to complete the link.

Some people also link a credit card to PayPal, though this is less common for funding transactions and more common for backup payment methods. Credit cards usually come with fees when used this way.

How PayPal verifies your identity without a bank account

When you open a PayPal account, you provide your name, email, and date of birth. For basic account use — receiving money or making small purchases — that is often enough.

If you want to send larger amounts of money or if PayPal has questions about who you are, it may ask for additional proof. This usually means uploading a photo of a government-issued ID like a driver's license or passport. You take a photo with your phone or camera and upload it through the PayPal app or website.

In some cases, PayPal will make two small deposits to a payment method you have linked (a debit card or prepaid card, for example) and ask you to tell PayPal what those amounts were. This confirms that you control that card or account. The deposits are usually less than a dollar each and happen within a few business days.

What happens if you receive money but have no payment method

If someone sends you money through PayPal and you have not linked any payment method, the money stays in your PayPal balance. You can see it in your account, but you cannot move it to a bank account or card, and you cannot spend it outside of PayPal.

You can use that balance to pay someone else through PayPal, or to make a purchase from a seller who accepts PayPal. But if you want to move the money to your own bank account or card — what PayPal calls a "withdrawal" — you will need to link a payment method first.

Getting a prepaid card if you do not have a checking account

If you do not have a checking account and do not have a debit card, a prepaid card is usually the fastest way to get a payment method for PayPal. You can buy prepaid cards at most grocery stores, pharmacies, and convenience stores. They cost between $5 and $10 for the card itself, though some have no set up fee.

Once you buy the card, you load money onto it — either at the store where you bought it, online through the card's website, or through a mobile app. Then you link it to PayPal using the card number and expiration date, just like a debit card.

Keep in mind that prepaid cards sometimes charge monthly fees or fees for certain transactions. Read the terms before you buy one. Some cards are designed for PayPal and other online use and have lower fees than others.

Limits on what you can do without verification

PayPal places limits on new accounts to prevent fraud. If you have just opened an account and have not yet verified your identity, you may not be able to send large amounts of money or receive large amounts. These limits usually lift after you have used the account for a while and PayPal has confirmed who you are.

The exact limits change, but a new account might be able to send or receive a few hundred dollars per month until verification is complete. Once you upload an ID or complete the deposit verification process, those limits usually increase significantly.

Frequently Asked Questions

Can I use PayPal if I only have a prepaid card?

Yes. Link your prepaid card to PayPal the same way you would a debit card. You will need the card number, expiration date, and security code. Make sure the prepaid card is activated and has money on it before you try to use it for a PayPal transaction.

What if I want to withdraw money from PayPal but have no bank account?

You will need to link a debit card or prepaid card to withdraw money. PayPal transfers the funds to that card, not directly to a bank account. The transfer usually takes one to three business days, depending on the card issuer.

Does PayPal charge a fee to open an account without a checking account?

No. Opening a PayPal account is free. You only pay fees when you send money internationally, receive money as a business, or use certain payment methods. Receiving money from friends or family in the United States has no fee.

Can I use someone else's checking account or debit card for my PayPal account?

No. PayPal requires that the payment method be in your name and that you have permission to use it. Using someone else's account or card without their knowledge is fraud and can result in your PayPal account being closed.

How long does it take to verify my identity with PayPal?

Uploading a photo ID usually takes a few minutes to a few hours for PayPal to review. The deposit verification method (where PayPal makes two small deposits) takes three to five business days for the deposits to appear, plus a few minutes for you to confirm the amounts.