How To Set Up A PayPal Account To Receive Money From Anyone

Ryan Dube 30-01-2013

how to set up a paypal accountFor years now, PayPal has solidified itself as the payment system of choice for anyone doing business on the Internet.  When people first started doing business over the Internet, you would have thought that some sort of convenient credit-card payment system would have been the system of choice. However, the collective greediness of the major credit card processors created a gap online, where businesses without a lot of available cash flow needed an inexpensive way to offer potential online customers with a fast and convenient way to pay for things online.


The Ebay craze really fueled this. The need for a cheap and convenient payment system was fed by the millions of transactions taking place on Ebay, where most sellers had very little expendable cash to pay for a credit card payment system, and most buyers only had a bank account and credit cards to pay with – and most were very wary of typing in their credit card information over the Internet, with so many cases of credit card numbers getting hacked How Credit Card Fraud Works and How to Stay Safe Credit cards and gift cards are regularly stolen. How do thieves get your card? How can you keep safe from credit card fraud? Read More on the Internet.

Enter PayPal, a system where both buyer and seller simply set up a safe and secure account How To Keep Your Paypal Account Safe From Hackers Read More that can be fed with funds from a bank account, and where the only thing required for monetary transactions on the Internet is an email address. This middle-man of financial transactions was the perfect solution, providing sellers with one of the easiest ways to accept payments on the Internet, and with sellers a “safe-zone” of transactions where they could simply use their email address to make a purchase, and leave the credit card numbers safely tucked away.

With the growth of PayPal, came a greater number of methods sellers can  use to accept payments online. Not too long ago, Tim discussed how businesses can make use of PayPal How To Set Up A PayPal Account For Your Business If you run a small business or are thinking of taking the plunge into self-employment then there’s a good chance you will need a quick and easy method of invoicing and charging your customers or... Read More , but in this article, I’d like to take that a step further and show you all of the different ways that you can actually accept payments from people.

How to Set Up a Paypal Account for Receiving Payments

Sending payments using PayPal is easy, and you can even send out mass payments now How to Use PayPal's Mass Payment Feature to Save Money Read More . For years, the most common way to receive payments on PayPal (in fact it’s still the most common way) is simply to request a payment from someone. Usually, this won’t be required if you’re using a system like Ebay, where the request for payment is an automated part of the process, and where buyers usually just pay for the products immediately upon winning the auction.

Requesting Payments

However, if you’re working for clients or you have a friend that owes you some money, you can quickly send them a request, which will issue an email from PayPal asking them to submit payment immediately, and providing a convenient link where they can send you the dough with just a few clicks.

how to set up a paypal account

The request process gives you a chance to type a quick note that will also be a part of that reminder email. This is one of the fastest and most convenient ways to get payments from someone via PayPal.

how do i set up a paypal account

Of course, if you run a business or a contracting service, issuing simple requests like this isn’t very professional. If you’re going to be expecting payments from the same clients every month, it’s much more professional to issue monthly invoices, and PayPal can  help you there as well.

Under the “Request Money” tab, just click on the “Create Invoice” link, and you’ll have the option to issue invoice details, including how many days you’ll allow the client to take to send in payment, an itemized list, and even an automated invoice number for your records. There are even several invoice templates available for you to choose from.

how do i set up a paypal account

These are the two most common ways to receive money from people, and these methods have been available in some form or another since PayPal was founded. However, these days, PayPal provides many more options for you to offer your customers and clients for sending you the money that you’re owed.

Setting Up Recurring Payments and Other Payment Options

One feature I’ve always liked once PayPal started offering it was the ability to place a payment button right on your website. I described how to do this when I wrote about offering online tech support with LiveZilla How Earn Money By Selling Online PC Support using LiveZilla Read More .

One thing I just noticed is now available in addition to just offering a “Buy Now” button is that PayPal now offers a list of buttons you can use, including subscriptions, automatic billing (very nice for website or newsletter subscriptions), or even an installment plan for large purchases.

how do i set up a paypal account

I love the ability to allow clients or readers to set up a subscription right from a button on your site. This is sure to increase conversion rates, since making the purchase process streamlined and easy always encourages people to move forward with the transaction.

Depending which type of button you choose to embed on your site, the options that are available in the PayPal wizard will change to be applicable to that button type.

how to set up paypal account

You can even have PayPal send your customers to customized pages on your own site either after the payment is completed (to thank them and help them continue to other parts of your website), or if they cancel (to encourage them to proceed with the purchase).

how to set up paypal account

Installing the button is wicked easy, and it doesn’t take any expert level programming skill. At the end of the PayPal button-creation wizard, you’ll be provided a form code that you can embed on any page of your site where you want to place the button.

how to set up paypal account

Here’s what the newsletter subscription button looks like once it was embedded on my own blog. What’s cool is that it gives the customers the option to use credit cards rather than their PayPal account if that’s the option they choose – because PayPal accepts credit cards as part of its payment options.

