What you need to create a PayPal account

You can create a PayPal account in about 10 minutes using a computer or phone. You will need a valid email address, your name, and either a debit card, credit card, or bank account number. PayPal uses this information to verify who you are and to let you send and receive money.

If you do not have a debit or credit card yet, you can still open an account with just a bank account — you will just need your routing number and account number, which you can find on a check or by logging into your bank's website. PayPal will make two small deposits to your account (usually under $1 each) to confirm it belongs to you, and you will enter those amounts back into PayPal to finish the connection.

Key Takeaways

  • You can create a PayPal account with an email address, your name, and either a debit card, credit card, or bank account number.
  • PayPal offers two account types — Personal for sending money to friends and family, and Business for selling items or running a shop.
  • After you enter your payment method, PayPal will verify it by making small test deposits or charges that you must confirm.
  • Once your account is active, you can link additional cards or bank accounts, set up a security password, and turn on two-factor authentication to protect your account.
  • PayPal charges no fee to create an account or to receive money from friends, but does charge a fee when you send money internationally or when someone pays you for goods or services.

Step 1: Go to PayPal and choose your account type

Visit paypal.com on your computer or open the PayPal app on your phone. Click the "Sign Up" button. PayPal will ask you to choose between a Personal account and a Business account. A Personal account is for sending money to friends and family, paying bills, and receiving money from others. A Business account is for people who sell items, run a shop, or receive regular payments for services.

If you are just starting out and want to send money to a friend or family member, choose Personal. You can always change to a Business account later if you start selling things. For now, select Personal and click "Next."

Step 2: Enter your email and create a password

PayPal will ask for your email address — use one you check regularly, because PayPal will send you important messages there. Then create a password that is at least 8 characters long and includes uppercase letters, lowercase letters, and numbers. Write this password down somewhere safe, or use a password manager if you have one.

PayPal will also ask if you want to receive marketing emails about new features and offers. You can say yes or no — this does not affect your account. Click "Next" when you are done.

Step 3: Provide your personal information

PayPal will ask for your first name, last name, date of birth, and address. Use the name that matches your bank account or debit card — if the names do not match, PayPal may reject your payment method later. Your address should be where you currently live and receive mail.

PayPal uses this information to verify your identity and to follow federal banking rules. It will not be shared with other people unless you choose to send them money. Click "Next" when you have filled in all the fields.

Step 4: Add a payment method and verify it

PayPal will ask you to add a debit card, credit card, or bank account. If you are adding a card, enter the 16-digit number on the front, the expiration date, and the three-digit security code on the back. If you are adding a bank account, enter your routing number and account number.

After you submit this information, PayPal will verify it. If you added a card, PayPal will make a small charge (usually $1 or $2) that you will see on your card statement within a few days — this charge will be refunded automatically once PayPal confirms the card is real. If you added a bank account, PayPal will make two tiny deposits (usually less than $1 each) to your account. You will need to log into your bank, find those deposits, and enter the amounts back into PayPal to confirm the account is yours. This usually takes 1 to 3 business days.

Step 5: Confirm your email and start using your account

PayPal will send you an email to the address you provided. Open that email and click the link that says "Confirm your email" or "Verify your account." This step proves that you own the email address and can receive messages from PayPal.

Once you confirm your email and your payment method is verified, your account is active. You can now send money to friends and family using their email address or phone number, request money from others, and receive payments. To make your account more find, go to your Settings and turn on two-factor authentication — this means PayPal will ask for a code from your phone whenever you log in from a new device.

What happens if PayPal rejects your payment method

Sometimes PayPal will reject a card or bank account during verification. This usually happens because the name on the payment method does not match the name you gave PayPal, the address is different, or the card or account has been flagged by the bank for fraud protection.

If this happens, PayPal will send you an email explaining why. The most common fix is to add a different card or bank account that matches your name and address exactly. If you only have one card or account, contact your bank and ask them to remove any fraud flags, then try adding it to PayPal again. You can also contact PayPal's support team through the Help Center on their website — they can sometimes manually verify your payment method if there is a straightforward mismatch.

Fees you should know about

Creating a PayPal account is free, and receiving money from a friend or family member is free. However, PayPal does charge fees in certain situations. If you send money internationally (to someone in another country), PayPal charges a percentage of the amount plus a flat fee — the exact amount depends on which country you are sending to. If someone pays you for goods or services (like if you sell something online), PayPal charges a percentage of the payment, usually around 2.9% plus $0.30 per transaction.

When you first open your account, you will not owe any fees just for having it. Fees only happen when you actually send or receive money in ways that trigger them. You can see PayPal's full fee schedule on their website under "Pricing" or "Fees."

Frequently Asked Questions

Do I need a bank account to create a PayPal account?

No. You can create an account with just a debit card or credit card. However, if you want to withdraw money from PayPal back to your own account, you will eventually need to link a bank account. You can add one later whenever you need it.

How long does it take for my account to be fully active?

If you add a debit or credit card, your account is usually active within a few minutes to a few hours. If you add a bank account, it takes 1 to 3 business days because PayPal has to wait for the test deposits to show up in your bank account. You can start using your account to send money while you are waiting for bank verification, but you will not be able to withdraw money until the bank account is confirmed.

What if I forget my PayPal password?

Go to paypal.com and click "Log In." Then click "Forgot your password?" Enter your email address, and PayPal will send you a link to create a new password. Click the link in the email and follow the steps. Make sure you check your spam folder if you do not see the email within a few minutes.

Can I have more than one PayPal account?

PayPal's rules say each person should have only one Personal account. If you need a Business account as well, you can convert your Personal account or create a separate Business account linked to the same email address. Having multiple accounts with the same email address may cause PayPal to limit or close them, so contact PayPal support if you need more than one account.

Is PayPal safe to use?

PayPal uses encryption and fraud detection to protect your account and payment information. To keep your account safer, use a strong password, turn on two-factor authentication, and do not share your login details with anyone. If you see a transaction you did not make, report it to PayPal right away through the Resolution Center in your account.