PayPal Under 18 – is It Possible? What Happens When You’re Under 18

Typically, since the basic requirement of PayPal is a working email address, then almost anyone can open an account, even young people. A lot of things happen if you have a PayPal account when you are underage. That said, it also has been quite a time since our last encounter with a PayPal account that still allows children as users. But this will not prevent us from instilling values regarding saving, spending, and investing money in our children, because as the saying goes: It is never too early or too late to start!

paypal under 18

Being financially stable has tremendous benefits for our overall health and well-being. It comes with a degree of security that extends far beyond the ability to pay rent and bills on time. Meaning it knows no age limit. Still, this article explains the issues that arise with underage PayPal users.

Consequences of having PayPal when underage

PayPal used to offer a PayPal Student account, but that service was eventually discontinued because no one under 18 could enter into a legal contract in the United States. Now, if PayPal finds out that you are indeed under 18, it will retain all the remaining funds in your account. Afterward, it will consider your account as limited, thus, making it no longer accessible.

Another painful thing about this situation is that you can get permanently banned from using PayPal if you have attempted to register as a minor in the past. If you managed to register as a minor, stop everything and withdraw all your PayPal funds now because your account may be tagged as “limited.”

READ MORE: 5 Ways to Avoid PayPal Fees

After phasing out the student account, PayPal made it a mandatory feature to have a legally binding agreement upon registration. Following the United States law, you should be 18 and above to sign those contracts.

Remember, PayPal is not the only option.

While having a PayPal Student account is no longer possible, you don’t need to fret. There are other ways to help your children manage their money.

Parents should make a serious effort in helping their children understand the value of financial literacy at an early age. Photo courtesy of Fabian Blank via Unsplash.

1. Capital One

There are other ways to transfer money online. First, you have Capital One, an online savings platform with no monthly fees and maintaining balance. Here, your money can also have a 1% annual percentage yield. To open an account, parents should register their child for the account. This platform makes children bank accounts by providing a Capital One 360 “Money” account.

The many benefits of having a Capital One 360 Money account include a free debit card that teenagers can use at any store that accepts MasterCard, text alerts that inform both teenagers and their parents when low balances are present, fee-free ATMs, and accounts that earn interest.

However, there is one disadvantage: fund transfers may require a parent’s consent. But for the most part, children have the freedom to do the deposit themselves by uploading a picture of the check or mailing it to a Capital One branch.

2. Greenlight debit card

Greenlight is one of the emerging startups that allows minors of all ages to have their own account. You should be at least 13 years of age if you want to sign up and have your own account. It is a prepaid card like any other. It offers the things you are already familiar with, like allowing you to have money in your account and taking out money at your disposal.

We repeat, it is just like other cards, except for one feature that outsmarts the rest. The Greenlight debit card comes with a companion app that shows you where you spend your money. In other words, it grants you control. It approves transactions beforehand, adds allowances, disables surprise withdrawals, among others.

3. Current

Another option is the Current card. Owned by Metropolitan Commercial Bank, it is another app-controlled card that helps parents and their children manage money. Current works like a regular savings card. Unlike Capital One, Current has a $64 annual fee per child. Parents can set specific activities, transfer funds, and track spendings through the app.

Like the Greenlight debit card, the Current card puts a limitation to the amount that can be pulled out and block the spending by category, a neat feature that parents will surely love. Through this, teenagers will get a sense of autonomy to practice money management and financial discipline. There is also the launch of account and routing numbers that follow the Current’s recent addition of instant transfers.

4. GoHenry

GoHenry is a rapidly growing online baking system that comes with a debit card and an app. Kids ages 6 to 11 can now have financial control of their money. The company allows a 1-month free trial, which is a great way to experience the product. Kids can also customize their own cards according to their style. Sounds cool, right?

This banking system gives you an online account connected to another account owned by your child. Only the money in the cards can be spent. Therefore, you do not have to worry about having the risk of running debt on the card or getting confronted by overdraft fees.

READ MORE: How To Cancel Pending PayPal Payment


Financial stability has a significant impact on our general health and well-being. It comes with a level of assurance that goes well beyond the capacity to pay rent and bills on time. And it is always a good idea to start saving when you can as it will help in the long run.

Yes, PayPal Under 18 is not possible, but this is okay. Just like in any other endeavor, adult guardians must grant any young person permission to make challenging decisions such as personal financial management that PayPal offers. It’s probably one of the best solutions for parents who want to dole out allowances to children and let the learn how to use and learn money management and credit cards responsibly.

Queries regarding online payment service, online services, Paypal Seller Protection, legal contract age in the comment section or contact customer service.

Some people try to go around this prescription and use mysterial emails to make adult profiles, but this is not encouraged. There are other payment service alternatives that young people can use online if there is a dire need for a young individual to transact online. 

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