Do You Need a Bank Account for PayPal? [to Receive, Send, Withdraw]

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  • Post last modified:July 11, 2021

PayPal is one of the main online payment processors. But if you don’t have a bank account, can you still use PayPal? Do you need a bank account for PayPal?

You do not need a bank account for PayPal. You can send and receive money on PayPal without a bank account. Moreover, you can also withdraw money in the form of a check. The benefit of having a bank account is you can withdraw money from PayPal faster – directly to your bank.

Read on to learn more about how PayPal works with and without a bank account.

Do You Need a Bank Account for PayPal?

do you need a bank account for paypal

You do not necessarily need to link a bank account to your PayPal account. You can still send and receive payments this way. However, if you want to transfer or withdraw funds from your PayPal account, then it is where having a bank account is necessary.

The only thing that you will need to use PayPal is an account with the company. You only need to sign up, which is completely free. After that, you can use the site to send and receive payments. However, without a bank account linked to it, you can only access a part of what the company can do for you.

Another question that you may want to answer is, do you need a bank account for PayPal to receive money? Note that the biggest thing you can’t do, at least conveniently, is to withdraw funds from your PayPal then transfer it instantly to your bank account if you were not able to link them.

Still, you can send and receive payments from other PayPal users. This means that you can still access most of the basic functions of the platform.

Is It Not Possible to Get Your Money Without a Bank Account?

You can still get your money from your PayPal account even if you do not have a linked bank account. PayPal is not legally able to prevent you from acquiring the funds sent to your account. Remember that it is still your money, albeit in digital form.

One method to withdraw your accounts without using a bank account is to request a check. Go to your Accounts tab, then go to Withdraw. After that, click on Request Check.

Fill up the spaces with your correct information, and then click on OK. Take note that PayPal will deduct $1.50 from your account as a convenience charge, ensuring that you have enough money on your account.

Wait for your check to arrive in the mail within 5-10 business days. Yes, it will take a rather long time before you receive your check. Also, you still need to go to your bank to cash in or deposit it into your bank account. If you miss the deadline for check clearing, you will need to wait until the next day for your check to clear.

Is There a Faster Way for You to Get Your Money from PayPal?

If you cannot wait up to 10 business days for your money, then there is another way, and that is to go to Walmart. PayPal and Walmart became partners in 2018, which means you can withdraw your funds just by going to your local branch.

The only thing that you have to do is to open your PayPal app. Sign in and tap on the More section. Once you are in, tap on ‘Get Cash’ and then input the amount of money you will be withdrawing from your account. After that, tap on Generate Code.

Take note that PayPal/Walmart will deduct $3 from your withdrawal amount as a convenience fee. This means that if you’re planning on withdrawing $50, you will be receiving $47 from Walmart.

Once you get your code, show it to the cashier in any Walmart Money Center or Service Desk, and they will hand over your money.

Why Do Some People Not Want to Link Paypal Account to Their Bank Account?

do you need a bank account for paypal to receive money

Why would you not want to link your bank account to your PayPal account? Would it not be more convenient if you do?

Some people do not trust that PayPal will protect their personal and bank information from hackers. Bigger companies’ databases have been breached in the past, and there is a small possibility that it could also happen to PayPal. For these people, it does not matter if they get a bit inconvenienced. Their peace of mind is more important.

On the other hand, some people do not link their bank accounts, not because they do not want to but because they cannot. Like India, PayPal doesn’t have a banking license, so they cannot transfer and request money from local banks.

Reasons Why You Should Link Your Bank Account to Your PayPal Account

You may have your own valid reasons for not wanting to link your bank account with PayPal, but there are also plenty of reasons why you should. Among them are the following:

1. Safe and Secure

Note that linking your bank account to your PayPal account is free, and most importantly, safe and secure. Your bank details are confidential with PayPal, and they will never share those with your customers or anyone else.

Also, whenever you need to transact with your bank, PayPal will not be the one to initiate the process. You will be doing it. After the transaction, PayPal will email you the details, including the exact amount of money transferred from your bank account.

Apart from that, PayPal has entire teams and an automatic algorithm that closely monitors and reviews the activities of each account for any suspicious behavior – one of which is unauthorized withdrawal.

2. Allows You to Draw Funds from Your Account Seamlessly

When you have your bank account linked to PayPal, you can fund your online purchases. This means you do not need to transfer the money manually from your bank account to PayPal. Also, if PayPal still has a positive balance but not enough to pay for your purchase, you can take the difference from your bank account.

