To accept PayPal money, you need a PayPal account with a confirmed email address. When someone sends a payment to your email or mobile number, PayPal notifies you, and the funds appear in your account once you accept them. The process takes just a few minutes to set up if you’re starting from scratch, and there are several ways people can send you money depending on the situation.
Setting Up Your Account to Receive Money
If you don’t already have a PayPal account, sign up at paypal.com or through the mobile app using your email address. The single most important step is confirming that email address, because PayPal won’t let you accept incoming payments until you do. Check your inbox for a verification email and click the confirmation link.
All new PayPal accounts start with sending and withdrawal limits. To lift those limits, you’ll need to get verified by adding a payment method such as a bank account, debit card, or credit card. Linking a bank account is especially important because it gives you a way to transfer your received funds out of PayPal and into your bank. You can add a bank account by going to your Wallet section and entering your routing and account numbers.
Ways People Can Send You Money
The simplest method is giving the sender your PayPal email address or the mobile number tied to your account. They enter it on their end, choose an amount, and send. You’ll get a notification that money is available.
PayPal.Me links offer a cleaner option. Your PayPal.Me link is a short URL (paypal.me/yourname) that you can share via text, email, or social media. When someone clicks it, they’re taken directly to a payment screen with your account pre-filled. You can set up your PayPal.Me link in your account settings.
PayPal also supports QR codes for in-person payments. You can pull up your personal QR code in the PayPal app, and the person paying you scans it with their phone. This works well for splitting bills, paying for items at a yard sale, or any face-to-face transaction where typing an email feels clunky.
Friends and Family vs. Goods and Services
PayPal treats personal payments differently from commercial ones, and the distinction matters because it affects what you pay in fees.
Friends and Family payments (called personal transactions) are free to receive when no currency conversion is involved. The sender also pays nothing if they fund the payment from their PayPal balance or a linked bank account. If the sender uses a credit or debit card, they’ll pay 2.90% plus $0.30, but that cost stays on their side.
Goods and Services payments (commercial transactions) are for selling products or services. These carry a fee for the recipient, which PayPal deducts automatically from the payment before it hits your balance. The specific rate depends on your account type and transaction volume, and you can find the current schedule on PayPal’s merchant fees page. The tradeoff is that Goods and Services transactions come with PayPal’s Purchase Protection program, which gives buyers the ability to dispute charges. If someone is buying something from you, this is the appropriate payment type.
When Payments Are Put on Hold
If you’re newer to selling on PayPal or you receive a payment that looks unusual compared to your normal activity, PayPal may place a temporary hold on the funds. This means the money shows up in your account but you can’t spend or withdraw it right away.
You can speed up the release by taking a few specific steps. For physical items, add tracking information from an approved shipping carrier. PayPal will release the hold roughly 24 hours after the carrier confirms delivery. You can also print shipping labels directly through PayPal, which automatically links the tracking. For services or digital goods like e-books or online lessons, go to your Activity page, find the transaction, and mark the order status as “Completed.” PayPal will release the hold seven days after you update that status.
In unusual cases, such as a sudden spike in your selling volume, PayPal may hold funds for up to 21 days even after you’ve taken these steps. Building a consistent transaction history over time reduces the likelihood of future holds.
Moving Money Out of PayPal
Once funds are available in your PayPal balance, you have several options for accessing them.
- Standard bank transfer: Free, and typically arrives in one to three business days. Transfers to eligible debit cards take about 48 hours. Weekends and holidays add at least one extra business day.
- Instant transfer: Moves money to your bank or debit card within minutes, though your bank’s processing can stretch that to 30 minutes. This option carries a small fee.
- PayPal Debit Card: Lets you spend directly from your PayPal balance at stores or withdraw cash at ATMs, with a daily ATM limit of $400.
- Check: PayPal can mail you a physical check, which typically arrives in 5 to 10 business days. The minimum amount is $1.51, and a fee may apply for personal accounts without a linked PayPal Balance account.
For most people, the standard bank transfer is the best default since it costs nothing. If you need the money immediately, instant transfer is worth the small fee. To initiate either one, go to your PayPal Wallet, click “Transfer Money,” and follow the prompts to choose your linked bank account or card.