How does PayPal work? When you open a basic PayPal account, you can link it to your external bank accounts, credit cards and debit cards.

You can link your debit card or bank account to your PayPal account to withdraw money. However, if you want to add money to your PayPal account from your bank, you'll need to link your account.

PayPal can handle many day-to-day financial tasks, from online shopping to sending money to friends. But replacing your bank account entirely with PayPal isn’t practical for most people.

Here’s everything you need to know about using PayPal as a bank account.