PayPal Basics

PayPal is an online payment service that allows individuals and businesses to transfer funds electronically. Basic PayPal accounts are free, and don't require you to enter any bank account information. However, if you want to use many of PayPal's features, you'll need to add and verify a bank account or credit card. I recommend adding and verifying your bank account or a credit card for more direct transactions. It makes paying for services quick and easy. 

Once you sign up, you should know what PayPal means when it refers to this verification and confirmation process. Having your information vetted by PayPal shows both buyers and sellers that you are less likely to be a scammer.

• A PayPal account is verified if you've associated that account with a current bank account or credit card. This is more than just entering account information. PayPal will ask you to follow certain steps to complete the verification process. For a checking account, for example, PayPal will make two micropayments to that account, usually about five cents each. Then, you'll need to enter the amounts of those micropayments as verification.
• A PayPal account is confirmed if you've completed one of three options to signal to PayPal that the address on your account is valid. The fastest of these is to verify a bank account or credit card matching the address you've entered as the PayPal account's address. As an alternative, you can request a confirmation code by mail after you've had the account for 90 or more days, or you can apply for a PayPal Extras MasterCard which confirms your address by running a credit check.

For additional information, visit PayPal's website.