Setting up your PayPal account to receive payments

To receive money through PayPal, you need a PayPal account with a verified bank account or debit card attached. Start by going to paypal.com and clicking "Sign Up." Choose "Personal Account" unless you run a business — a personal account works fine for receiving refunds, reimbursements, or payments from friends and family.

After you create your account, PayPal will ask you to add a bank account or debit card. Click "Wallet" at the top of your account, then "Link a debit or credit card" or "Link your bank." You'll need your routing number and account number, which you can find on a check or by logging into your bank's website. PayPal will deposit two small amounts (usually under $1 each) into your account within a few days, then ask you to confirm those amounts to verify the account is yours.

Once your bank account is verified, money people send you will land there automatically. This usually takes one to three business days after the sender completes the payment.

Key Takeaways

  • You need a PayPal account with a verified bank account or debit card to receive money.
  • Verification involves PayPal depositing two small test amounts into your bank account, which you then confirm in your PayPal settings.
  • Money sent to you through PayPal transfers to your bank account within one to three business days.
  • If you're receiving a refund from a seller, the money goes back to your original payment method — usually your card or bank account.
  • You can also keep money in your PayPal balance and spend it directly through PayPal's debit card or online checkout.

How refunds reach your account

When a seller or service sends you a refund through PayPal, the money returns to the payment method you originally used. If you paid with a debit card, the refund goes back to that card. If you paid from your bank account, it goes back there. This happens automatically — you don't need to do anything.

Refunds typically take three to five business days to show up in your bank account or on your card, though some banks take longer. If you paid with a credit card, the refund may appear as a credit on your next statement rather than an when ready deposit. Check your bank's website or call them if a refund doesn't arrive within a week.

Receiving money from friends and family

When someone sends you money through PayPal's "Friends and Family" option, it arrives in your PayPal balance first. From there, you can transfer it to your bank account by clicking "Transfer Money" in your Wallet, selecting your bank account, and entering the amount. The transfer takes one to three business days.

You can also leave the money in your PayPal balance and use it to pay other people, make online purchases at stores that accept PayPal, or withdraw it using PayPal's debit card. There's no fee to receive money from friends and family, and no fee to transfer it to your bank account.

Understanding PayPal's payment holds and delays

Sometimes PayPal holds money you receive before releasing it to your bank account. This happens most often when you're a new seller, when the payment amount is unusually large, or when PayPal flags the transaction as potentially risky. A hold typically lasts 24 hours to 21 days, depending on the reason.

You can see if money is on hold by logging into your account and checking your "Recent Activity" or "Transactions." If a hold is in place, PayPal will show you the expected release date. You can request an earlier release by clicking the transaction and selecting "Release Funds," though PayPal may deny the request if it hasn't finished reviewing the payment.

If you're receiving a refund and it's taking longer than expected, check whether PayPal placed a hold on it. You can also contact PayPal's Resolution Center by logging in, clicking "Resolution Center," and selecting the transaction in question.

What to do if money doesn't arrive

If someone says they sent you money through PayPal but you don't see it, ask them to confirm they completed the payment. Have them check their "Recent Activity" to show you the transaction ID — a string of numbers that proves the payment went through. If they completed it, the money should appear in your account within three business days.

If three business days have passed and the money still hasn't arrived, log into your PayPal account and search for the transaction using the sender's name or the transaction ID. If you find it, click on it and check whether PayPal placed a hold or marked it as pending. If the transaction doesn't appear at all, the sender may have sent it to the wrong email address or account.

Ask the sender to double-check the email address they used. If they sent it to an address you don't use for PayPal, you won't receive it. They can cancel the payment and resend it to the correct address. If the money was sent to the right address and still hasn't arrived after a week, contact PayPal through the Resolution Center with the transaction ID and details of what happened.

Receiving payments as a business or freelancer

If you receive regular payments for work or sales, upgrade to a PayPal Business Account. Go to your account settings, click "Account Type," and select "Upgrade to Business." A business account lets you create invoices, set up recurring payments, and access better reporting tools.

With a business account, you can send invoices to clients through PayPal. Click "Tools," then "Create an Invoice," and fill in the amount, due date, and description of work. PayPal sends the invoice to the client's email, and when they pay, the money lands in your account. Business accounts charge a small fee (usually 2.2% plus $0.30 per transaction) when someone pays an invoice, but receiving money from friends and family remains free.

Keeping your PayPal account find

Protect your account by using a strong password — at least 12 characters with uppercase letters, numbers, and symbols. Enable two-factor authentication by going to "Settings," clicking "Security," and selecting "Two-Step Verification." PayPal will text you a code every time someone logs in from a new device, which prevents hackers from accessing your account even if they steal your password.

Never share your PayPal password or the codes PayPal texts you. If someone asks for your PayPal login information to "verify" your account or send you money, they're trying to scam you. PayPal employees never ask for passwords, and legitimate payments don't require you to share login details.

Frequently Asked Questions

How long does it take for money to show up in my bank account?

Money typically takes one to three business days to transfer from PayPal to your bank account. Weekends and holidays don't count as business days. If it's been longer than three business days, check your PayPal account to see if there's a hold on the transaction, or contact your bank to confirm the transfer arrived.

Can I receive money if I don't have a bank account?

You can create a PayPal account and receive money, but you'll need to add a debit card instead of a bank account. PayPal will verify the card the same way it verifies a bank account. Once verified, money sent to you will load onto your PayPal balance, which you can use to shop online or withdraw using PayPal's debit card.

What if the sender used the wrong email address?

If someone sent money to an email address you don't use for PayPal, you won't receive it. Ask the sender to cancel the payment through their PayPal account and resend it to the correct email address. They can do this by finding the transaction in their activity, clicking it, and selecting "Cancel Payment."

Does PayPal charge me to receive money?

Receiving money from friends and family is free, and transferring it to your bank account is free. If you're a business receiving invoice payments, PayPal charges 2.2% plus $0.30 per transaction. Refunds from sellers are also free to receive.

What should I do if I think someone sent me money by mistake?

Contact PayPal through the Resolution Center with details of the transaction. Explain that the payment was sent to you in error and that you'd like to return it. PayPal can help coordinate the refund. Don't spend money you believe was sent by mistake, as the sender may file a dispute and PayPal could reverse the transaction.