How to Setup a PayPal Account?
Paypal is one of the most widely used methods of making and receiving online payments. Having a Paypal account not only enables you to make purchases, you can also transfer and receive funds in a secure and quick manner. With Paypal, your money and your data is safe at all times.
While setting up a Paypal account is extremely easy, it’s still a payment processor. You will need to have more than just your name and email address handy. In this guide, you can learn how to set up your Paypal account and what you should keep in mind to avoid any complications later.
When setting up your Paypal account, keep your debit and your credit cards handy, along with your bank statement (for bank details). In some instances, you will even need an identification proof like your passport.
Different Types of Paypal Accounts
Setting up your Paypal account depends on what you are using it for. If you're going to use Paypal for online shopping and transferring/receiving money from your friends and family, you will need a Paypal personal account. Paypal Personal account is super easy to set up and is the ideal account for most users.
Paypal business is the other account and as the name suggests, it is specifically catered towards businesses. A business account enables you to sell products online and accept card payments, albeit with a fee! A business account also allows upto 200 employees to access the account. You can set permissions according to how much access you want to give them.
How to set up a Paypal account
While setting up both accounts is not vastly different, let’s begin with setting up the personal account, as it's much simpler than setting up the business account.
To set up your Paypal account, visit the Paypal Website and select the sign up option on the top right corner of your screen. It will then ask you to choose whether you’d like a Personal account or a Business account.
Once you select Personal, you will be asked to type in your name, email address, password and the country you live in. Once you click on continue, you will be asked for your nationality, your mailing address, phone number and anything else that may be required. Once you hit ‘Continue’, your account will technically be created. However, there’s still a few more steps to complete, before your account is set up and ready to use.
Now, you will have to link your debit and or your credit card. Click on the blue ‘Get Started’ button, fill out the form and select the ‘Add Card’ option. The last step to verify your account is to verify your email address. Paypal will send you a verification email. You will have to just click on the link to verify and authorize your email address with Paypal.
Once that is done, the next step is to verify the card on your Paypal account. All you need to do is log in to your account, click on the ‘Wallet’ icon and select the card you need to verify. After this, you will get a ‘Confirm Card’ link. Click ‘Ok’ and Paypal will charge your card with a really small amount to test if your card is properly set up. This amount will be refunded in a few days.
See also: PayPal Currency Conversion
The next step is to check the charge on your credit card statement. The charge will have a 4 digit verification code. Click on the ‘Wallet’ icon again and select the card you want to verify. This time, you will be prompted to enter a 4 digit code. Once you enter the code and hit ‘Confirm’, your card is verified and ready to use!
The process with bank accounts is the same. Paypal deposits a small amount of money on two instances and you have to enter these two amounts to verify your account. Exactly the same way as the credit card, the amounts are extremely small and are used for verification purposes only. You will notice these deposits are quickly refunded to Paypal after verification.
Setting up a Paypal Business account is not very different from setting up a Paypal personal account. Just the additional steps in this case would be that you’d be required to provide information about your business.
You would be asked to share the following information
- Type of organization
- Category & Sub-category
- When it was established
- Business URL
- Actual & Anticipated Revenue
You would also be required to share your tax details and registration. For example, for Indian Businesses, you cannot activate your account without providing your PAN and GST Details.
Once you set up your business account, you will be asked to choose from a solution.
Website Payment Standard (WPS) and Paypal Checkout are the two offered solutions if you are selling on your website. If you are doing business, where the transaction is not taking place on your website, you can use the following methods:
PayPal.Me - This allows you to create a customized link to request payment. This is ideal if you're working off site or on social media. Add the amount, pick the currency and send it to your clients to get paid quickly.
Online Invoicing - You can use Paypal to create invoices, customize them according to your business and send them out. This is the ideal for businesses that do not have a website and are looking for something that enables them to send invoices and track payments.
Email Payments - They also have Email Payments that allow you to send a payment request by email to your clients. This feature helps if you are conducting your business on email. Your customers will get an instant payment request. They can use their Paypal account or their debit/credit card to pay you.
See also: How to Receive Money on PayPal?