3. No Additional Fees

Transferring money through PayPal using a debit or credit card will incur additional fees. However, if you linked your bank account, sending money to other people within the US will be free of charge.

4. Allows You to Move Money Between Accounts Easily

If you use PayPal to pay for items or receive payments, you should seriously consider linking your bank account to promote more convenience when transferring funds. You can withdraw money from your account and deposit money into it without incurring any fees.

However, this feature is only applicable for US residents whose banks are also located in the country. You need to check with your PayPal details if you live in a different country if this feature, or something similar, is available to you.

5. You Can Be PayPal Verified

Linking your bank account allows PayPal to verify your account. Once verified, you can expect to enjoy plenty of benefits. One remarkable benefit is that you will receive a drastic increase in spending and withdrawal limits.

Also, having your account verified adds to the security of PayPal as a whole. Account verification will help PayPal confirm the identities of the people you transact with. PayPal would send you notifications if you were to transact with an unverified account. You can take it as a warning that you need to be careful when transacting with that person.

What Do You Need to Create a PayPal Account?

do you need a bank account to use paypal

Unlike in banks, you do not need to fill up a stack of paperwork to open a new account in PayPal. Here’s what you need to do to create a free PayPal account:

First, you need to open the PayPal website and then click on Sign Up. After that, select the type of account that you want to open. It could be either individual or business. Click on the Get Started button.

You then need to enter the required information, which includes a valid email address. Once you filled in all the necessary spaces, you can click on Continue. PayPal will then ask you to verify your account by checking your registered email address and then clicking on the verification link in the email PayPal sent. Now, you can log in using your registered email and start using your account.

On your first login, PayPal will ask you if you want to link a personal bank account and/or a credit card with your account, which you can actually decline if you don’t want to. You can still access most of the platform’s features even if you do not link a bank account.

If you use Cash App, see our post on how to transfer cash money from the Cash App to your bank account.

Individual or Business Accounts?

When you sign up for a PayPal account, you can choose from either Individual or Business accounts, but the question is, which one should you get?

PayPal Personal Account for Online Purchases

PayPal personal accounts are primarily for those who use PayPal to pay for online purchases and send money to family and friends who also have accounts. However, you can still use the personal account for accepting payments whenever you occasionally sell items.

For instance, if you are selling a couple of your clothes and accessories on eBay, you can use your PayPal personal account. It can provide a convenient means of receiving payments from your buyers. Artists and artisans can also use their personal accounts to receive payments whenever they need to sell their works.

One downside of receiving payments using a personal account is that the buyers will see your full name with every purchase. Also, you will not have access to the other forms of payment that come with a business account, like payments through invoicing.

To recap, you can sign up for a PayPal Personal account if you will only be using it for online payments. It will also be useful if there are times when you sell items or provide services.

PayPal Business Account Can Help Your Business Website into an E-Commerce Portal

PayPal business accounts come with all the features of the Personal account and more. You will gain access to many services that can benefit big businesses and SMB owners looking for a hassle-free and affordable payment processor.

A PayPal business account can help transform your business website into an e-commerce portal by allowing your customers to use it for their payments. Aside from payment processing, a business account will also let you set up subscription services.

It will allow your customers to sign up for recurring purchases using just a single transaction and let them complete their transactions in person if needed.

PayPal Business Account Allows Up to 200 Different Individuals to Log In to the Account

Another useful feature of a PayPal business account is that it allows up to 200 different individuals to log in to the account. This is handy for SMBs who have a small staff. This means that the account owner need not be present for tasks such as setting up shipping methods and fees, inventory monitoring, and tracking profits.

A business account also comes with an entire suite of solutions that can help your company deal with the daily tasks involved in online selling. These include the ability to print your own labels, payment tracking, and access to live customer support whenever you need it.

Furthermore, you have the option to register a PayPal business account under your company’s name rather than yours. This can help protect your privacy because your customers will not see your complete name after transactions.

Conclusion – Do You Need a Bank Account for PayPal?

So, do you need a bank account for PayPal? No, you do not. You can still make use of most of PayPal’s features even if you do not link your bank account to it. However, you will not enjoy all the conveniences that come with having a bank account linked.

If you are worried about your safety, PayPal takes privacy and security seriously, so it is doubtful that something may compromise it. If you are still not convinced of PayPal’s safety, don’t worry. There are still ways you can withdraw your money even without having a linked bank account.