Pay Pal Set up Guide

Step-by-Step Guide: Setting Up a PayPal Account

What you’ll need before you start

  • An email address you can access

  • Your phone (to receive a verification code)

  • Your legal name and home address

  • A bank account and/or debit/credit card (optional now, but recommended)

1) Go to PayPal and start signup

  1. Open a web browser and go to PayPal’s website or download the PayPal app from your phone’s app store.

  2. Click Sign Up (or Create Account).

2) Choose the right account type

PayPal usually offers two main options:

Personal Account (best for most people starting out)

Choose this if you:

  • Buy online

  • Send/receive money from friends or customers occasionally

  • Don’t need a business name on invoices (yet)

Business Account (best for selling, invoicing, or running a brand)

Choose this if you:

  • Plan to sell products/services regularly

  • Want your business name shown to customers

  • Want invoicing/tools for selling online

Tip: If you’re starting a dropshipping or e-commerce business, Business is usually the better pick.

3) Enter your basic info

  1. Enter your email address.

  2. Create a strong password.

  3. Enter your phone number and verify it (PayPal will text you a code).

  4. Enter your legal name and address exactly as your ID/bank has it.

4) Confirm your email

  1. PayPal will send you an email.

  2. Open it and click Confirm Email Address (or follow the confirmation link).

5) Add and confirm a payment method (recommended)

You can do one or both:

Option A: Link a debit/credit card

  1. Go to Wallet.

  2. Click Link a card.

  3. Enter card details and save.

  4. PayPal may do a small temporary authorization charge to confirm it.

Option B: Link a bank account

  1. Go to Wallet.

  2. Click Link a bank.

  3. Search/select your bank and log in or enter routing/account numbers manually.

  4. Confirm the bank (PayPal may use instant login or small test deposits).

Why this matters: linking a bank/card helps avoid holds, increases trust, and makes withdrawals easier.

6) Set up security so you don’t get locked out

  1. Turn on 2-step verification (Security settings).

  2. Add a backup method if PayPal offers it (backup phone/email).

  3. Set up security questions if prompted.

7) If you chose Business: complete your business profile

  1. Go to Settings or Business Profile.

  2. Add:

    • Business name (or your name if you’re a sole proprietor)

    • Business type (individual/sole proprietor/company)

    • Category (what you sell)

    • Customer service email/phone (optional but helpful)

  3. Add a logo if you have one (optional).

8) Verify your identity (may be required)

PayPal may ask for verification to lift limits:

  • Upload a photo ID

  • Confirm address or personal details

  • Provide business info (for Business accounts)

Do this ASAP if you plan to accept payments—verification reduces limitations later.

9) Test your account (quick check)

  1. Send a small payment to a trusted person (or request $1 from them).

  2. Confirm you can:

    • Receive money

    • Transfer to bank

    • Use your linked card/bank

10) Key settings to check right away

  • Preferred payment method (bank vs card)

  • Currency (if you sell internationally)

  • Notifications (turn on payment alerts)

  • Shipping address (make sure it’s correct)

Common mistakes to avoid

  • Using a nickname instead of your legal name

  • Not verifying email/phone/bank (causes limits later)

  • Mixing business income into a Personal account long-term

  • Logging in from lots of different devices/VPNs quickly (can trigger security flags)