Setting up a PayPal account is a piece of cake. However, there is more to it than just filling out a form with your name and email address. There are a few steps and requirements to consider, which we have described in this comprehensive guide.
Also read: What is PayPal? How do you use it?
You need a number of things to set up a PayPal account, including a credit or debit card for making payments, your credit / debit card for verification purposes and, in some cases, even some form of ID such as a passport.
Types of PayPal Accounts
Before we go into setting up a PayPal account, you need to decide what type of PayPal account you want to make. There are two types: personal and business, each with certain advantages and ideal applications.
If you just want to send money to friends or shop online, a personal PayPal account is all you need. This is the easiest type of account to set up, and for the vast majority of people, this is the one you want to choose.
Read also: Venmo versus PayPal: main differences, advantages and disadvantages
The other type of PayPal account is specific to companies. Choose this option if you want to sell products online and accept debit and credit card payments for a small fee. A business account also gives up to 200 employees access to the account and offers a number of other special benefits.
For the purposes of this guide, we will focus on creating a personal PayPal account, but the process is similar for both types of accounts
Setting up a PayPal account
Let's start with the basics. To create a PayPal account, go to the Paypal website and click the Login button in the top right corner of the screen. The next step is to choose the desired account type: Personal or Business .
The next step is to fill in the form that appears with your name email address and password . You must also select the country in which you live. Press Continue and fill in the second form by selecting your nationality and entering your address. telephone number and any other required information. Your account will be created once you have reached Continue . But you are far from done.
In order to use PayPal, you must add your debit or credit card. This will link your PayPal account to a bank account so you can deposit or withdraw money with PayPal. You can do that by clicking the blue button Getting Started and filling out the form that appears. This is technically optional, but without it your PayPal account will be severely limited.
The last step in this process is to verify your email address, if you have not already done so, by clicking on the link in the email you received PayPal.
Below we have listed the complete list of steps for your overview.
How to set up a PayPal account:
- Visit the PayPal website and click the Login button in the top right corner.
- Select the desired account type – Personal or Business – and click Continue .
- Add in your name email address and password and then click Continue .
- Add your address and other required information and then click Continue .
- Optional: Click the blue button Get started add your credit card details and click Add card .
- Please verify your email address by clicking the link in the email you sent to PayPal.
How to Verify a PayPal Account
For security reasons, you must verify your PayPal account before entering your credit / debit card or bank account use. To verify a card on PayPal, log in to your account, click Wallet and select the card you want to verify. Then click on the link Confirm card followed by OK after which PayPal will charge a small amount to your card. Don't worry, you'll get the money back a few days after the card is verified.
To set up a PayPal account correctly, you need to verify your credit card.
The next step is to check PayPal's charge on your credit card statement – it's a four-digit code – and use it to verify the card. Just click the Wallet tab in your PayPal account, select the card you want to verify, enter the four-digit code and then click Confirm . That's it: You can now use PayPal to send and receive money.
The bank account process is more or less the same, with the main exception that PayPal deposits two random deposits into your bank account between $ 0.01 and $ 0.99. Once that happens, you will need to enter these two amounts to verify your bank account just as you entered the four-digit code to verify your credit card. And to answer your next question, no, you won't be able to keep the money deposited by PayPal – sorry for that.
Below we have again summarized the step-by-step instructions.
To verify a PayPal account:
- Click the Wallet tab and select the card you want to verify.
- Click on the link Confirm card followed by ] OK after which PayPal will charge a small amount to your card.
- Check the PayPal debit on your credit card statement and make a note of the four-digit code .
- Click the Wallet tab again in PayPal.
- Select the card that you want to verify.
- Enter the four-digit code and then click Confirm .
If you later add another card or bank account to your PayPal account, you must also verify that. Another thing to note is that PayPal may ask you for some form of identification at any time. This often happens once a certain amount has been deposited into your account. It varies depending on the country you live in, but it's primarily a way to prevent fraud and tax evasion – which is a good thing.
There you have it, folks – that's all you need to know about setting up a Paypal account. As you can see, the process is free, easy and doesn't take much time. Check out some of our other guides in the links below!