How to Set Up a PayPal Account

Updated on April 10, 2024

At a Glance

  • Setting up a PayPal account is free, allowing for cost-free purchases and money transfers.
  • The process involves having an existing credit or debit card, recent bank statements for verification, and a valid photo ID.
  • Follow the step-by-step guide on the PayPal website, including mobile number verification, entering personal details, and agreeing to terms.
  • Choose between a personal or business account, each offering different features. Verification involves linking your bank account or credit/debit cards, with additional steps for enhanced security.

Setting up a PayPal account is a reasonably simple task. With PayPal, users can easily make bank transactions – transferring money to businesses and individuals, checking your bank statement, or setting up verification for essential documents.

While setting up the account is easy, we have created an in-depth guide that explains the process. There are specific basic requirements to set up a PayPal account- an active bank account and functional credit/debit cards. Without these two, your PayPal account is redundant. The final step in setting up the account is to verify the email address and mobile number.

Follow along to know more about what you need to set up a PayPal account.

How to Set Up a PayPal Account: Step By Step

Signing up for PayPal is completely free. You can make purchases and send money to people for no cost or transaction fees on PayPal. If you have money on your PayPal account, you can use it to send money or buy things online. Transaction fees are applicable for credit and debit cards. Additional fees are levied if money is received or transferred from outside the United States.

There are few things required for setting up a PayPal account. This includes an already existing credit or debit card, recent bank statements for verification, and a photo ID like a passport or any other government-issued identification card.

Follow the step-by-step guide to set up your PayPal account:

  • Open the PayPal website and click on the Sign-Up place on the top right corner of the webpage.
  • Choose the type of account you need- Personal or Business and click on Continue.
  • The page will ask you to enter your mobile number, followed by a verification process.
  • Once your number is verified, you will be asked to enter your personal details. This includes your name, email address, and password for the account. Then, click Continue to forward with the application.
  • Be sure to verify your email address by clicking on the link sent to your email account.
  • Next, you will be asked to enter your current address and associated information. Once entered, click on Continue.
  • Optional step- Click on the Get Started button to enter in your bank details- this includes your card details and bank-related information.
  • Read the terms and conditions and check the box to agree to the terms of use.
  • You are now ready to use your PayPal account!

PayPal offers its customers two types of accounts – Personal and Business, which essentially cover most interests and needs of people.

A personal PayPal account is for those who wish to make simple transactions like sending money to friends and family or online shopping. Business accounts provide more complicated functions that include accepting other debit and credit cards for payment, operating under a company name, giving access to more than 200 company employees, and a separate email account to deal with customer care issues. PayPal also offers a Pro version of their services, useful for big businesses handling multiple transactions and accounts. PayPal Pro is designed to optimize cash flows coming to a business. 

How to Verify Your PayPal Account

For purposes of safety, it is important to verify your PayPal account before it is operational. The verification process begins with you linking your bank account or debit/credit card with PayPal. For this, you need to go to PayPal and choose the Pay and Get Paid Tab. Under the Wallet section, choose Banks and Cards. Choose your bank and enter the cards you need to verify.

Verifying Credit And Debit Cards

If you choose to use your debit/credit cards, you need to check PayPal’s policy and charge on credit card statements. You need a four-digit code to verify the card. Here is a step-by-step guide to verifying your credit/debit card:

  • Open PayPal and log in to your account.
  • Click on the Pay and Get Paid tab
  • In the Wallets section, go to the Banks and Cards section to verify the card
  •  Select your bank account and the card you want to verify
  • Check the bank statement and card activity on PayPal’s interface
  • Enter the four-digit code and click confirm.
  • You have now verified your cards, and they are ready to use!

If you are opening a PayPal account outside the US, be sure to activate international transactions on your credit/debit card.

How to Add a Bank Account to a PayPal Account

The process of verifying a bank account is like that of credit/debit cards. An additional factor is the deposits made by PayPal to your bank account. To verify the account, PayPal makes two deposits of random amounts, between $0.01 and $0.99. Once the deposit is made, PayPal will ask you to verify the transaction by entering the four-digit code. Once the verification is done, PayPal reverses the transaction. Thus, your bank account has been verified.

Additional bank accounts require their own verification. It is important to note that PayPal can initiate a verification at any given time, especially if it detects unusual or large transactions being made. This policy varies from country to country. This policy is used to detect fraud or tax evasion.

How to Add a Credit Card to a PayPal Account

Credit cards are a great way to shop and accrue benefits. Here is how you can add new credit cards to your PayPal account.

  • Open the PayPal website
  • Click on the Pay and Get Paid Tab
  • Click on the Wallet tab at the top of the page
  •  Locate the Link a debit or credit card tab on the left-hand side of the page
  • Click on the link and follow the instructions to add your credit card

It is important to note that all additional credits added need to go through individual verification checks before being used on PayPal. These are security measures used by PayPal to keep fraud and scams under check, and user accounts safe.

Read More


This is it! You now have a fully active PayPal account. We have covered everything there is to know about setting up a PayPal account. The process is straightforward, and it barely takes fifteen minutes to set up. You can use the desktop website or the mobile app to access your PayPal account. Having a PayPal account makes managing finances much easier, especially when most transactions have gone digital. Using PayPal makes everyday transactions streamlined, functional, and easy. It is a widely accepted service with thousands of happy customers.

Frequently Asked Questions (FAQ)

How do I create a PayPal account?

To create a PayPal account, go to the PayPal website and click on the “Sign Up” button. Follow the prompts to enter your personal information and set up your account.

Is it free to create a PayPal account?

Yes, it is free to create a PayPal account. However, there may be fees associated with certain transactions or services offered by PayPal.

What information do I need to provide to create a PayPal account?

To create a PayPal account, you will need to provide your email address, a password, and some basic personal information such as your name, address, and phone number.

Can I link multiple bank accounts or credit cards to my PayPal account?

Yes, you can link multiple bank accounts and credit cards to your PayPal account. This allows you to choose which funding source to use when making payments or receiving funds.

How do I verify my PayPal account?

To verify your PayPal account, you can add and confirm your bank account or apply for and confirm a PayPal credit card. Verification helps increase your account security and allows you to lift certain account limits.

How do I send money using PayPal?

To send money using PayPal, log in to your account and click on the “Send & Request” tab. Enter the recipient’s email address or mobile number, the amount you want to send, and choose the currency. Review the details and click “Send Now” to complete the transaction.

How long does it take for money to be transferred through PayPal?

The time it takes for money to be transferred through PayPal depends on several factors, including the type of payment, the country the payment is sent to, and any security checks that may be necessary. In general, most PayPal transactions are completed within a few minutes to a few hours.

Can I use PayPal for online shopping?

Yes, PayPal is widely accepted as a payment method for online shopping. When checking out on a website, look for the PayPal logo or select PayPal as your payment option. You will then be redirected to log in to your PayPal account and confirm the payment.

What are the fees for using PayPal?

There are various fees associated with using PayPal, including fees for receiving payments, currency conversion fees, and fees for certain types of transactions. It is recommended to review PayPal’s fee structure on their website or contact their customer support for specific details.

Is my financial information safe with PayPal?

PayPal uses advanced security measures to protect your financial information. They encrypt and securely store your data, and your payment details are never shared with the recipient of a transaction. However, it is always important to use strong passwords and be cautious of phishing attempts to further enhance your account security.

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Frank Gogol

I’m a firm believer that information is the key to financial freedom. On the Stilt Blog, I write about the complex topics — like finance, immigration, and technology — to help immigrants make the most of their lives in the U.S. Our content and brand have been featured in Forbes, TechCrunch, VentureBeat, and more.

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