How To Set Up A PayPal Account To Receive Money From Anyone Paypal8

The latest innovative way that PayPal now offers to accept payments from people is the ultra cool “PayPal Here” app that’s now available for iPhone or Android. All you have to do on PayPal is select this option under Merchant Services, and type your mobile number in the field to get a text message with the link to install the “PayPal Here” app.

how to set up a paypal account

This app, believe it or not, will let you accept credit card payments to your PayPal account with nothing more than your iPhone or Android, and a little credit card reader device that PayPal will send you for free once you sign up for the service. Unlike other payment systems small businesses have to use, this service requires absolutely no monthly service fee. You simply pay the per-transaction service charge of 2.7 to 3.5 percent (slightly higher in some countries), and you’re good to go.  If I had a small business and wanted to keep my overhead costs down, but still offer customers the convenience of credit cards, this is definitely the way I would go, no doubt about it.

So those are all of the many ways how to set up a Paypal account to receive payments from just about anyone, anywhere in the world. All you have to do is figure out exactly how you intend to conduct your business, and then choose the solution that’s right for you.

Have you ever used any of PayPal’s services to receive payments? Which methods do you prefer? Share your thoughts and experiences in the comments section below!

Image Credit: Male Using Credit Cards via ShutterStock

Explore more about: Business Technology, PayPal.

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  1. karthick
    August 18, 2017 at 11:02 am

    hi sir mam
    I need paypal purse number and account number

  2. Farhad Kunto
    February 24, 2017 at 1:32 am

    I live in a country where PayPal isn't supported. Do you think getting a USA PayPal from Auction Essistance would be safe to do? I don't have a bank withdraw money, so I plan to do currency exchange or have my friend cash out for me.

  3. vijeta verma
    October 3, 2016 at 4:32 am

    I am Indian. I want to know that is it essential to have cash in my account for creating PayPal account.

  4. larhonda kaye lewis
    September 19, 2016 at 5:11 pm

    If I don't need a debit card then why are they asking for card info b4 I can go any further? I have a bank account but I don't wanna use it for this. I rather get another debit card. Don't feel Sade using my account

  5. Nuzzo
    May 7, 2016 at 6:56 pm

    Would it be a good idea to get a PayPal account from Auction Essistance?

  6. Billy Slais
    April 9, 2016 at 2:06 am

    I am in dire need of a small amount of money my friend sent to me from S. Calif. I don't have a PayPal account.....I don't have a bank account..... How do I access this 175.00 that he sent me in an emergency situation...?

  7. rupali
    April 17, 2015 at 6:53 am

    plz help me i can not recive payment in my paypal account

  8. Sisira
    March 18, 2015 at 10:38 am

    I am a Sri Lankan. Was trying to open a Paypal account, to enable me to receive my earnings on ad clicks in web sites. Unfortunately I am unable to complete the registration, as it does not contain provinces of sri lanka and all codes are american. could you please help me in this issue and advise me as to how I could hae this account? thank you and regads !

  9. sheetal
    March 16, 2015 at 7:40 am

    i am from india and i generally use paypal to buy online.i have a little query.i am venturing into retailing and planning to be a reseller.i wish to know if my buyers can use paypal to pay for my goods as i do not own a website or a payment gateway.kindly reply asap.thank you and regards!

  10. MIMI
    March 12, 2015 at 12:58 pm

    does pay pal work in Ethiopia?????? and is there any payment for opening pay pal account please tell me

  11. Lucy Steffey
    February 22, 2015 at 5:56 am

    Hello, I've used Paypal for quite awhile now, & never ran into the issue that I've emailed & called into Paypal numerous times in the past few days about. That being Receiving Payment from a Buyer (Well 2) that I've Invoiced, & when they pay there invoice instead of Funds going directly into my acct. Like they always have, when I open my PayPal under there payments r the options Claim Funds/Deny Funds, when I attempt to Claim Funds it pops up that where I'm not Verified because I don't have a Bank acct. to link to my PayPal I can't accept payment this way, Although there r alternative payment methods, But they're not listed. & As i said calling Pp Rep. sent me an email that he instructed me to forward to my clients & it would explain how for them to make payment. I sent email (even though it must looked to me to be the normal way one pays an invoice. 1 Mama tried using instructions, But it still came thru I had to claim. I've emailed Pp again yest., but haven't received response yet. As I am a Mother of 4 selling my children's gently used mange brand clothes is how I turn around & dubbed good deals online to buy them more. I'm not a Boutique/store Owner or have a Great Job to where i could afford these things otherwise. And I feel lucky after a week these ladies haven't changed there minds about the items because of the delay. As I said I love the device Pp provides, I only wish someone would advise me on how to fix this problem so I can begin receiving payments again. I don't understand why this information is so hard to get? Please help. Thanks

  12. baneza damasco
    April 26, 2013 at 12:15 am

    can u direct me to the exact page to recived money from a friend over seas ??

