How to Set up a PayPal Account

Updated on August 4, 2017
Kiwisoutback profile image

As an eBay seller since 2005, we have some collective wisdom under our belts! We've shared some advice here. Hope it helps.


PayPal is a checkout feature that allows you to pay for items you purchased on eBay and other commerce websites using your linked bank account, credit card, or debit card. PayPal conceals your account or card numbers so that merchants, employees, and any other watching eyes cannot access your accounts.

PayPal can also allow you to send money to your friends, contractors, or other businesses. It allows secured financial transactions by encrypting your data. Paypal works well internationally, and is often used as a sort of alternative bank.

Founded in 1998, it is the most recognized form of online payment in the world.

Setting up an Account on

Personal Account for Online Shopping
Business Account
1. Click "sign up."
1. Click "sign up."
2. Click "personal account."
2. Click "business account."
3. Enter personal information. Choose your password, write it down, and keep it in a secure place.
3. Choose standard (free) or pro ($30/month for more features.)
4. Choose a security question.
4. Enter business information including address.
5. Enter your payment information, either your bank account or credit card number.
5. Choose password and security question.
6. Enter payment information (where funds paid to you will go.)

It is important that you confirm your address at the end of the process. This is a precaution that PayPal enforces to make sure you are who you say you are. It is also important that you confirm your shipping address. When moving to a new location, remember to change and confirm this address. To do this, log into your PayPal account, click "profile," then "street address." Change or confirm the address that is shown. To do this, simply click "profile" then click "street address." Make sure your credit card billing address is also correct.

Linking PayPal and eBay Accounts

To link your PayPal address to your eBay address book, log into your eBay account, follow these steps:

  1. Click the "addresses" link on the left side of the page.
  2. Click the "View all shipping addresses" link. Make sure you have linked your address book to your PayPal account. If you see an "add paypal address" button, your account is not linked. Click this button to link the two.
  3. Once this button is clicked, you will be able to select your registered PayPal credit card billing address as your shipping address. You can also choose to "make primary" to ensure all of your purchases will automatically be shipped to this address.

Is PayPal Safe?

If you are new to PayPal you may wonder why you shouldn't just use your credit cards or bank account information directly on shopping sites.

For online shoppers it is much safer to use PayPal. This is because a password is required to log into your PayPal account. Just typing the credit card or bank account numbers into a website is not safe. Also, the majority of merchants on eBay do not accept anything but PayPal for a number of reasons. First, it protects both the seller and the buyer through fraud prevention measures. While not every merchant accepts PayPal (Amazon, for example, because they offer a competing service called Amazon Payments), it is an easy payment option on established websites like Ebay, Zappos, BlueNile, and CafePress.

PayPal Poll

How often do you use PayPal?

See results

Beware of Phishing Scams

Phishing is when scammers try to lure you into logging into your PayPal account through an email sent to you directly. Most often, the word "PayPal" appears somewhere in the sender's email address or name. These messages often lead you to believe that your account has been compromised, that you need to enter your log in details as a security precaution, or something similar. The page will even have the official PayPal logo and look very official. Simply do not respond to these emails and never log into your PayPal account through an email. You can either delete these emails or report them to PayPal. Log into your own account through a browser if you have any doubts about your account.

Consequences of Paying With Other Online Options

Out of thousands of eBay transactions we have made, one of them was an unlucky fraud attempt. This seller did not accept PayPal and we were new to eBay at the time. The item was a counterfeit item that we didn't realize was not authentic. We purchased the item with a money order. Once we received the item, we realized that the item was a fake and contacted the seller. No response. A week goes by. A few emails later we received an indignant, nasty reply from the seller. They knew there was nothing we could do. eBay has no solid policy in place for money order transactions and cannot return your money. Yes, there are negotiation services you can use, but when the seller is resistant, you are helpless. If we had used PayPal for that transaction, we would have been saved. This is why it is of the utmost importance that you use PayPal for every eBay transaction. Avoid possible headaches!

Questions & Answers

    © 2008 Kiwisoutback

    Are you using PayPal?

