What you need to create a PayPal account

You can create a PayPal account in about 10 minutes with an email address, a phone number, and either a debit card or bank account. PayPal does not require a minimum balance to open the account, and you do not pay a fee to create one. The account itself is free; you only pay fees when you send money to certain people or receive payments in specific ways.

PayPal offers two account types: Personal and Business. A Personal account is what most people use for sending money to friends, paying online sellers, and receiving payments from one or two sources. A Business account is designed for people who sell goods or services regularly and need invoicing tools and higher transaction limits. You can start with a Personal account and upgrade later if your needs change.

Before you start, have your email address ready. You will also need either a U.S. debit card, a U.S. credit card, or a U.S. bank account (checking or savings). If you do not have any of these yet, you will need to set one up first—PayPal cannot link to accounts outside the United States.

Key Takeaways

  • You need an email address, phone number, and either a debit card or bank account to create a PayPal account in the United States.
  • The account creation process takes about 10 minutes and costs nothing; fees only explore when you send or receive money in certain ways.
  • PayPal will ask you to confirm your identity by verifying your email address and phone number before you can send or receive money.
  • After you link a payment method, you can start using your account when ready, though some features may have temporary limits until PayPal confirms your identity.
  • You can upgrade from a Personal account to a Business account at any time if you start selling regularly.

Step-by-step account creation

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

Enter your email address, create a password (PayPal requires at least 8 characters, including uppercase and lowercase letters, numbers, and a special character), and enter your first and last name. PayPal will send a confirmation email to the address you provide—check your inbox and spam folder and click the link in that email to verify your address.

Next, PayPal will ask for your phone number and will send you a verification code via text message or call. Enter that code on the screen. Then provide your date of birth, address, and the last four digits of your Social Security number. PayPal uses this information to verify your identity and comply with federal banking rules.

Finally, link a payment method. You can add a debit card, credit card, or bank account. If you add a bank account, PayPal will make two small deposits (usually under $1 each) to that account within one to two business days. You will then need to log back in and confirm the amounts of those deposits to prove you own the account. This step takes a few days but adds an extra layer of security.

Linking a debit card or credit card

If you choose to link a card instead of a bank account, the process is faster. Enter your card number, expiration date, and the three-digit security code on the back. PayPal will attempt to verify the card when ready. In most cases, the card is confirmed right away, and you can start using your account within minutes.

PayPal charges different fees depending on how you use the card. If you use it to send money to friends (called a "personal transfer"), there is no fee. If you use it to pay a business or seller, PayPal charges a fee that varies by transaction type—usually between 2.2% and 3.49% plus $0.30 for standard transfers. These fees are deducted from the money you send, so the recipient gets less than you intended unless you cover the fee yourself.

You can add multiple cards or bank accounts to one PayPal account. This is useful if you want to use different payment methods for different purposes, or if one card is declined and you need a backup.

Linking a bank account

Linking a bank account takes longer than linking a card but gives you more flexibility and lower fees. Enter your bank's routing number, your account number, and whether the account is checking or savings. You can find both numbers on a check or by logging into your bank's website.

PayPal will then make two small test deposits to your account—usually $0.01 and $0.02, or similar amounts. These deposits appear in your bank account within one to two business days. Once they arrive, log back into PayPal, go to your wallet or payment methods, and enter the exact amounts of those two deposits. This confirms you own the account.

After you confirm the deposits, your bank account is fully linked. Sending money from a linked bank account costs nothing for personal transfers. If you receive money from a business or seller, PayPal charges a fee only if the payment is marked as a "goods and services" transaction, which is less common for personal accounts.

What happens after you create your account

Once your account is created and verified, you can when ready send money to anyone with an email address or phone number, even if they do not have a PayPal account yet. They will receive a notification and can claim the money by creating an account or linking it to an existing one. The money is held for 30 days; if they do not claim it, it returns to you.

You can also request money from others. They will receive a request notification and can pay you directly through PayPal if they have an account, or PayPal will direct them to create one. Requesting money is free.

Your account will have a transaction limit when you first create it. PayPal sets this limit based on your account history and verification status. You might be able to send up to $500 or $1,000 in your first month, for example. As you use the account and build a history, PayPal raises this limit automatically. You can also request a higher limit by providing additional information like a government ID.

Some features, like receiving payments for goods and services, may not be available when ready. PayPal sometimes holds new accounts to a limited feature set for the first 30 to 90 days. This is a fraud prevention measure. Once that period passes, you can unlock additional features by confirming your identity further or by requesting them directly from PayPal.

Protecting your account after setup

Enable two-factor authentication as soon as your account is created. This means PayPal will ask for a code sent to your phone whenever you log in from a new device or location. Go to Settings, then Security, and turn on "Two-Step Verification." This prevents someone from accessing your account even if they learn your password.

Use a strong, unique password—one you do not use for any other website. If another website is hacked and your password is exposed, a criminal could try that same password on your PayPal account. A password manager like Bitwarden or 1Password can generate and store strong passwords for you.

Review your account activity regularly. Log in at least once a month and check your transaction history. If you see a payment you did not make, report it to PayPal when ready. PayPal offers buyer and seller protection for certain transactions, but you must report unauthorized activity within 60 days.

Frequently Asked Questions

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

No. PayPal requires at least one payment method linked to your account before you can send or receive money. You need either a debit card, credit card, or bank account. If you do not have any of these, you will need to open one at a bank or credit union first.

How long does it take to verify my bank account?

The two test deposits usually arrive within one to two business days. Once they arrive, you enter the amounts into PayPal, and your account is verified when ready. The entire process typically takes three to five business days from the time you link your account.

What if I forget my PayPal password?

Go to paypal.com and click "Log In," then click "Forgot Password?" Enter your email address, and PayPal will send you a link to reset it. Click the link in your email and create a new password. If you do not receive the email, check your spam folder or contact PayPal support through the Help Center on their website.

Can I use PayPal if I live outside the United States?

PayPal operates in many countries, but the process and available features vary by location. If you are outside the U.S., go to paypal.com and select your country from the dropdown menu at the bottom of the page. You will see the version of PayPal available in your region and what payment methods you can link.

Do I have to use my real name on my PayPal account?

Yes. PayPal requires the name on your account to match the name on your government ID and the name on your linked bank account or card. This is a federal requirement to prevent fraud and money laundering. You cannot create an account under a nickname or business name unless it is your legal name.