What you need to create a PayPal account

You can set up a PayPal account in about 10 minutes using a computer or phone. You will need a valid email address, a password you create, and either a debit card, credit card, or bank account number to link to your account. PayPal does not charge a fee to open an account—you only pay fees when you send money to certain people or receive payments for goods and services.

PayPal offers two account types: Personal and Business. A Personal account is what most people use for sending money to friends and family or buying things online. A Business account is designed for people who sell items or run a small business and need to track income separately. You can start with a Personal account and upgrade later if you need to.

Key Takeaways

  • You need an email address, a password, and a debit card, credit card, or bank account to open a PayPal account.
  • The account setup takes about 10 minutes, but PayPal may ask you to verify your identity before you can send large amounts of money.
  • Linking a bank account instead of a card gives you more sending options and usually means lower fees.
  • PayPal will send a confirmation email to the address you provide—check your spam folder if you do not see it within a few minutes.

Step 1: Go to PayPal and choose your account type

Visit paypal.com on your computer or open the PayPal app on your phone. Click the "Sign Up" button. You will see two options: Personal and Business. For most people, Personal is the right choice. Click on the one you want.

PayPal will ask you to enter your country and email address. Use an email you check regularly—PayPal sends important messages there, and you will need access to it to confirm your account later.

Step 2: Enter your personal information

PayPal will ask for your first name, last name, date of birth, and address. Use the name that matches your bank account or debit card, because PayPal will check this information later when you link your payment method. If the names do not match, you may not be able to use that card or account.

Enter your full street address, city, state, and ZIP code. PayPal uses this to verify your identity and to comply with financial regulations. You can update your address later if you move.

Step 3: Create a password and answer a security question

Choose a password that is at least 8 characters long and includes uppercase letters, lowercase letters, and numbers. Do not use your name, email address, or a password you use for other accounts. Write it down somewhere safe, or use a password manager to store it.

PayPal will ask you to answer a security question—for example, "What is your mother's maiden name?" or "What was the name of your first pet?" Choose a question you can remember the answer to, because PayPal may ask you this question if you ever forget your password or need to prove your identity.

Step 4: Link a debit card, credit card, or bank account

PayPal will ask you to add a payment method. You have three options: a debit card, a credit card, or a bank account. If you link a bank account, you will be able to send money to other people for free and receive money without fees. If you link only a card, you can still send and receive money, but some transactions may have fees.

To link a card, enter the card number, expiration date, and the three-digit security code on the back. To link 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 verify the information you enter by making two small deposits to your bank account (usually $0.01 and $0.02). This takes one to two business days. Once you see the deposits, you will log back into PayPal and confirm the amounts to finish linking your account.

Step 5: Confirm your email address

PayPal will send a confirmation email to the address you provided. Open that email and click the link inside it. This confirms that you own the email address and that your account is real. If you do not see the email within a few minutes, check your spam or junk folder—sometimes PayPal's emails end up there by mistake.

Once you click the confirmation link, your account is active. You can now send money to other PayPal users, pay for things online, or receive money from other people. If you linked a card, you can start using it right away. If you linked a bank account and are still waiting for the verification deposits, you can use your account but may have limits on how much you can send until the bank account is fully verified.

What happens after you set up your account

PayPal may ask you to verify your identity before you can send large amounts of money or withdraw funds. This usually means uploading a photo of your driver's license or passport. This is a security step to prevent fraud and to meet legal requirements. It normally takes a few hours to a few days.

Your account will have a sending limit—the amount of money you can send in a month. This limit is usually $20,000 for a Personal account, but it may be lower when you first open your account. As you use PayPal and build a history, your limit may increase. You can check your current limit by logging into your account and going to your wallet or account settings.

Frequently Asked Questions

Do I have to link a card or bank account right away?

No. You can open a PayPal account and add a payment method later. However, you will not be able to send money or make purchases until you link something. If you want to receive money from other people, you do not need a card or bank account linked—PayPal will hold the money in your account until you add one.

What if my card or bank account is declined when I try to link it?

This usually means the name on your PayPal account does not match the name on your card or bank account exactly. Log into your PayPal account, go to your personal information, and make sure your first and last names are spelled the same way they appear on your payment method. Then try linking again. If it still does not work, contact your bank or card issuer to make sure they have not blocked PayPal.

Can I have more than one PayPal account?

PayPal's rules say you should have only one Personal account per person. If you need a Business account in addition to a Personal account, you can have both, but they must use different email addresses. Having multiple Personal accounts can get your accounts closed.

Is it safe to link my bank account to PayPal?

PayPal uses encryption and fraud detection to protect your information. Your bank account number is not shared with the people you send money to—they only see your PayPal email address. However, like any online account, your PayPal account is only as safe as your password. Use a strong password and do not share it with anyone.