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      • profile image

        anonymous 5 years ago

        I could not live with out paypal love it so much

      • Kiwisoutback profile image

        Kiwisoutback 5 years ago from Massachusetts

        @ravendreamwalker: Exactly. You can add additional emails in your settings.

      • profile image

        ravendreamwalker 5 years ago

        Stupid question: what is my PayPal email address? Is it the one I used to set up the PayPal account?

      • Ahdilarum profile image

        Ahdilarum 6 years ago

        Helped a lot in setting my paypal account. Thanks.

      • profile image

        DoubleUnder 6 years ago

        I love PayPal, I use it for all my credit card transactions. Credit Card machines are old news and many times require a 1 - 2 year contract. It is recognized around the world and they do a good job with their security features. Right now I am only talking about the free services. I recommend PayPal to all small business owners. Good Lens, Thanks.

      • hirephp lm profile image

        hirephp lm 6 years ago

        Paypal as a concept it is brilliant and always use it

      • profile image

        mylinkcenter 6 years ago

        I have 2 paypal accounts. Nice lens.

      • profile image

        FarrisFahad 6 years ago

        PayPal is the greatest checkout service provider :)

        great article ...

      • mihgasper profile image

        Miha Gasper 6 years ago from Ljubljana, Slovenia, EU

        I heard a lot about PayPal and thinking about opening my own. You provided some valuable info. Thanks!

      • studyaids profile image

        Steve Jones 6 years ago from Birmingham UK

        This is a very useful lens. I have PayPal on my website and have experienced no problems.

      • GonnaFly profile image

        Jeanette 6 years ago from Australia

        A very handy lens for those thinking about setting a paypal account.

      • profile image

        yesperu 6 years ago

        Paypal as a concept it is brilliant and always use it, until now I have been using paypal for 2 years already.

      • joeldgreat profile image

        joeldgreat 6 years ago

        very useful information. nice to know people are sharing their ideas and experience over the use of paypal.

      • sidther lm profile image

        sidther lm 6 years ago

        I do have a paypal account! I just opened it when I started on Squidoo and I wish I had found this lens before I did that! Thank you for sharing these great tips.

      • profile image

        ideadesigns 6 years ago

        Paypal is a great program. Thanks for the info!

      • RhondaAlbom profile image

        Rhonda Albom 6 years ago from New Zealand

        Such great information. Blessed.

      • seeker2011 lm profile image

        seeker2011 lm 6 years ago

        good information, thank you for this lense.

      • profile image

        inflexi 6 years ago

        Thanks a lot kiwisouthback for such nice and informative tips about ply pal setup. Though i am using Pay Pal since long time, i am ignore about some features of it. Now onwards i am trying to use your tips.

      • sahilwaste profile image

        sahilwaste 6 years ago

        A piece of good information... very helpful.. thank you..

      • TIRMassageStone1 profile image

        TIRMassageStone1 6 years ago

        Good advice for the beginner.

      • BruceBair profile image

        BruceBair 6 years ago

        even if you have a bank account and do not do any biz online, Paypal offers benefits like moneymarket accounts, high daily limits on charges and atm withdrawls etc... It is worth it to look at this as an online addition. For instance you can take a pic of a check, create a deposit and Papal will do it without you having to send them the paper. Just get the paypal app for iPhone or Android and an appropriate Paypal account of course.

      • profile image

        nuntana 6 years ago

        thank you.

      • profile image

        anonymous 6 years ago

        If a business owner is considering using paypal, they would be smart to first look into a traditional merchant account. While paypal has a much lower overhead and upfront costs, business owners that are preparing to do more than approximately $400 per month are almost always going to save significant money by using a merchant account. In addition small business owners have far more protections against things like chargebacks with a merchant account rather than paypal.

      • TolovajWordsmith profile image

        Tolovaj Publishing House 6 years ago from Ljubljana

        Thanks, this lens goes tomy favs:)

      • profile image

        anonymous 6 years ago

        Thank you for this information on paypal. Exactly what I was looking for!

