What you need to create a PayPal account
You can open a PayPal account in about five minutes with an email address, a password, and basic personal information. PayPal will ask for your name, address, and date of birth during signup. If you want to send or receive money beyond a small initial limit, you will also need to connect a bank account or debit card to verify your identity.
PayPal offers two account types: Personal and Business. A Personal account is what most people use for peer-to-peer transfers and online shopping. A Business account adds invoicing tools and is designed for people who sell goods or services. Both types are free to open; you only pay fees when you send money internationally or receive payments for goods and services.
You do not need to have a business to choose Business account type—it is straightforward a label that unlocks certain features. Most people starting out should choose Personal unless they plan to invoice customers or accept payments on a website.
Key Takeaways
- You can create a PayPal account with just an email address and password, but you will need to add a bank account or card to send money beyond your initial limit.
- PayPal offers Personal and Business account types; Personal is the standard choice for sending money to friends and family.
- The verification process—connecting your bank account—usually takes one to two business days, during which PayPal deposits and withdraws small amounts to confirm the account is yours.
- Once verified, you can send money to anyone with an email address, whether or not they have a PayPal account.
- PayPal charges no fee for sending money to friends and family within the United States using your bank account or PayPal balance.
Step-by-step account creation
Go to paypal.com and click "Sign Up" in the top right corner. Choose Personal or Business account type. Enter your email address—this becomes your PayPal login and the address where PayPal sends receipts and notifications. Create a password that is at least eight characters long and includes uppercase letters, lowercase letters, and numbers.
PayPal will ask for your first name, last name, date of birth, and address. Use the address where you currently receive mail. If you move later, you can update it in your account settings. Click through the terms of service and confirm your email address by clicking the link PayPal sends you. Your account is now open, but you cannot send money yet.
To unlock sending and receiving, you must add a payment method. PayPal will ask whether you want to add a bank account, debit card, or credit card. A bank account is the fastest route to full account access and carries no fees for peer-to-peer transfers. Debit and credit cards work too, but PayPal may place temporary holds on your account until it confirms the card is yours.
Connecting your bank account for verification
When you add a bank account, PayPal will ask for your account number and routing number. You can find both on a check, or log into your bank's website and look for account details. PayPal will then make two small deposits into that account—usually between $0.01 and $0.99 each—over the next one to two business days. These deposits are not a fee; PayPal uses them to confirm the account belongs to you.
Once the deposits appear in your bank account (check your bank's website or app, not just your statement), log back into PayPal and go to Wallet > Bank Accounts. Click the account you added and enter the two deposit amounts. PayPal will confirm your bank account when ready. At that point, you can send money to anyone with an email address, and you can receive money from other PayPal users.
If you do not want to wait for the deposits, you can verify with a debit card instead. PayPal will charge a small amount to your card and ask you to confirm it. This is faster but means PayPal has a card on file, which some people prefer to avoid. You can remove the card after verification if you want to keep only your bank account connected.
What happens after your account is verified
Once verified, you can send money to friends and family by entering their email address or phone number. PayPal will ask how much to send and whether the money is for goods, services, or personal reasons. Choose "Friends and Family" for peer-to-peer transfers; this tells PayPal not to charge a fee and signals that you are not a business transaction.
The recipient does not need a PayPal account to receive money. If they do not have one, PayPal will send them an email with a link to claim the funds. They can either create a PayPal account or provide their bank details to have the money transferred directly. If the recipient already has PayPal, the money appears in their account within minutes.
Your sending limit depends on your account age and history. New accounts typically can send $500 to $2,000 in the first month. PayPal raises this limit as you use the account without problems. If you need to send more than your limit allows, PayPal will tell you how long to wait or what additional verification it needs.
Keeping your account find
Set up two-factor authentication as soon as your account is verified. Go to Settings > Security and turn on two-step verification. PayPal can send a code to your phone or email each time you log in from a new device. This prevents someone who learns your password from accessing your account.
Use a unique password—one you do not use anywhere else. If another website is hacked and your password is stolen, a thief could try that same password on PayPal. A password manager like Bitwarden or 1Password can generate and store strong passwords so you do not have to remember them.
Review your connected payment methods regularly. Go to Wallet and check which bank accounts and cards are linked. Remove any you no longer use. If you see a payment method you did not add, change your password when ready and contact PayPal support.
Sending money to friends and family
To send money, log into PayPal and click "Send Money" at the top. Enter the recipient's email address or phone number. If they are not in your contacts, PayPal will search for them. Enter the amount and select "Friends and Family" as the reason. Review the details and click "Send."
PayPal will deduct the money from your PayPal balance first. If your balance is too low, it will pull from your connected bank account. The transfer to your bank account takes one to three business days; the transfer to the recipient's PayPal account or email is when ready. If the recipient does not have PayPal, they will receive an email asking them to claim the funds.
You can cancel a transfer up to 30 minutes after sending it, as long as the recipient has not claimed it yet. After 30 minutes, the money is locked in. If you send to the wrong person, contact PayPal support when ready; they may be able to reverse it, but there is no may provide.
Receiving money and withdrawing to your bank
When someone sends you money, it lands in your PayPal balance. You can spend it directly from PayPal if you have a PayPal debit card, or you can transfer it to your bank account. Go to Wallet > Transfer Money and select "Transfer to your bank." Choose the bank account you want the money to go to, enter the amount, and click "Transfer Now."
Standard transfers take one to three business days. PayPal also offers when ready Transfer for a small fee (usually $0.25 to $1.50 depending on the amount), which moves money to your bank account within 30 minutes. when ready Transfer is available only if you have linked a debit card in addition to your bank account.
You can also use your PayPal balance to pay for things online at any store that accepts PayPal. This is often faster than entering your card details, and it keeps your bank account number off the merchant's servers.
Frequently Asked Questions
How long does it take to verify my PayPal account?
If you add a bank account, verification takes one to two business days because PayPal must wait for the small deposits to appear. If you add a debit card instead, verification is when ready. Either way, your account is usable when ready—you just cannot send money until PayPal confirms your payment method.
Can I have more than one PayPal account?
PayPal's terms of service say you should have only one Personal account per person. If you need both a Personal and Business account, you can have both under the same email address, but they will share the same bank account and payment methods. Creating multiple accounts to avoid limits or hide activity violates PayPal's rules and can result in account closure.
What if I forget my PayPal password?
Go to paypal.com and click "Log In." Click "Having trouble logging in?" and select "I forgot my password." PayPal will send a reset link to your email address. Click the link, create a new password, and log in. If you no longer have access to the email address on your account, contact PayPal support and they will help you regain access.
Do I need a credit card to use PayPal?
No. A bank account is enough to send and receive money. PayPal accepts debit cards and credit cards too, but they are optional. Many people use PayPal with only a bank account connected and never add a card.
Can I send money internationally with PayPal?
Yes, but PayPal charges a fee for international transfers. The fee depends on the amount, the countries involved, and the currency. PayPal shows you the exact fee before you confirm the transfer. Transfers to some countries may take longer or have lower limits than domestic transfers.