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 have not used elsewhere, and either a debit card, credit card, or bank account number. PayPal will verify one of these payment methods before you can send or receive money. The whole process takes about ten minutes if you have your card or bank details ready.

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

You do not need to be a US citizen or resident to open an account, but PayPal does operate in about 200 countries and regions, and the features available depend on where you are. If you are outside the United States, check PayPal's country list before you start, because some features—like when ready transfers to your bank account—are not available everywhere.

Key Takeaways

  • You can open a PayPal account in minutes with an email address and a debit card, credit card, or bank account number.
  • PayPal will ask you to verify your payment method before you can send money, which usually takes one to three business days.
  • Personal accounts are free to open and use for most transactions, though PayPal charges fees when you receive money from someone outside the United States or when you transfer money to your bank when ready.
  • You can link multiple cards or bank accounts to one PayPal account and choose which one to use for each transaction.
  • Two-factor authentication is available and recommended to protect your account from unauthorized access.

Step-by-step: creating your account

Go to paypal.com and click the "Sign Up" button in the upper right corner. You will see two options: Personal and Business. Choose Personal unless you regularly sell items or services. Click "get your free guide" under your choice.

Enter your email address and create a password. PayPal requires at least eight characters, and it is stronger if you mix uppercase and lowercase letters, numbers, and symbols. You will use this email and password every time you log in, so write them down somewhere safe if you tend to forget passwords.

Enter your full name, date of birth, and address as they appear on your government ID. PayPal uses this information to verify your identity and comply with anti-money-laundering rules. If your address has changed recently, use your current address, not the one on an old ID.

Add a payment method: either a debit card, credit card, or bank account. If you use a card, enter the 16-digit number, expiration date, and three-digit security code on the back. If you use a bank account, enter your routing number and account number. You can find both on a check or by logging into your bank's website.

Review PayPal's User Agreement and Privacy Policy, then click the box to confirm you agree. Click "Create Account" or "Agree and Create Account" depending on what appears on your screen. PayPal will send a confirmation email to the address you provided.

Verifying your payment method

After you create your account, PayPal will verify that your card or bank account is real and that you control it. This step protects both you and PayPal from fraud. The verification method depends on what you added.

If you added a debit or credit card, PayPal will charge a small amount—usually between $0.01 and $2.00—to the card and then refund it. This charge appears within one to three business days. Once it shows up on your statement, log back into PayPal, go to your wallet or payment methods, and enter the amount you were charged. PayPal will confirm the match and mark your card as verified.

If you added a bank account, PayPal will make two small deposits to your account—usually $0.01 and $0.02—within one to three business days. Log into your bank account, find these deposits, and note the amounts. Go back to PayPal, navigate to your bank account settings, and enter the two amounts. Once PayPal confirms the match, your bank account is verified.

Until your payment method is verified, you can browse and shop on PayPal, but you cannot send money or withdraw funds. Once verification is complete, you can use that payment method when ready.

Linking additional cards or bank accounts

You can add multiple payment methods to one PayPal account. This is useful if you want to use different cards for different purchases, or if one card is maxed out and you want to fall back to another.

Log into your PayPal account and click your name or profile icon in the upper right. Select "Account Settings" or "Wallet" depending on your screen layout. Look for "Add a Card" or "Add a Bank Account" and follow the same verification steps as before. Each new payment method will need to be verified before you can use it.

You can set one payment method as your default, which PayPal will use automatically unless you choose a different one at checkout. To change your default, go to your wallet or payment methods, find the card or account you want to use most often, and look for an option to "Set as Primary" or "Make Default".

Protecting your account with two-factor authentication

Two-factor authentication adds a second security step when you log in from a new device or browser. Instead of just entering your password, you will also need to enter a code that PayPal sends to your phone or email. This makes it much harder for someone to access your account even if they know your password.

To turn on two-factor authentication, log in to PayPal, go to Account Settings, and look for "Security" or "Login and Security". Click "Set Up Two-Step Verification" or similar wording. PayPal will ask whether you want codes sent to your phone via text message or to your email. Text message is faster, but email works if you do not have a phone plan that includes text messages.

After you set it up, the next time you log in from a new device, PayPal will ask for a code. Check your phone or email for the code PayPal sent, enter it on the login screen, and you will be in. You can tell PayPal to remember the device for 30 days so you do not have to enter a code every single time you log in from home.

Fees and limits on a new account

Opening a PayPal account is free. Sending money to friends in the United States using your bank account or debit card is also free, as long as you label the transaction as "Friends and Family" rather than a purchase. If you send money as a purchase or to someone outside the United States, PayPal charges a fee that varies by country.

Receiving money is free if the sender is in the United States and pays with their bank account or debit card. If the sender uses a credit card or is outside the United States, PayPal charges a fee that comes out of what you receive. The exact percentage depends on the country and the type of transaction.

New accounts have limits on how much you can send or receive in a single transaction or over a rolling 12-month period. These limits exist to prevent fraud. As you use PayPal and build a history, the limits increase. If you hit a limit, PayPal will tell you how long you need to wait before you can send or receive more, or what information you need to provide to raise the limit.

What to do if you forget your password or lose access

If you forget your password, go to paypal.com and click "Log In". Below the login fields, click "Forgot Your Password?" or "Can't Log In?". PayPal will ask you to enter your email address, then send a link to that email. Click the link, create a new password, and log in.

If you no longer have access to the email address you used to open your account, the process is harder. Go to the login page, click "Forgot Your Password?", and tell PayPal you cannot access your email. PayPal will ask you to verify your identity using information from your account—like your name, address, date of birth, and the last four digits of your card or bank account. Answer these questions correctly, and PayPal will let you change your email address and password.

If you cannot remember the answers to these security questions, contact PayPal's customer service. You can reach them through the PayPal website by clicking "Contact Us" at the bottom of any page. Response times vary, but PayPal usually replies within one to two business days.

Frequently Asked Questions

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

No. PayPal requires at least one payment method—a debit card, credit card, or bank account—to open an account. This is how PayPal verifies your identity and prevents fraud. If you do not have any of these, you will need to open a bank account first.

How long does it take to verify my payment method?

Verification usually takes one to three business days. If you added a card, the test charge appears on your statement within that window. If you added a bank account, the two test deposits appear within that window. Once you see them and enter the amounts into PayPal, verification is when ready.

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

PayPal operates in about 200 countries and regions, but features vary by location. Some countries cannot send or receive money internationally, and some cannot use when ready transfers to bank accounts. Check PayPal's country list or contact their customer service to confirm what you can do in your location.

What happens if I do not verify my payment method?

You can still browse and shop on PayPal, but you cannot send money or withdraw funds until verification is complete. You can verify at any time by following the steps PayPal provides. There is no important date, but you will not be able to use PayPal fully until you do.

Is it safe to link my bank account to PayPal?

PayPal uses encryption and fraud detection to protect your information. Your actual bank account number is not shared with merchants when you pay with PayPal—only PayPal sees it. That said, use a strong password, turn on two-factor authentication, and monitor your bank account regularly for unauthorized charges.