What you need to create a PayPal account

You can set up a PayPal account in about 10 minutes with an email address, a password, and either a debit card, credit card, or bank account number. PayPal does not charge you to open an account. The account itself is free — you only pay fees when you send money to someone outside the US, receive money as a business, or use certain features like when ready transfers.

PayPal will ask you to confirm your identity before you can send or receive money. This means providing your legal name, date of birth, and address. If you plan to link a bank account, have your routing number and account number ready. If you are using a card, have the card itself in front of you.

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 ask for your legal name, date of birth, and address before you can send or receive money.
  • Linking a bank account lets you move money to and from PayPal without card fees, but takes one to two business days.
  • PayPal charges no fee to open an account, but does charge fees for international transfers and some other services.
  • You can use PayPal to send money to friends, pay for online purchases, or receive payments if you sell things.

Step 1: Go to PayPal.com and click Sign Up

Open a web browser and go to paypal.com. You will see a "Sign Up" button in the top right corner. Click it. PayPal will ask whether you want a Personal account or a Business account. Choose Personal if you are sending money to friends or paying for purchases. Choose Business if you plan to receive payments for selling items or services.

The difference matters: a Business account shows your business name to people who pay you, and PayPal charges different fees for business transactions. You can change from Personal to Business later if you need to.

Step 2: Enter your email and create a password

PayPal will ask for your email address. Use an email you check regularly — PayPal will send you login links and security alerts there. Then create a password that is at least 8 characters long and includes uppercase letters, lowercase letters, and numbers. PayPal will tell you if your password is too weak.

Do not use a password you have used on other websites. If another site gets hacked, someone could use that same password to get into your PayPal account and your money.

Step 3: Provide your legal name, date of birth, and address

PayPal will ask for your full legal name as it appears on your ID or bank account. Enter your date of birth and your current street address. PayPal uses this information to verify who you are and to follow anti-fraud rules that banks have to follow.

If the name on your account does not match the name on your bank account or card, PayPal may block transfers later. Use the exact legal name you use for banking.

Step 4: Link a payment method — card or bank account

PayPal will ask you to add a debit card, credit card, or bank account. If you use a debit or credit card, enter the card number, expiration date, and the three-digit security code on the back. PayPal will charge a small amount to the card (usually $1 to $2) and then refund it — this confirms the card is real and belongs to you.

If you link a bank account instead, you will need 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 less than $1 each) within one to two business days. You will then enter those amounts into PayPal to confirm the account is yours. A bank account has no fees for transfers, while cards may charge a small percentage.

Step 5: Confirm your email address

PayPal will send a confirmation email to the address you provided. Open that email and click the confirmation link. This proves you own the email address and can receive messages from PayPal. Without this step, you cannot send or receive money.

If you do not see the email within a few minutes, check your spam or junk folder. PayPal emails sometimes get filtered there by mistake. Once you click the link, your account is active and ready to use.

What you can do once your account is set up

With a confirmed PayPal account, you can send money to anyone with an email address or phone number in the US. You can also pay for purchases on websites that accept PayPal — you just log in instead of entering your card number each time. This is safer because the website never sees your actual card number.

If someone sends you money, it lands in your PayPal balance. You can leave it there, send it to someone else, or transfer it back to your bank account. Transfers to your bank account take one to three business days and are free if you linked a bank account. If you only linked a card, you can request a check instead, which takes longer but also costs nothing.

Frequently Asked Questions

Can I use PayPal without linking a card or bank account?

No. PayPal requires at least one payment method before you can send money. You can receive money without one, but to send anything you need a card or bank account linked to your account.

What happens if I forget my PayPal password?

Go to paypal.com and click "Log In". Then click "Forgot your password?" PayPal will send a reset link to your email address. Click the link and create a new password. This takes a few minutes.

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 shown to people you pay — they only see your email. However, only link accounts you trust, and check your bank statement regularly for unauthorized transfers.

Can I have more than one PayPal account?

PayPal's rules say one account per person. If you need a business account, you can upgrade your personal account instead of creating a new one. Using multiple accounts with the same person can get both accounts closed.

How long does it take to send money after I set up my account?

Once your email is confirmed and your payment method is verified, you can send money when ready. If you linked a card, it is when ready. If you linked a bank account, it may take one to two business days for PayPal to confirm the account before you can send.