Do I Need to Link My Bank Account for PayPal?

The Facts
Although linking your bank account to PayPal increases user options, it is not an account requirement. Instead, you can use your account to accept money from other PayPal users or you can add funds on your own using a MoneyPack prepaid card. If you choose the MoneyPack option, verifying your personal information by providing MoneyPack with your name, address, date of birth and Social Security number increases the amount you can add to your PayPal account from $250 per year to up to $2,000 per month. To withdraw funds, you can use your account to pay for online purchases that accept PayPal or send money electronically to anyone with an email address and PayPal account.
Bank Option
If you choose to link your bank account, you have the additional option of transferring money, at no additional charge, to and from your bank and PayPal account. In addition, you can make online purchases using your PayPal account even if you a zero balance. In this case, PayPal will automatically transfer funds to cover your purchase using your bank account funds.
Process
You can link up to eight checking or savings accounts to PayPal via the profile section of your PayPal account. PayPal will need the account and routing numbers of each account. Once you add this information, PayPal verifies and completes the process of linking the account. You also have the option to remove a bank account at any time by selecting the appropriate account and selecting the remove option. If you have more than one PayPal account, keep in mind that you can only link a bank account to one PayPal account at a time.
Considerations
Whether you link your bank account or not, it is important to understand that under certain circumstances, PayPal does share your personal information with third parties. According to its privacy policy, PayPal does not sell or rent your personal information to any third-party companies for marketing purposes. However, it does share your information with eBay and eBay subsidiaries, fraud prevention contractors, PayPal credit card marketers, credit bureaus, any companies that merge with PayPal or that PayPal purchases and law enforcement agencies. Of these, the only you have the option to opt-out on are those that involve marketing. To opt out, go to the profile section of your account and remove the check mark from the Information Sharing box.