What you need to create a PayPal account

A PayPal account takes about 10 minutes to set up on 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 it. PayPal will verify that the card or account belongs to you — usually by checking a small deposit or asking security questions — before you can send or receive money.

You do not need a bank account to start a PayPal account, but you will need one eventually if you want to move money out of PayPal and into your own hands. If you do not have a bank account yet, you can still create the PayPal account and link it later.

Key Takeaways

  • You can create a PayPal account with just an email address and a debit or credit card, and the whole process takes about 10 minutes.
  • PayPal will verify your card or bank account by checking a small deposit or asking security questions before you can move money.
  • A standard PayPal account lets you send and receive money, but a Business account gives you tools for invoicing and tracking if you sell things.
  • Once your account is verified, you can receive money from other PayPal users, employers, or services that pay through PayPal.

Step-by-step: Creating your account

Go to paypal.com on a computer or open the PayPal app on your phone. Click the "Sign Up" button. You will see two choices: Personal account or Business account. Most people choose Personal unless they plan to sell items or invoice customers. Choose Personal for now.

Enter your email address and create a password. Your password should be at least 8 characters and include a mix of uppercase letters, lowercase letters, numbers, and symbols — PayPal will tell you if it is strong enough. Then enter your first and last name, date of birth, and address. PayPal uses this information to verify who you are.

Next, you will link a payment method. You can add a debit card, credit card, or bank account. If you choose a card, enter the card number, expiration date, and the three-digit security code on the back. If you choose a bank account, you will need your routing number and account number — you can find both on a check or by logging into your bank's website.

Review the information you entered, check the box to agree to PayPal's User Agreement and Privacy Policy, and click "Agree and Create Account." PayPal will send a confirmation email to the address you provided. Open that email and click the link inside to confirm your email is real.

How PayPal verifies your identity

After you confirm your email, PayPal will verify the card or bank account you linked. If you added a debit or credit card, PayPal may make a small temporary charge (usually less than $1) to confirm the card is active and belongs to you. You will see this charge on your card statement within a few days. PayPal will then ask you to enter the amount of that charge in your PayPal account to prove you have access to the card.

If you linked a bank account instead, PayPal will make two small deposits into that account — usually within 1 to 2 business days. You will need to log into your bank account, find those deposits, and enter the amounts into PayPal. Once you do, your bank account is verified.

Until your card or bank account is verified, you can receive money in your PayPal account but you cannot send it out or withdraw it to a bank account. Verification usually takes 3 to 5 business days, though it can be faster.

Personal account versus Business account

A Personal account is free and designed for sending money to friends and family or receiving payments from individuals. You can receive money from other PayPal users, and you can send money to anyone with an email address. There are no monthly fees, though PayPal does charge a small percentage when someone sends you money as a payment (not as a personal transfer between friends).

A Business account is also free to create and is designed for people who sell items, offer services, or invoice customers. It gives you tools to create invoices, track payments, and see reports about your sales. If you think you might sell things or invoice people in the future, you can start with a Personal account and upgrade to Business later — it takes just a few minutes.

Linking a bank account or card after setup

You can add more cards or bank accounts to your PayPal account at any time. Log into PayPal, click the gear icon (Settings), then click "Wallet" or "Payment Methods." Click "Link a Card" or "Link a Bank Account" and follow the same verification steps as before.

Having multiple payment methods linked gives you options. If one card is declined, PayPal can try another. You can also choose which card or account PayPal uses when you send money or pay for something.

What to do after your account is verified

Once your account is verified, you can start receiving money. Other PayPal users can send you money using your email address. Employers or services that pay through PayPal can deposit money directly into your account. Money you receive sits in your PayPal balance until you move it to your bank account or spend it.

To withdraw money to your bank account, log into PayPal, click "Wallet," then click "Transfer Money." Choose "Transfer to Your Bank" and enter the amount. The money usually arrives in your bank account within 1 to 3 business days, though PayPal offers a faster option (usually same-day) for a small fee.

You can also use your PayPal balance to pay for things online at stores that accept PayPal, or to send money to other PayPal users. If you send money to a friend as a personal transfer (not a payment for goods or services), there is no fee.

Keeping your account find

Use a strong, unique password that you do not use on other websites. If someone gets your password, they can access your money. Write it down somewhere safe, or use a password manager — a tool that stores passwords securely.

Turn on two-factor authentication to add an extra layer of security. This means PayPal will ask for a code from your phone or email every time you log in from a new device. To set this up, go to Settings, click "Security," then turn on "Two-Step Verification."

Check your account regularly for activity you do not recognize. If you see a charge or transfer you did not make, report it to PayPal right away. PayPal has a dispute process to help you recover money if someone uses your account without permission.

Frequently Asked Questions

Do I need a bank account to create a PayPal account?

No. You can create a PayPal account with just a debit or credit card. You will need a bank account later if you want to withdraw money from PayPal, but you can set that up after your account is already working.

How long does it take to verify my account?

Verification usually takes 3 to 5 business days. If you linked a card, PayPal makes a small charge and you confirm the amount. If you linked a bank account, PayPal makes two small deposits and you confirm those amounts. Once PayPal sees your confirmation, your account is verified.

Can I use PayPal without a credit card?

Yes. You can link a debit card or a bank account instead. Both work the same way — PayPal verifies them with a small charge or deposit, and then you can send and receive money.

What happens if I forget my PayPal password?

Go to paypal.com and click "Log In." Then click "Having trouble logging in?" and choose "I forgot my password." PayPal will send a reset link to your email. Click the link, create a new password, and you can log in again.

Is it safe to link my bank account to PayPal?

PayPal uses encryption and security measures to protect your information. You should use a strong password and turn on two-factor authentication. If you are uncomfortable linking your bank account, you can use a debit card instead, or link your bank account only when you are ready to withdraw money.