      • profile image

        Duggy89 6 years ago

        @anonymous: is it really safe to use paypal, i'm trying to buy something off and it won't let me use my mastercard unless i use PayPal

      • profile image

        karitina 6 years ago

        Can you explain to me how to set up my paypal button on squidoo? PLEASE!!!!!

      • profile image

        meekle69 6 years ago

        thank you so much for clearing up my questions.

        if you guys would like to make decent money online, check out my lens!!

      • mattseefood lm profile image

        mattseefood lm 7 years ago

        Thank you for this! Will i still get money even if I only linked my debit (not credit) card?

      • magento-templates profile image

        magento-templates 7 years ago

        Good info for start! Nowadays, you need to go through few more steps to start selling products online with PayPal if you decide to open your online store.

      • mahimattphoto profile image

        mahimattphoto 7 years ago

        This lens just made my day!!! I get asked this at least once a week! I will be sharing this with others!

      • RetroMom profile image

        RetroMom 7 years ago

        Excellent information for someone wanting to start a Paypal account.

      • profile image

        anonymous 7 years ago

        I've been using PayPal for less than six months, but so far I have been very impressed with its performance. Definitely recommended.

      • Sylvestermouse profile image

        Cynthia Sylvestermouse 7 years ago from United States

        Adding a kiss for luck on this St. Patrick's Day!

      • UKGhostwriter profile image

        UKGhostwriter 7 years ago

        very useful lens!

      • shoumo lm profile image

        shoumo lm 7 years ago

        The last time I checked, the country information in your profile can not be changed. So if there is a possibility pf relocation choose your email accounts linked to the Paypal account carefully. I recently canceled my Paypal account and the balance - a few cents in my case - was allocated to a charity fund.

      • Countryluthier profile image

        E L Seaton 7 years ago from Virginia

        Paypal is great. I have paid for eBay stuff and lots of other things for years. What a concept, shame I can't lay claim to coming up with it. At least I can profit from it.

      • profile image

        jannyjohnn 7 years ago

        Paypal is probably the best online money trader system there is. Everyone should have one.

      • MargoPArrowsmith profile image

        MargoPArrowsmith 7 years ago

        This should have been so easy, but I sure could have used your guidance. BTW, I don't use it, too vender unfriendly

      • dogodor profile image

        dogodor 7 years ago

        @rajaumminadrah: no. You have to pay for premium account like Paypro Flow.

      • photofk3 profile image

        photofk3 7 years ago

        Useful info. Thanks. I don't have a PayPal account yet but if I decide to open one, I will definitely visit this lens.

      • pjbells profile image

        pjbells 7 years ago

        Well written lens, I now have a pay pal account after trying to avoid it for years.

      • profile image

        rajaumminadrah 7 years ago

        Hey, very useful lens there! Just a question though: are premium accounts free too?

      • profile image

        wecomparebooks 7 years ago

        i've a paypal account. do you've any idea about moneybookers. I am thinking of setting up a moneybookers account. is this a right decision. please suggest.

      • profile image

        anonymous 7 years ago

        wow thanks for all the helpful info!

      • fbaum818 profile image

        fbaum818 7 years ago

        Good lens! PayPal is a very important part of Squidoo life. I'm glad someone put together a lens to educate people about it.

      • JenniferAkers LM profile image

        JenniferAkers LM 7 years ago

        I agree with Bobby: it's interesting to see more than half of your visitors don't have a Paypal acct. Great how-to lens!

      • profile image

        anonymous 7 years ago

        That's an interesting poll. 58% of your readers don't have a paypal account. Easy to forget that not everyone is shopping online. I can see huge online growth to come. Great lens!

      • profile image

        Godnose 7 years ago

        Paypal is brilliant. I have relatives abroad and it's the easiest way to sent and receive money with them. You just fill in the form at Paypal and give the email address of then person you want to send the money to, and whether in Sterling or the local currency, and it all happens automatically.

