What you need to create a PayPal account
You need three things to open a PayPal account: a valid email address, a password you create, and either a debit card, credit card, or bank account number. PayPal will verify whichever payment method you add—this usually takes a few minutes to a few days. You do not need to fund the account upfront; you only pay when you send money or make a purchase.
If you plan to receive money from others, you will also need to confirm your identity. PayPal will ask for your legal name, date of birth, and address. For some account types, they may request a photo ID or the last four digits of your Social Security number. This step protects both you and the people sending you money.
Key Takeaways
- You can create a PayPal account with just an email address and a debit or credit card, and it takes about five minutes.
- PayPal verifies your payment method by checking it against your bank or card issuer, which usually completes within a few days.
- To receive money from others, you must confirm your identity with your legal name, date of birth, and address.
- Personal accounts are free to open and use for receiving payments, but sending money to friends costs nothing while paying for goods or services incurs a small fee.
- You can link multiple cards or bank accounts to one PayPal account, and switch between them when you send or receive money.
The steps to create your account
Go to paypal.com and click the "Sign Up" button in the upper right corner. PayPal will ask you to choose between a Personal account or a Business account. A Personal account is for individuals sending and receiving money; a Business account is for people who run a business and need invoicing tools and higher transaction limits. Most people choose Personal.
Enter your email address and create a password. Your password must be at least eight characters long and include at least one number and one letter. PayPal will ask for your country and whether you want to receive marketing emails—you can uncheck that box. Click "Next" and you will move to the identity section.
Enter your legal first and last name, date of birth, and home address. This information must match what your bank or card issuer has on file. PayPal uses it to verify your identity and prevent fraud. Once you enter this information, click "Agree and Create Account."
Adding and verifying a payment method
After you create your account, PayPal will ask you to add a debit card, credit card, or bank account. If you add a card, enter the card number, expiration date, and the three-digit security code on the back. If you add a bank account, you will need your routing number and account number—both appear on the bottom left of a check, or you can find them in your bank's online portal.
PayPal verifies the payment method by sending a small test charge to your card or bank account. For a debit or credit card, this usually shows up within a few minutes and disappears within a few days—you are not charged for it. For a bank account, PayPal deposits two small amounts (usually under one dollar each) and asks you to confirm the exact amounts. This process takes one to three business days.
Once PayPal confirms your payment method, you can use it to send money. You do not need to wait for verification to receive money from others, though some features may be limited until your identity is fully confirmed.
Confirming your identity to receive money
If you only plan to receive money from friends or family, you may not need to do anything beyond what you already entered when you created your account. However, if you receive a large amount of money or if PayPal suspects unusual activity, they will ask you to confirm your identity.
PayPal's standard request is for your legal name, date of birth, address, and the last four digits of your Social Security number. You enter this information directly into your account settings. In some cases, PayPal may ask for a photo ID—a driver's license, passport, or state ID. You can upload an image of the front and back of your ID through your account.
This verification usually takes 24 to 48 hours. Until it is complete, PayPal may limit how much money you can receive or hold in your account. Once confirmed, these limits lift and you can receive and hold larger amounts.
Linking multiple cards or bank accounts
You can add more than one payment method to your PayPal account. This is useful if you want to use different cards for different purposes, or if one card is maxed out and you need to switch to another. To add a second card or bank account, go to your account settings, find the "Wallet" or "Payment Methods" section, and click "Add a Card" or "Add a Bank Account."
Each new payment method goes through the same verification process as your first one. Once verified, you can choose which card or account to use each time you send money. You can also set one as your default, so PayPal uses it automatically unless you change it.
If you remove a payment method, PayPal keeps a record of it for your security. You can re-add it later without going through verification again.
Understanding PayPal's fee structure
Receiving money from friends or family through PayPal's "Friends and Family" option is free. Sending money to friends and family is also free if you use a bank account or debit card, but costs 1% of the amount (with a minimum of $0.30 and a maximum of $20) if you use a credit card.
Paying for goods or services—such as buying something from an online store—costs the seller a fee, not you. You pay only the purchase price. However, if you send money as a "Goods and Services" payment (which is different from Friends and Family), you will pay a fee of 2.2% plus $0.30.
International transfers cost more. Sending money outside the United States typically costs between 1% and 5% depending on the destination country and the payment method you use. PayPal shows you the exact fee before you confirm the transfer.
What to do if PayPal asks for more information
Sometimes PayPal will ask you to confirm information or take additional steps before you can use your account fully. This usually happens if you receive a large payment, if your account activity looks unusual, or if PayPal detects a potential security issue.
If PayPal sends you an email asking for information, do not click links in the email. Instead, log into your PayPal account directly through paypal.com and look for a notification in your account dashboard. Scammers often send fake PayPal emails asking for passwords or card numbers. PayPal will never ask for your password via email.
If you see a message in your account asking you to confirm your identity or update your payment method, follow the steps PayPal provides. These requests usually take 24 to 48 hours to process. If you do not complete them, PayPal may limit your account until you do.
Frequently Asked Questions
Do I need a bank account to create a PayPal account?
No. You can create an account with just a debit or credit card. A bank account is optional and useful mainly if you want to transfer money out of PayPal to your bank, or if you prefer not to use a card.
How long does it take to verify my payment method?
For a debit or credit card, verification usually takes a few minutes to a few days. For a bank account, it takes one to three business days because PayPal deposits two small test amounts and waits for you to confirm them. You can use your account to receive money while verification is pending.
Can I use PayPal without confirming my identity?
Yes, for basic sending and receiving among friends and family. However, if you receive a large payment or if PayPal suspects fraud, they will require identity confirmation before you can access your money. Confirming your identity upfront removes this risk.
What happens if I forget my PayPal password?
Go to paypal.com and click "Log In." Then 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 you can log in when ready.
Can I close my PayPal account after I create it?
Yes. Log into your account, go to settings, find "Close your account," and follow the steps. PayPal will ask you to confirm and may ask why you are leaving. You can reopen an account with the same email address later if you change your mind.