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Want to get started with PayPal but don't know where to begin? PayPal is the most popular payment processing site in the world and currently provides service to over 325 million people in 200 different countries.[1] You can use PayPal to send money to friends and family, shop online securely, and even send invoices and payment requests. This wikiHow article will teach you how to use PayPal, covering everything from signing up for an account to sending and receiving money.
Making Online Payments with PayPal
- Sign up for a free account at https://www.paypal.com, or by installing the PayPal mobile app on your Android, iPhone, or iPad.
- Link your bank account and/or debit card to start shopping online securely with PayPal.
- You can add money to your PayPal account by transferring it from your bank, depositing a check, or using PayPal Cash in a participating store.
Steps
Signing Up
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Click Sign Up on the PayPal website. To create your account, go to the PayPal homepage. Click the "Sign Up" button on the upper right-hand corner of the screen.
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Decide between a personal and business account. PayPal will immediately ask you to choose between a personal and a business account.
- A personal account is best for online shopping and exchanging money with friends and family members.
- A business account is the better option if you're using PayPal to transfer money for professional services, especially if you're setting up an account for multiple people from a single company.[2]
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Set up your email. PayPal doesn't require you to create a username, but you need to link one e-mail address to your PayPal account.
- The e-mail address you use is up to you. Just make sure it's an address you use often and can easily log into to get notifications about when your money comes through.
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Add your phone number. This is a must to create a PayPal account since you need to send and receive codes from PayPal via text message.[3] When you add your number, click Next to continue.
- You will receive a text from PayPal on your phone that you need to enter into the site to continue.
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Add your password. You'll need to set up a secure password.
- You will give PayPal a lot of sensitive information, so make sure your password is secure. Use a combination of upper and lower case letters as well as numbers and special characters (like #, !, @, etc.). A random string of numbers, letters, and special characters (i.e., 13b%E56s$T89!) is generally better than a recognizable word (i.e., HaPPy123!).
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Provide basic information. After you set up your password, you'll be redirected to a page asking for basic information. Provide PayPal with information such as your name, birth date, and address.
- Click Agree and Create Account to continue.
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Choose what to do first. Select an option between Send money, Get paid, or Shop online. Regardless of what you pick, you will be prompted to link a card to your account.
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Enter your card payment details. Using the fields provided, enter the card number, card type (this usually fills in automatically), expiration date, security code or CVC, and billing address.
- Click Link Card to continue.
- If you want to add more cards or payment methods in the future, go to Wallet > Link Card/Bank Account
- Each time you send or receive money, you can log into this account. You don't have to go through this process more than one time!
Sending Money and Spending
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Deposit money. Even if your PayPal is empty, PayPal can draw from your bank to make payments. However, some people prefer to have money in their PayPal account itself. To put money in your PayPal account, log onto your account and then click "Transfer Money" on your dashboard or on the Wallet page. You can then transfer money to your PayPal account through the bank account linked to your account.[4]
- You can also add money to your account using PayPal Cash at a store, or by depositing a check.
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Send money to others via PayPal. If you owe someone money, it's easy to send it via PayPal. Simply click the "Send and Request" option. Enter the amount and the e-mail address of the person who's receiving the money. Then, hit "Send."[5]
- Make sure you use the correct e-mail address. The e-mail address you use should be the e-mail the other person uses for PayPal.
- You can easily send money to a family member using PayPal and a credit card using this step.
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Make online purchases using PayPal. Many sites have a "Pay with PayPal" button at checkout. If you choose this button, you usually just have to enter the e-mail address associated with your account to pay. This can be a lot quicker than entering credit card information.[6]
- Some services allow you to pay bills with PayPal, like Netflix and Hulu.
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Transfer money into your bank account. Once the money is in your PayPal account, you can withdraw it at any time. Hit the "Transfer" button and then transfer your money directly into the bank account linked with your PayPal. This takes about one business day.
- You can also choose to transfer your money within minutes using a linked debit card for a small fee, usually 1.75% of the amount transferred. This form of transfer is typically completed within 30 minutes.[7]
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Get a PayPal debit card if you use PayPal frequently. A PayPal debit card works like a regular debit card, but it takes money directly from your PayPal account. It's best if you need immediate access to your PayPal money. It's accepted anywhere that takes cards, as well as most ATMs. You can withdraw up to $400 a day if you use a PayPal debit card.
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Cancel a PayPal payment if it’s still pending. If you made a mistake in your payment to another user, go to your PayPal account and click on the Activity page. Find the pending payment, which should show a status of “Unclaimed.” Under the payment, click “Cancel,” then “Cancel Payment.”[8]
- If the payment has already been accepted, contact the recipient to request a refund.
Receiving Money
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Give people the e-mail associated with your PayPal account. If you want people to give you money via PayPal, they will need your e-mail address. Make sure when requesting to receive money via PayPal you give people the e-mail address associated with your account and not a different address.[9]
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Request money via PayPal. You can send requests for money through PayPal by logging into your account. Click "Send and Request", then "Request."