      • VivianAldana LM profile image

        VivianAldana LM 7 years ago

        I have used PayPal to send money and receive money. It is a great tool. I have even used it to help a friend receive money when they had not yet established a bank account! It's a great way to save your Squidoo cash and keep it for a rainy day!

      • rayban malaysia profile image

        rayban malaysia 7 years ago

        Thanks for the tips, I heard that people can use fake card also, is that true?

        But so far i haven't face any problem yet, i have been using paypal for 1 and half yea already.

      • teamlane profile image

        teamlane 7 years ago

        A most excellent lens Kiwi! I'm here because we need to set up a PayPal account and knew someone in Squidoo would have the answers!

        ~ Colleen :)

      • profile image

        DachaiC 7 years ago

        Nice work explaining this process! Some people are just intimidated by setting up something like this and you've broken it down with worthwhile information to boot. I am adding this to favorites as some of my audience could use this advice. Cheers!

      • profile image

        anonymous 7 years ago

        Very helpful len..thanks

      • Louis Wery profile image

        Louis Wery 7 years ago from Sarasota, Florida USA

        Very good basic information about PayPal and very reassuring!

      • george185 lm profile image

        george185 lm 7 years ago

        Great lens. Paypal has become integral for doing almost anything online. Whether that is buying stuff or getting paid from your favorite writing site:)

      • gokhalehp profile image

        Hemant 7 years ago from Dubai

        Hi. Great lense. Very useful information. I am using PayPal for a long time.

      • darciefrench lm profile image

        darciefrench lm 7 years ago

        Gotta have a PayPal account! Excellent and informative lens on paypal. Angel blessed and featured on Squidoo Tips Blessings.

      • profile image

        leasefunders 7 years ago

        Yes, I am using PayPal most especially for shopping because it is more safer than to use credit cards. Well done lens! :)

      • profile image

        Jlava73 7 years ago

        Excellent Article! I know a lot of people who don't use paypal because they don't know how.

      • profile image

        KDimmick 7 years ago

        Great lens!

      • profile image

        jogreen1968 7 years ago

        Paypal is brilliant, although I have read a lot more recently that they are having problems with fraud. As a concept it is brilliant and I still use it all the time.

      • SandyMertens profile image

        Sandy Mertens 7 years ago from Frozen Tundra

        Good information for those not sure how to set up a PayPal acccount.

      • gypsyman27 lm profile image

        gypsyman27 lm 7 years ago

        Squidoo has made me realize how important it was to have a paypal account, they pay royalties directly into my paypal account!

      • ICanCook profile image

        ICanCook 7 years ago

        Who would have thought to make a lens like this. I thought PayPal was pretty intuitive, but now I see that there are lots of people needing this info. Great Content. Good Job!

      • profile image

        sammy9212 7 years ago

        i use my paypal for everything! its sooo much easier.

      • AdultAcneSystem profile image

        AdultAcneSystem 7 years ago

        Thank you, I need to start using paypal more often and in my day to day business operation, thank you.

      • darthma9e profile image

        darthma9e 7 years ago

        Helpful tips, thank you

      • profile image

        gnomee 7 years ago

        Thank you for this usefull info!

      • profile image

        anonymous 7 years ago

        Very nicely done...Informative article & it explains how to set it up very simply....& I love paypal also so don't gotta make a believer out of

      • PeterBivolarsky1 profile image

        PeterBivolarsky1 7 years ago

        Very helpful info, thanks!

      • jctatum profile image

        jctatum 7 years ago

        I love paypal! My girlfriends and I go on an annual trip together each year. We use paypal to save up for it. Each month we each send a few dollars to our paypal account we have linked to a special bank account. When it's time for our trip it's almost completely paid for! Makes it so easy to all chip in for the cost. We get statements from paypal on balances and everything!

      • profile image

        invesible_8704 7 years ago

        This is good information, its worth to read it.

      • profile image

        coffeehut 7 years ago

        I'm shocked at the poll results. I thought for sure just about everyone was using paypal by now.

