Now that you’ve created an eBay account, you’ll also want to create an account on eBay company PayPal. A PayPal account will make it possible for you to quickly and easily make and receive payments without having to repeatedly enter credit card or banking information, or without having to wait for the sending or receiving of checks or money orders.

For sellers it is a major requirement to have your PayPal account, because 99% of all payments on eBay pass through PayPal.  If you have PayPal account, you do not need separate payment processing for all major credit cards.  PayPal takes all major credit cards to it and convert payment to your account.

Step 1: Sign up for PayPal

On the lower half of the confirmation page welcoming you to eBay, you’ll see a section marked “Sign up for PayPal” (you may have to scroll down in order to see it). Since PayPal is the single most essential tool to have for successful buying and selling on eBay, you should immediately join PayPal as well before doing anything else on the eBay website.

To do this, click the “Sign up for PayPal” button. You’ll be taken directly to the PayPal website and presented with a form similar to the one that you just completed for eBay. Separately you can just type in to your browser and it will take you to the nearest Paypal site to your residing country.

Step 2: Complete the PayPal registration form

To complete the PayPal registration form, similar in many ways to the eBay registration form you’ve just completed, follow these steps:

Enter your email address in the first box. The email address that you provide here will be both your PayPal ID (you’ll use it to log into PayPal and to receive payments from PayPal) and the email address on which you’ll receive PayPal notifications.

Enter the password you’d like to use for PayPal into the next two boxes, again taking care that both of the passwords that you enter match.

Enter your first and last names where indicated. It is imperative that your names as supplied here be real, since they must match the payment information on your checking and credit card accounts in order for PayPal to conduct transactions for you.

Select your country of residence from the drop-down list.

Enter your street address, city, state or province, and zip or postal code address in the relevant areas taking care once again to ensure that the data you enter here matches the data your bank/account or credit card holders have on file for you.

Enter your complete phone number.

As you did on the eBay registration form, do your best to read the unusual captcha text provided to you near the bottom of the form and enter it into the code box to verify to PayPal that you are a human and not an Internet bot/robot.

Carefully read PayPal’s user agreement and terms of policy by clicking on their respective links.

When you’re done with the form, click the “Agree and Sign Up” button to proceed with your PayPal registration.

Step 3: Link a bank account/credit card to your PayPal account

Once you’ve successfully submitted your PayPal registration form, you’ll see another welcome page confirming the creation of your account. Once again, however, before you return to eBay to start shopping or selling, you should link one of your bank accounts or credit card information to your PayPal account to enable you to send and receive payments easily and conveniently.

Click on the “Add Bank Account” link to link a checking or savings account to your PayPal account.  This feature is for the citizens of United States only.  For members from rest of the world, you need your credit card information to link to Paypal account.

Click on the “Add Credit/Debit Card” link to link a credit card account to your PayPal account. Linking a checking or savings account will make it possible for you to receive payments via PayPal for any items that you sell on eBay and to have these payments quickly and easily transferred to the bank account in question.

Note: Whichever you choose to add now, you can always add additional checking, savings, or credit card accounts later by visiting PayPal directly at , logging in, and adding the accounts in question to your profile.

Step 4: Enter account details and confirm

Since a checking or savings account is likely the first type of account you’ll want to link to your PayPal account, that’s what we’ll illustrate here. once you’ve clicked the “Add Bank Account” link on the PayPal welcome page, you’ll see one last form to complete before your eBay/PayPal registration is complete and ready for everyday use. This form simply collects information about your bank account so that it can be linked to your PayPal account. Here’s how to complete the form:

Enter your bank’s branch or official name, as it appears on your checks or bank statements, in the “Bank Name” box.

Tell PayPal whether the account you’re linking is a checking account or a savings account.

Enter the routing number for the bank or branch where your account is housed in the box labeled “Routing Number.” If you don’t know this number, you can find it on the checks you have for the account in question; it is the 10-digit number at the lower-left.

Enter the account number for this account in the boxes labeled “Account Number.” Once again you’re asked for the same information twice so that PayPal can be sure you’ve typed it correctly; be sure to enter it carefully and correctly each time.

Click the “Continue” button to confirm your account and proceed to the next step.

For non-US citizens, adding a Bank account feature is not available.  Instead, you are requested to fill up your credit card that would be linked to PayPal.  To add your credit card information, similar questions will be provided by Paypal.

Step 5: Follow any additional directions from PayPal

Once you’ve entered your account information and clicked on the “Continue” button, PayPal will provide you with a simple set of instructions for confirming that the account you’ve supplied is indeed yours, steps that vary with from case to case and with the type of account provided.

Most of the time, PayPal will make one or several small deposits to your account in the days following your registration. Your job in such cases is to record the amounts of these deposits, Visit PayPal and log in using your email address and password, and enter the amounts of these deposits to prove to PayPal that the account in question is indeed yours, is active, and that you currently have access to it.

In case of linking to your credit/debit card, PayPal will make a small amount of charge to your credit card and you are required to record the 4 digit PayPal code on your credit card transaction record with PayPal.

You can find your 4-digit PayPal code on your debit or credit card statement next to or near the charge amount. In the item description section, you will see it next to the word PAYPAL or PP.

Please allow a few business days for the PayPal code to appear on your online card statement. If you do not have online access to your statement, you’ll need to wait for your monthly credit statement in the mail.

To enter your PayPal code, log in to your PayPal account, click Profile at the top of the page and click Credit Cards under Financial Information.  After the correct update, your PayPal account is activated.

Whatever the directions supplied, follow them carefully to confirm the linking of your checking, savings, or credit card account to your PayPal account, so that you can send and receive payments on eBay quickly and easily.

Step 6: Choose your account type on PayPal

As part of the PayPal, you have to choose your account type on PayPal.  The most basic is the Personal account. The more advanced ones are Premier and Business accounts.

All PayPal accounts allow you to send and receive payments.

  • Personal accounts are mostly used for buying.
  • Premier accounts are used for buying and selling using your personal name.
  • Business accounts are for buying and selling using your business or corporate name.

If you just plan to be a buyer on eBay, and seldom transfer money, you can choose Personal account.  If you plan to become a seller on eBay, you must register a Premier account.  The difference between Premier account and Business account is when you transfer your PayPal balance that you collect after selling back to your own bank account.  The Premier account transfers the money from PayPal to Bank account under your own name while the business account would transfer the money to your Bank account under Business name.  The Premier Account can have only single access while the Business Account can have multiple accesses to the PayPal account.

You can upgrade or down grade your account any time according to your needs in future.  You can have all three types of Paypal accounts also.  However each account must be supported by different e-mail, different Bank account and different credit card.

Congratulation! now you are a complete member to both eBay and PayPal.