- Enter the e-mail or phone number of the person you're requesting it from, then click Next and enter the amount of money you wish to receive. Click Request Now for them to receive the request.[10]
- The other person only needs to accept or approve the request in order to send the money to the requester.
- This is a good tool if you need to send someone a gentle reminder they owe you money. For example, if a friend borrowed money from you for something, you can send them a reminder of the amount via PayPal.
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Send invoices via PayPal. If you do any kind of freelance work, you can easily invoice your hours using PayPal. In the "Send and Request" tab, you can select "Send an invoice" from the menu on the right side of the page.
- Fill out a form where you provide details of the services you provided, your hours, your rates, and the total amount owed.[11]
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Link PayPal with sites you sell on. If you sell things online, with sellers like eBay, Facebook Marketplace, and Amazon, most sites will allow you to link your account to your PayPal. This way, when customers make purchases, their money will automatically be directed to your PayPal account. Every site has a different procedure for linking your PayPal account, but you usually just need to enter the e-mail associated with your PayPal and possibly some personal information.
- Expect a fee to be deducted from most invoices and sales. If you use PayPal as an online merchant or as a way to invoice an employer, a fee of 2.9% + $0.30 will be deducted from your final payment. To get around this fee, calculate it into your price or invoice by multiplying your desired price by 0.029, then adding $0.30.[12]
- If you’re transferring money between friends and family with a linked credit card, you’ll be charged the same fee. If you’re using a linked bank account, you won’t be charged a fee.
- For a full, detailed list of fees in all countries and for different kinds of companies, visit PayPal’s fee page here: https://www.paypal.com/en/webapps/mpp/paypal-fees
Community Q&A
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QuestionWhat happens if I buy something with PayPal that costs more than the amount of money in my bank account?Community AnswerThat depends on your bank. Either the transaction will be refused, or your bank account will drop below 0 and your bank may charge you an overdraft fee.
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QuestionWhat's the difference between "sending money to friends and family" and paying money for a "service"?Community AnswerSending to friends and family ("Personal Payment") waives your buyer protection, so PayPal will not assist if you and the seller get into a dispute. Also, the person receiving money doesn't have to pay a fee to PayPal. Someone selling goods or services is not allowed to ask their customers to use the Personal Payment system, and may lose their ability to use PayPal if they're reported.
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QuestionWhat is my PayPal address?Community AnswerThis refers to the email address you entered when you signed up for PayPal.
Tips
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Download the mobile app for Android, iPhone, and iPad to access your money in PayPal without having to use a computer.Thanks
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References
- ↑ https://www.paypal.com/ai/webapps/mpp/about
- ↑ https://www.paypal.com/us/selfhelp/article/What-is-the-difference-between-Personal,-Premier,-and-Business-accounts-FAQ2258
- ↑ https://www.paypal.com/bb/cshelp/article/what-information-is-required-to-open-a-personal-paypal-account%E2%80%AF-help328
- ↑ https://www.paypal.com/us/selfhelp/article/how-do-i-add-money-to-my-paypal-balance-faq2404
- ↑ https://www.paypal.com/us/webapps/mpp/send-money-online
- ↑ https://www.paypal.com/us/webapps/mpp/pay-online
- ↑ https://www.paypal.com/webapps/mpp/paypal-fees
- ↑ https://www.paypal.com/us/selfhelp/article/can-i-cancel-a-paypal-payment-faq637
- ↑ https://www.paypal.com/us/selfhelp/article/how-do-i-get-paid-faq1750
- ↑ https://www.paypal.com/us/selfhelp/article/how-do-i-request-payments-or-send-an-invoice-faq2155
- ↑ https://www.paypal.com/us/cshelp/article/how-do-i-create-and-send-an-invoice-help319
- ↑ https://www.paypal.com/en/webapps/mpp/paypal-fees
- ↑ https://www.paypal.com/us/selfhelp/article/what-should-i-do-if-my-account-is-locked-faq907
- ↑ https://www.paypal.com/us/selfhelp/article/why-was-my-payment-declined-troubleshooting-tips-faq3039
- ↑ https://www.paypal.com/us/selfhelp/article/i-forgot-my-password.-how-do-i-reset-it-faq1933
- ↑ https://www.paypal.com/us/selfhelp/article/how-do-i-change-my-password-and-security-questions-faq1440
- ↑ https://www.paypal.com/us/selfhelp/article/scams-on-craigslist-and-other-classifieds-websites-faq3022
- ↑ https://www.paypal.com/us/selfhelp/article/scams-on-craigslist-and-other-classifieds-websites-faq3022
About This Article
To get started with PayPal, first go to the website and click “Sign Up.” Select whether you want to make a personal or business account, then enter your personal information into the account creation pop-up box. If you want to transfer money between PayPal and a checking or savings account, navigate to your PayPal Wallet page, hit the “Link a Card or Bank” button, and enter your banking or credit card information. To learn how to make purchases, cancel payments, and receive money, read on!
Reader Success Stories
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"I didn't know anything about how PayPal works, and it takes me awhile to fully understand some things. However, this took me step by step and answered all my questions! Got it, thank you!"..." more