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you have to have a bank account linked to it. That way you can send the funds you get in there to your bank. That is, however, unless you only purchase with paypal, and never sell using it, or if you do sell you spend that money directly from the account instead of sending it to your bank. Otherwise, you pretty much need a bank account so you can withdraw from your paypal account to your bank. I've never had an issue with linking my bank account to paypal, but I know plenty of others have and many opt not to use paypal altogether to avoid any hassles.
Cheers, JBrobst 
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