    • Ryan Dube
      April 26, 2013 at 12:37 am

      I'm not sure what you're asking -- you just use Paypal as normal, and if senders or receivers are from a different country, the currency will show up differently and Paypal will convert automatically based on current rates.

      • Lance Guddeck
        July 23, 2013 at 8:54 pm

        Ok I want to receive money via PayPal. How exactly do I begin?

        • Ryan
          July 23, 2013 at 11:21 pm

          Create an email address, and sign up for a Paypal account with it. People send you money by using the email account you sign up with.

  13. Keith Swartz
    March 26, 2013 at 5:50 am

    This is a NEED TO READ ARTICLE! Thanks Ryan & MUO!

  14. Anonymous
    January 31, 2013 at 5:25 pm

    Thanks for the info. Ryan Dube. I use it to buy. I am working on a web site.

  15. Poch P
    January 31, 2013 at 1:11 pm

    I like the Money Request because you don't have to use a bank account and it's fast. Used it twice.

  16. SaapeXD MoHods
    January 31, 2013 at 8:33 am

    Do you have to add credit card to use paypal? XD

    • Rubis Song
      January 31, 2013 at 1:08 pm

      Yes, off course :)

      • Mark Alsisto
        January 31, 2013 at 1:54 pm

        no, you don't. I've been using paypal to purchase online funds for games, and i don't even have credit card. You only need to verify the bank that you linked with paypal.

        • Rubis Song
          January 31, 2013 at 2:40 pm

          That's very interesting. I couldn't open mine without providing my credit card. Thanks for the tip.

        • Daniel Escasa
          February 1, 2013 at 5:21 pm

          I think it may depend on whether your bank can "talk" to PayPal. I've linked PayPal with my bank account, albeit through a debit card.

        • SaapeXD MoHods
          January 31, 2013 at 2:48 pm

          So u can use it without loading any cards eh? Just have to receive payments right? But I think there is a limit on how much bucks you can send if u havent added a card! ($100 , I think )!

  17. André Kamara
    January 31, 2013 at 1:07 am

    PayPal is indeed helpful, but has so many strange policies. For example, I don't live in the US so I can only use Paypal to buy things (on Ebay for example). I can't receive money. And as Paypal is owned by Ebay (unless it's the oposite) you can't send someone an Ebay gift card unless they have a Paypal verified account. For all these reasons I'd rather use Skrill which supports most countries and offer interesting services like a Skrill MasterCard (linked to your Skrill account). They also let their users who live outside the US order products on American websites which deliver only on the US territory. They provide you a virtual american address for that. Unfortunatey these two features are available only to EU citizens.

    • Ryan Dube
      January 31, 2013 at 1:35 am

      Interesting! We'll have to take a closer look at Skrill to see if it's a service we may want to review. The virtual address feature is fascinating.

  18. Taivins
    January 30, 2013 at 11:33 pm

    The Square card reader is another good tool that functions exactly the same as the PayPal card reader (in fact, it came first and PayPal copied it exactly). I have been using Square for over a year and have had no problems.

    • Ryan Dube
      January 31, 2013 at 1:34 am

      Cool - thanks for the heads up Taivins - that's good to know. I didn't realize that Square came first.

  19. Meena Bassem
    January 30, 2013 at 10:48 pm

    ok, it's made to receive money and it works ok, but how can i use it to pay something , maybe buy something or pay for an online service,it doesn't work outside US or canada, i think. is there any possible way to use the money in the account to pay for something else before verifying?

    • Ryan Dube
      January 31, 2013 at 1:32 am

      Funny you should ask - stay tuned for an upcoming article next week about setting up your paypal account to send anyone money from anywhere. :-)

      • Meena Bassem
        January 31, 2013 at 10:33 am

        so, will it be possible to send even if the account is not verified?i live outside US and canada.and i can't verify got something for that?

        • Pianex Sobude
          January 31, 2013 at 4:54 pm

          Yes, you can send even if you're account is not yet verified. And you can verify your account by adding your bank account or if you own and Visa or Mastercard debit/credit cards.

    • Pianex Sobude
      January 31, 2013 at 4:49 pm

      Usually online stores have Paypal button which you can click to pay the items you bought using your Paypal funds. It will ask you log-in to your Paypal account.

      To send money to anyone, just ask for their Paypal user id which is the email address they are using to log-in in Paypal. Go to your Paypal account and look for "send payment" and just fill-up the needed info in the page.

      • Meena Bassem
        January 31, 2013 at 10:06 pm

        tried that before to buy something from a website,or sign up for an account, don't remember exactly, but it asked to verify the account before i could send.