How Old Do You Have to Be to Have a PayPal?
Understand PayPal's account age limits and explore legitimate options for younger users to access its secure online payment services.
PayPal is a widely used online payment service that facilitates secure transactions between individuals and businesses. Many people utilize PayPal for online shopping, sending money to friends and family, and receiving payments. A common question arises regarding the age requirements for setting up an account and using these services.
Minimum Age Requirement
To open a U.S. PayPal account, an individual must be at least 18 years old, or the age of majority in their state of residence. This requirement is outlined in PayPal’s User Agreement. Parental consent does not override this minimum age. If PayPal discovers an account holder is underage, the account may be immediately limited or permanently closed. Any funds held in such an account could be frozen for up to 180 days to cover potential claims or disputes.
Reasons for Age Restrictions
The age restrictions imposed by PayPal stem from legal principles, especially contract law. In the United States, individuals under 18 are considered minors and lack the legal capacity to enter into binding contracts. When a user creates a PayPal account, they agree to a User Agreement, which is a legally enforceable contract. This age requirement protects both PayPal from legal complications and minors from engaging in financial agreements they might not fully understand or be legally bound by. Companies like PayPal also adhere to regulations such as the Children’s Online Privacy Protection Act (COPPA), which governs the online collection of personal information from children under 13.
Options for Underage Users
While individuals under 18 cannot directly open a PayPal account, a parent or legal guardian can provide a solution. An adult can open a PayPal account in their own name and allow a minor to use it under their direct supervision and responsibility. The account legally belongs to the adult, who bears full liability for all transactions.
The adult’s financial information, such as bank accounts and credit cards, must be linked to their PayPal account, not the minor’s. Should an underage individual attempt to open an account fraudulently, it can lead to severe consequences. It is important to utilize the adult-supervised account method until the minor reaches the legal age of majority.