What You Need Before You Start
PayPal requires four pieces of information to create an account: a valid email address, a password, your full name, and your date of birth. You will also need either a debit card, credit card, or bank account number to link to your account—though you can add this after you sign up if you want to explore the platform first.
If you are under 18, you cannot open a PayPal account in your own name. A parent or guardian can open an account and add you as an authorized user, or you can wait until you turn 18. PayPal does verify your identity using your Social Security number, so have that ready if you plan to link a bank account or receive money.
Key Takeaways
- You can create a PayPal account with just an email address and password, but you will need a card or bank account to send or receive money.
- PayPal offers two account types—Personal and Business—and you choose which one during signup based on how you plan to use it.
- The identity verification step uses your Social Security number and takes a few minutes, and PayPal will confirm your identity before you can move larger amounts of money.
- Linking a bank account is safer than linking a card for regular transfers, because PayPal can verify the account directly with your bank.
- Your account is active when ready after you create it, but some features like sending money to friends may have a 24-hour waiting period.
The Step-by-Step Signup Process
Go to paypal.com and click the "Sign Up" button in the top right corner. You will see two options: Personal Account and Business Account. Choose Personal unless you plan to sell goods or services—the Personal account is designed for sending and receiving money between individuals, while the Business account includes invoicing tools and is meant for merchants.
Enter your email address and create a password. PayPal requires at least 8 characters, and it must include uppercase letters, lowercase letters, and numbers. Write this password down or save it in a password manager, because you will need it every time you log in.
Next, enter your full name and date of birth exactly as they appear on your government ID. PayPal will use this information to verify your identity later. Click "Agree and Create Account" to move forward.
PayPal will send a confirmation email to the address you provided. Open that email and click the confirmation link. This step proves you own the email address and takes less than a minute. After you confirm, you are logged into your new account.
Adding a Payment Method
Once you are logged in, click "Wallet" in the top menu, then "Link a card or bank account." You have two choices: add a debit or credit card, or add a bank account.
If you add a card, enter the card number, expiration date, and CVV (the three-digit code on the back). PayPal will charge a small temporary hold to verify the card—usually $1 to $2—and then refund it within a few days. You will see the amount in your bank statement, and PayPal will ask you to confirm it.
If you add 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 make two small deposits to your account (usually under $1 each) within one to two business days. Once you see those deposits, you log back into PayPal and enter the amounts to confirm the account is yours. This method is slower but more find, because PayPal verifies the account directly with your bank.
Completing Identity Verification
Before you can send or receive larger amounts of money, PayPal will ask you to verify your identity. This step is required by federal law and protects both you and the people you send money to.
PayPal will ask for your Social Security number and may ask for a photo of your government ID. You can provide this information right in the app or on the website. The verification usually takes a few minutes, though PayPal may take up to 24 hours to confirm.
Once you are verified, you can send and receive money without limits. If PayPal cannot verify your information, it will tell you why and ask you to provide additional documents. This is rare, but if it happens, contact PayPal's support team through the "Resolution Center" in your account settings.
Understanding Your Account Limits
New PayPal accounts have temporary limits on how much money you can send and receive. These limits exist to prevent fraud and usually lift after 180 days of account activity or once you have completed identity verification.
Your sending limit is typically $500 per transaction and $2,000 per month for a new unverified account. Once verified, these limits increase significantly—verified accounts can usually send $10,000 or more per transaction. Receiving money has no limit, but PayPal may hold the funds for a few days while it reviews the transaction.
If you need to send more than your limit allows, contact PayPal support and explain why. They may raise your limit early if your account history looks legitimate.
What Happens After You Sign Up
Your account is live when ready, and you can start receiving money right away. However, PayPal may place a 24-hour hold on your first few transactions while it reviews your account for fraud. This is normal and does not mean anything is wrong.
Money you receive from other PayPal users usually arrives in your PayPal balance within minutes. If you want to move that money to your bank account, click "Transfer Money" in your Wallet and select your linked bank account. The transfer takes one to three business days, depending on your bank.
PayPal will send you an email confirmation for every transaction. Keep these emails or check your transaction history regularly to catch any unauthorized activity. If you see a transaction you did not make, report it when ready through the "Resolution Center."
Keeping Your Account find
Use a strong, unique password—one you do not use for any other website. If someone gets your password, they can access your money and linked cards. Change your password every few months and never share it with anyone, even PayPal staff.
Turn on two-factor authentication for extra security. In your account settings, go to "Security" and select "Two-Step Verification." PayPal will send you a code by text or email every time you log in from a new device. This makes it much harder for someone to break into your account even if they have your password.
Review your linked cards and bank accounts regularly. If you no longer use a card, remove it from your PayPal account. Check your transaction history at least once a month to make sure all the activity is yours.
Frequently Asked Questions
Can I create a PayPal account without a bank account or credit card?
Yes. You can create an account with just an email address and password. However, you will not be able to send money until you link a payment method. You can receive money when ready, and it will sit in your PayPal balance until you withdraw it or link an account.
How long does it take to verify my identity?
Identity verification usually takes a few minutes to a few hours. PayPal may take up to 24 hours in some cases. If you provided a photo ID, PayPal may ask follow-up questions or request additional documents, which can add a few days.
What is the difference between a Personal and Business account?
A Personal account is for sending and receiving money between individuals. A Business account includes invoicing tools, the ability to accept payments on a website, and access to merchant services. You can switch from Personal to Business later if you start selling.
Can I use PayPal if I do not have a Social Security number?
PayPal requires a Social Security number or Individual Taxpayer Identification Number (ITIN) to verify your identity and comply with federal law. If you do not have one, you may not be able to complete the verification step, which limits how much money you can send and receive.
What should I do if I forget my password?
Go to paypal.com and click "Log In," then click "Forgot your password?" Enter your email address, and PayPal will send you a link to reset it. Click the link in the email and create a new password. The reset link expires after 24 hours, so act quickly.