What you need to open a PayPal account

You need three things to open a PayPal account: an email address you check regularly, a password you will remember, and either a debit card, credit card, or bank account number. PayPal does not charge you to create an account. The whole process takes about five minutes on a computer or phone.

Your email address becomes your PayPal login. If you change email providers later, you can update it, but for now use one that is stable. PayPal will send you confirmation messages and security alerts to this address, so make sure it is one you actually use.

The card or bank account serves two purposes: it lets you move money into PayPal, and it proves to PayPal that you are a real person. You do not have to fund your account when ready, but PayPal will ask for this information before you can send or receive money.

Key Takeaways

  • You need an email address, a password, and either a debit card, credit card, or bank account to open a PayPal account.
  • PayPal will verify your card or bank account by sending small test deposits or charges that you must confirm.
  • Personal accounts let you send and receive money from friends and family; Business accounts add invoicing and payment buttons for selling.
  • Once your account is verified, you can link additional cards or bank accounts without going through the verification process again.
  • PayPal holds new accounts to higher scrutiny for the first 180 days, so keep your information current and respond to any requests quickly.

The step-by-step account creation process

Go to paypal.com and click the "Sign Up" button at the top right. PayPal will ask you to choose between a Personal account or a Business account. A Personal account is for sending money to friends, splitting bills, and receiving payments from individuals. A Business account is for people who sell goods or services and want to invoice customers or accept payments on a website. Most people start with Personal.

Enter your email address and create a password. PayPal requires at least eight characters, and it is stronger if you mix uppercase, lowercase, numbers, and symbols. You will also enter your country and agree to PayPal's user agreement and privacy policy. Read these if you want to know what PayPal can do with your data, but the short version is that PayPal uses your information to prevent fraud and comply with banking laws.

Next, PayPal asks for your full name, date of birth, and address. Use the name that appears on your card or bank account — if it does not match, verification will fail later. Your address should be current; PayPal uses it to confirm your identity and to comply with anti-money-laundering rules.

Finally, add your debit card, credit card, or bank account. If you add a card, PayPal will charge it a small amount (usually less than a dollar) and ask you to confirm the charge. If you add a bank account, PayPal will deposit two small amounts and ask you to tell PayPal what those amounts were. This process takes one to three business days. Do not close the browser or navigate away until you see a confirmation message.

How PayPal verifies your identity

PayPal's verification step is not optional — you cannot send or receive money until it is complete. The verification proves to PayPal that you own the card or bank account you linked, and that the name and address you provided are real.

For debit and credit cards, PayPal charges a small amount (usually between 50 cents and $2) and sends you an email asking you to confirm the charge amount. Log back into PayPal, go to your wallet or card settings, and enter the amount you saw on your card statement. PayPal confirms it matches and marks your card as verified. This usually happens within minutes.

For bank accounts, the process is slower. PayPal deposits two small amounts (usually between 1 and 5 cents each) into your checking account. These appear on your bank statement within one to three business days. Once you see them, log into PayPal and enter both amounts. PayPal confirms them and marks your bank account as verified. After this, PayPal will withdraw both amounts back out.

If you enter the wrong amount three times, PayPal locks you out of that verification attempt. You can try again, but you will have to wait a few days. If verification fails repeatedly, contact PayPal's support team — sometimes a human can verify you manually if your information is clearly legitimate.

Personal accounts versus Business accounts

A Personal account is free and designed for peer-to-peer transfers. You can send money to friends and family, split a dinner bill, or receive money from someone who owes you. PayPal does not charge you to receive money from another person in the United States. If someone sends you money from outside the US, PayPal deducts a small fee (usually 1% to 2%).

A Business account is also free to create, but PayPal charges you when you receive payments for goods or services. The fee is 2.2% plus 30 cents per transaction in the US. A Business account lets you create invoices, add a payment button to a website, and accept payments in person with a card reader. If you are selling anything — even occasionally — you should use a Business account. Using a Personal account to receive payment for goods or services violates PayPal's terms and can result in your account being frozen.

You can start with a Personal account and upgrade to a Business account later without losing your transaction history. The upgrade takes a few minutes and does not require re-verification.

What happens in your first 180 days

PayPal treats new accounts with extra caution for the first six months. During this time, PayPal may place a hold on money you receive, limiting how much you can withdraw or send. The holds are usually released after 21 days, but PayPal can extend them if your account looks unusual.

To avoid holds and account restrictions, keep your information current, respond quickly to any emails from PayPal, and do not make sudden large transactions that look out of character. If PayPal asks you to verify your identity again or provide additional documents, do it within the timeframe they give you. Ignoring these requests is the fastest way to have your account frozen.

If you receive a large payment during your first 180 days, PayPal may ask you to prove where the money came from. This is normal and not a sign that anything is wrong. Provide the documentation PayPal asks for — an invoice, a receipt, a contract, or a screenshot of a conversation — and the hold will be released.

Linking additional cards and bank accounts

Once your first card or bank account is verified, adding more is faster. Go to your wallet settings, click "Link a card" or "Link a bank account," and enter the new information. PayPal will verify it using the same process as before, but you only have to do this once per card or account.

You can link as many cards and bank accounts as you want. PayPal will ask you to choose a primary payment method — this is the card or account PayPal uses by default when you send money or make a purchase. You can change your primary method at any time.

If you remove a card or bank account, PayPal will stop using it when ready. Any pending transactions linked to that card or account will fail, so make sure you have another payment method set up first.

Security and protecting your account

Your PayPal password should be unique — do not use the same password on PayPal that you use anywhere else. If another website is hacked and your password is stolen, a criminal could use it to access your PayPal account and your linked cards or bank account.

Turn on two-factor authentication in your security settings. This means PayPal will send you a code via text message or email whenever someone tries to log in from a new device. Even if a criminal has your password, they cannot access your account without this code.

Do not share your password, and do not log into PayPal on a public computer. If you use a shared device, always log out when you are done. PayPal will never ask you for your password in an email — if you receive an email claiming to be from PayPal and asking for your password, it is a scam.

Frequently Asked Questions

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

You can create an account without one, but you will not be able to send or receive money until you add a card or bank account and verify it. PayPal requires this verification step for all accounts, even if you only plan to receive money.

How long does verification actually take?

Card verification usually takes minutes to a few hours. Bank account verification takes one to three business days for the deposits to appear, then a few minutes for you to confirm them. If PayPal needs additional information about your identity, it may take a few days longer.

What if my card or bank account is in someone else's name?

PayPal requires the name on your account to match the name on your card or bank account. If they do not match, verification will fail. You must use a card or account in your own name.

Can I have more than one PayPal account?

PayPal's terms say you can only have one account per person. If PayPal discovers you have multiple accounts, it can freeze all of them. If you need a separate account for business, upgrade your personal account to a Business account instead.

What should I do if PayPal locks my account during verification?

Contact PayPal's support team through the Help Center on paypal.com. Explain what happened and provide any documents PayPal asks for — a photo ID, a utility bill, or a bank statement. A human representative can often unlock your account or complete verification manually if your information is legitimate.