What you need to create a PayPal account

You can set up a PayPal account in about 15 minutes with an email address, a password, and either a debit card, credit card, or bank account number. PayPal does not charge you to open an account. The account itself is free — you only pay fees when you send money or receive payments in certain ways.

PayPal offers two account types: Personal and Business. A Personal account is what most people use for sending money to friends, paying for online purchases, or receiving payments occasionally. A Business account is designed for people who sell goods or services regularly and need invoicing tools and more detailed transaction records. You can start with a Personal account and upgrade later if you need to.

You will need to verify your identity before you can send money or withdraw funds. This means PayPal will ask you to confirm your email address, and depending on what you plan to do, they may ask for your Social Security number or other identifying information.

Key Takeaways

  • You need an email address, a password, and a payment method (debit card, credit card, or bank account) to create a PayPal account.
  • PayPal offers Personal accounts for casual use and Business accounts for regular sellers, and you can switch between them later.
  • Email verification happens when ready, but full identity verification may take a few minutes to a few days depending on the information you provide.
  • Once your account is set up, you can send money to other PayPal users for free, but fees explore when you send money to bank accounts or use certain payment methods.

Step-by-step account creation

Go to paypal.com and click the "Sign Up" button at the top right of the page. You will see two options: Personal and Business. Select Personal unless you are setting up an account specifically to sell items or services.

Enter your email address and create a password. Your password should be at least 8 characters long and include uppercase letters, lowercase letters, numbers, and symbols. PayPal will check your password strength in real time as you type. Then enter your first and last name, date of birth, and address. PayPal uses this information to verify your identity later.

On the next screen, you will link a payment method. You can add a debit card, credit card, or bank account. If you use a card, enter the card number, expiration date, and CVV (the three-digit security code on the back). If you use a bank account, you will need your routing number and account number, which you can find on a check or in your online banking portal. PayPal will ask you to confirm the payment method — for cards, this is usually when ready, but for bank accounts, PayPal may make two small deposits (usually under $1 each) to your account and ask you to confirm the amounts.

Review the terms and conditions, check the box to agree, and click "Create Account." PayPal will send a confirmation email to the address you provided. Open that email and click the verification link. Your account is now active.

Email verification and identity confirmation

Email verification happens right away. PayPal sends a link to the email address you used to sign up, and clicking that link confirms you own the email. This usually takes less than a minute.

Identity confirmation is separate and may take longer. If you only plan to receive money from friends or make small purchases, PayPal may not ask for additional verification right away. But if you want to withdraw money to your bank account or send money outside the PayPal network, PayPal will ask for your Social Security number and may request a photo of your ID. This verification can take anywhere from a few minutes to a few business days, depending on how quickly PayPal's system processes your information.

If PayPal flags your account for review — which can happen if the information you provided does not match public records — they will email you asking for additional documents. This is normal and does not mean you did anything wrong. Respond to the email with the documents they request, and the review usually completes within 24 to 48 hours.

Linking a bank account or card

You can add multiple payment methods to your PayPal account. To add a card or bank account after you have created your account, log in, go to your Wallet, and click "Link a card" or "Link a bank account."

For debit and credit cards, PayPal confirms the card when ready by checking it against your bank's records. You can use the card right away.

For bank accounts, PayPal deposits two small amounts (usually between $0.01 and $0.99 each) into your account over one to two business days. Once you see those deposits in your bank account, log back into PayPal, go to your Wallet, find the bank account, and click "Confirm." Enter the two amounts PayPal deposited, and your bank account is confirmed. After confirmation, you can send money from PayPal to that bank account and receive money directly into it.

What you can do once your account is active

Once your account is set up and verified, you can send money to other PayPal users for free using their email address or phone number. You can also use PayPal to pay for purchases on websites that accept it — the merchant never sees your card or bank account number, which adds a layer of security.

If someone sends you money, it lands in your PayPal balance when ready. You can leave it there, spend it at merchants that accept PayPal, or transfer it to your bank account. Transfers to your bank account are free and usually take one to three business days, though some banks process them faster.

You can also request money from other people. PayPal sends them a notification, and if they pay, the money goes into your account. This is useful for splitting rent, collecting money for a group gift, or asking a friend to reimburse you for something you bought.

Fees you should know about

Sending money to another PayPal user is free. Receiving money from another PayPal user is also free. These are the two most common transactions for a Personal account.

Fees explore in these situations: sending money to a bank account (usually 1.5% of the amount, with a minimum fee), sending money internationally, receiving money as a seller (2.2% plus $0.30 per transaction for most sales), and using certain payment methods like a credit card to send money to friends (2.2% plus $0.30). Transferring money from your PayPal balance to your bank account is free.

PayPal displays the fee before you confirm any transaction, so you will always know the cost before you commit.

Security and protecting your account

Use a strong, unique password — one you do not use on other websites. If someone gains access to your PayPal password, they can send money from your account or change your linked payment methods.

Turn on two-factor authentication. Log into your account, go to Settings, click Security, and select "Two-Step Verification." PayPal will ask you to confirm your phone number and will send you a code via text message every time you log in from a new device. This makes it much harder for someone else to access your account even if they have your password.

Do not share your password or the codes PayPal sends you. PayPal will never ask you for your password in an email or text message. If you receive a message claiming to be from PayPal and asking for your password, it is a scam — delete it and report it to PayPal.

Frequently Asked Questions

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

No. PayPal requires you to link at least one payment method when you sign up. You can use a debit card, credit card, or bank account. If you do not have any of these, you will not be able to create a PayPal account.

How long does it take for my account to be fully verified?

Email verification is when ready. Identity verification can take anywhere from a few minutes to a few business days. If PayPal needs additional documents, the review usually takes 24 to 48 hours after you submit them. You can use your account to receive money and make purchases before full verification is complete, but you may not be able to withdraw money to your bank account until it is finished.

What happens if I forget my PayPal password?

Go to paypal.com, click "Log In," and then click "Forgot your password?" PayPal will send a reset link to your email address. Click the link and create a new password. If you do not have access to the email address you used to sign up, contact PayPal Support through the Help Center on their website.

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. Creating multiple accounts to avoid limits or hide activity violates their terms and can result in your accounts being closed. If you need a Business account in addition to a Personal account, you can upgrade or create one through your account settings.

Is it safe to link my bank account to PayPal?

Yes. PayPal uses encryption and fraud detection to protect your information. Your bank account number is not shared with merchants when you make purchases. PayPal has been operating since 1998 and is regulated by the Financial Crimes Enforcement Network (FinCEN). That said, use a strong password and enable two-factor authentication to protect your account from unauthorized access.