Yes, you can transfer money from PayPal to a bank account, but the method and timeline depend on your account type and which bank you use
PayPal lets you move money out to a linked U.S. bank account through a standard transfer, which usually takes one to three business days. If you have a PayPal Cash or PayPal Cash Plus account, you can also use an instant transfer to get the money the same day, though this costs a fee. The catch: not every bank accepts PayPal transfers, and some regional banks or credit unions may block them or delay them longer than the standard timeline.
The money has to come from your PayPal balance first. If you received a payment as a seller or peer transfer, it lands in your PayPal account, not your bank account. You then initiate the transfer yourself—PayPal does not push money out automatically.
Key Takeaways
- Standard transfers from PayPal to a linked bank account take one to three business days and have no fee.
- Instant transfers complete the same day but cost 1.75% of the amount you send, with a minimum fee of $0.25.
- Your bank must accept ACH transfers and not block PayPal specifically; some credit unions and regional banks do block them.
- You must link your bank account to PayPal and confirm it before you can transfer money out.
- Transfers only work from your PayPal balance; money received as payment or a peer transfer sits in PayPal until you move it.
How to link your bank account to PayPal
Before you can transfer money out, you need to add your bank account to PayPal and verify it. Log into your PayPal account, go to Wallet, then select Link a Bank Account. Enter your routing number and account number—you can find both on a check or by logging into your bank's website.
PayPal will then send two small deposits (usually between $0.01 and $0.99 each) to your bank account over one to two business days. Once you see them, go back to PayPal and confirm the amounts. This proves you own the account. After confirmation, your bank account is linked and ready to use for transfers.
If your bank rejects the verification deposits, PayPal will tell you why. Common reasons include the account being closed, the routing number being wrong, or the bank blocking PayPal transfers outright. Contact your bank to ask if they accept ACH transfers from PayPal specifically.
Standard transfers: one to three business days, no fee
A standard transfer moves money from your PayPal balance to your linked bank account at no cost. The money usually arrives within one to three business days, though the exact timeline depends on your bank. Some banks process ACH transfers faster than others; a large national bank may post it overnight, while a smaller regional bank might take the full three days.
To initiate a standard transfer, open PayPal, go to Wallet, and select Transfer Money. Choose "Transfer to your bank" and enter the amount. PayPal will show you the expected arrival date before you confirm. Once you submit, the transfer is locked in—you cannot cancel it after PayPal processes it, though you can contact PayPal support if the transfer has not yet left their system.
Weekends and bank holidays add time. If you transfer money on a Friday evening, your bank may not receive it until Monday or Tuesday, depending on when PayPal sends the batch.
Instant transfers: same day, but with a fee
If you need the money the same day, PayPal offers instant transfers for accounts in the U.S. The fee is 1.75% of the amount transferred, with a minimum of $0.25 and a maximum of $15 per transfer. So transferring $100 costs $1.75; transferring $1,000 costs $15.
Instant transfers are only available if you have a PayPal Cash or PayPal Cash Plus account. If you have a standard personal account, you cannot use this feature. To check your account type, go to Settings and look under Account Information.
The money lands in your bank account the same business day, usually within 30 minutes to a few hours. If you initiate an instant transfer after your bank's cutoff time (typically 5 p.m. Eastern), it may not arrive until the next business day. Weekends and holidays also delay it to the next business day.
Why a bank might reject or delay a PayPal transfer
Some banks do not accept ACH transfers from PayPal, either because of their own policy or because they use a processor that blocks PayPal specifically. Credit unions are more likely to have this restriction than large national banks. If your bank rejects the transfer, PayPal will return the money to your PayPal balance within one to three business days.
Other banks accept PayPal transfers but process them more slowly than standard ACH transfers. This is rare but can happen with smaller regional banks or if your account has unusual activity flags. If a transfer is delayed beyond three business days, contact your bank's customer service and ask them to look up the ACH transfer by the reference number PayPal provided.
Occasionally, PayPal itself will hold a transfer if your account is new, you have not verified your identity, or there is unusual activity. PayPal will notify you if this happens and tell you when the transfer will be released.
What happens if the transfer fails or goes to the wrong account
If you enter the wrong routing number or account number, the transfer may bounce back to PayPal. Your bank will reject it and return it within one to three business days. PayPal will then credit your PayPal balance with the full amount. You can then try again with the correct account details.
If the transfer goes to a different account at the same bank (for example, you entered your old account number by mistake), recovery is harder. Contact your bank immediately and ask them to reverse the transfer. They may be able to pull it back if it has not been claimed, but this is not may provide. PayPal cannot reverse a transfer that has already been accepted by the receiving bank.
To avoid this, double-check your routing and account numbers before you submit. You can verify them by logging into your bank's website or looking at a check.
Transferring money from PayPal as a seller or after a peer payment
If you received money through PayPal as a seller or from a peer transfer, that money sits in your PayPal balance until you move it. It does not automatically go to your bank account. You have to initiate a transfer yourself using the same steps as above: go to Wallet, select Transfer to Your Bank, and choose standard or instant.
Seller payments may have a hold on them if it is your first transaction or if the buyer is in a different country. PayPal will tell you when the hold lifts and when you can transfer the money. Peer transfers from friends usually have no hold and can be transferred immediately.
Frequently Asked Questions
Can I transfer money from PayPal to someone else's bank account?
No. PayPal transfers only go to the bank account linked to your own PayPal account. If you want to send money to someone else's bank account, you would need to use a different service like Wise, ACH transfer through your own bank, or a wire transfer. PayPal's peer-to-peer feature sends money to their PayPal account, not their bank.
What if my bank account is not linked yet?
You cannot transfer money until your bank account is linked and verified. Add your account in the Wallet section, wait for the two verification deposits, and confirm the amounts. This usually takes one to two business days. Until then, your money stays in your PayPal balance.
Do I pay taxes on money I transfer from PayPal to my bank?
Transferring money from PayPal to your bank does not create a new tax event—the money was already yours when it landed in PayPal. However, the original payment (whether from a sale, peer transfer, or refund) may be taxable depending on what it was for. Keep records of all transactions for tax purposes.
Can I transfer money from PayPal to a business bank account?
Yes, if the business bank account is linked to your PayPal Business account. The process is the same as with a personal account. Some business banks have stricter verification requirements, so the linking process may take longer.
What if the transfer shows as pending for more than three days?
Contact your bank first and ask them to look up the ACH transfer using the reference number from PayPal. If your bank has not received it, contact PayPal support with the transfer date and amount. Transfers rarely take longer than three business days unless there is a bank holiday or weekend involved.