      • ZablonMukuba profile image

        ZablonMukuba 7 years ago

        thanks for the lens on paypal. i have a question if you set up a paypal account without linking it to a bank account could you still receive payments via credit card?

      • profile image

        termit_bronx 7 years ago

        Great information. Like and fav.! Thank you, this is what I have been looking for.

      • profile image

        anonymous 7 years ago

        A very systematic way to setup Paypal is given here.

      • missbat profile image

        missbat 7 years ago

        Thank you for explaining this so well! Next time I have a client that needs to set up Paypal, I am sending them to this lens!

      • profile image

        paoloit 7 years ago

        Does it matter if I'm a company or Privet person?

      • lizskincare profile image

        lizskincare 7 years ago

        great lens!!!

      • Yourshowman LM profile image

        Yourshowman LM 7 years ago

        Good Information

      • lankanwriter profile image

        lankanwriter 7 years ago

        Unfortunately in Sri Lanka PayPal is send only, so I have to find alternative ways to receive money :-(

      • RecipeSquid profile image

        RecipeSquid 7 years ago

        very well laid out lens. If it weren't for would we all get our royalties :)

      • girlfriendfactory profile image

        girlfriendfactory 7 years ago

        Very nice and simple for the beginners. So often how-to type items are not written for people who don't know what to do, but for people who basically do. I like that you included the phishing information because that throws a ton of people off. You might tell them to forward them to Paypal by using spoof @ which they tell me helps them and I stopped getting them years ago after I started reporting them. The other thing they told me is that if PayPal sends you anything, they always use the full name you have on the account, the phishing emails are typically addressed to Dear PayPal Customer (a good reason to use a middle initial when you set up your account because even spammers who have your name would probably not use that).

        You did a great job ~ thumbs up from me! :)

      • ssuthep profile image

        ssuthep 7 years ago

        Very good information. This will help new users correctly setup their PayPal account.

      • Sami4u LM profile image

        Sami4u LM 7 years ago


        Yes, I do most of my work online and paypal make that happen. Easiest way to move money that you can have. Plus I buy a lot :D

      • Virginia Allain profile image

        Virginia Allain 7 years ago from Central Florida

        I mostly use Paypal to accept my freelance writing payments into. It is the only way some sites pay their writers.

      • profile image

        RebeccaE 7 years ago

        another execellent lens, great work, and very informative.

      • PromptWriter profile image

        Moe Wood 7 years ago from Eastern Ontario

        This is an excellent how-to. It amazes me how many people still don't know how to use paypal.

      • profile image

        04dyland 7 years ago

        thanks man....

      • profile image

        DanSuciu 7 years ago

        Thanx for creating this great lens and educating the people on how paypal works, and the benefits of having one. I believe that everyone should have a paypal account. Increase Your Sales

      • profile image

        jackrabbitcom 7 years ago

        Good information in this lens. PayPal also offers some pretty feature-rich merchant services for accepting credit cards, etc. Overall, a very valuable company for buyers and sellers alike.

      • profile image

        infodrivenew 7 years ago

        Very nice information on Pay Pal. Thanks..

      • profile image

        marahcreative 7 years ago

        It brings me great joy when someone lays out step-by-step instructions and makes something that can seem daunting (i.e. setting up a Pay Pal account) become understandable. Very helpful, thanks for sharing!

      • profile image

        employeeInsurance 7 years ago

        Paypal is a brilliant business, really useful lens for those looking to set up a new account.

      • profile image

        seo__guru 7 years ago

        I have a paypal account but not yet verified, thanks for this useful information

      • profile image

        enriquep94 7 years ago

        I have a paypal account but don't use it much. but the few time i had used it has work good. thanks for the info. Excellent lens!

      • profile image

        Saltox╦̵̵͇̿̿̿̿╤── 7 years ago

        nice and very helpfull

      • profile image

        Sally782 7 years ago

        I have a paypal account how do I add it to my lens

      • profile image

        vargaspinups 7 years ago

        This is exactly what I needed to show my aunt, to set up PayPal. She wanted me to do it for her - but your guide is simple and clear. Thanks!