Yes, you can send money from PayPal to another bank account
PayPal lets you transfer money to a bank account in the United States, and the process takes one to three business days depending on your bank. You initiate the transfer through your PayPal account, name the receiving bank and account, and PayPal moves the money directly to that account. The receiving account does not need to be a PayPal account — it can be any U.S. bank account at any institution.
The catch is that PayPal charges a fee for most transfers. A standard transfer to your own bank account costs $0.25 per transaction. If you want the money faster — next business day or same day — PayPal charges $1.50 to $2.00 depending on the speed you choose. Transfers to someone else's bank account (not your own) cost $1.50 to $2.00 regardless of speed.
Key Takeaways
- Standard transfers from PayPal to your own U.S. bank account take one to three business days and cost $0.25 per transfer.
- Instant or next-day transfers cost $1.50 to $2.00 and move money faster, but are only available to your own linked bank account.
- Transfers to someone else's bank account always cost $1.50 to $2.00 and take one to three business days.
- You must link and confirm the receiving bank account before PayPal will transfer money to it.
- PayPal holds new bank accounts for up to 21 days before allowing transfers, as a fraud prevention measure.
How to link a bank account to PayPal
Before you can transfer money, you need to add the bank account to your PayPal account. Log into PayPal, go to Wallet, select Link a Bank Account, and enter the bank's routing number and the account number. PayPal will then make two small test deposits to that account — usually $0.01 and $0.02 — which arrive within one to two business days.
Once the deposits land, you log back into PayPal and confirm the amounts. This confirms that you own the account and have access to it. Only after you confirm those amounts can you transfer money to that account. If the account is brand new to PayPal, the platform holds it for up to 21 days before allowing transfers, even after you confirm the test deposits. This is PayPal's standard fraud prevention step.
Standard transfer versus instant transfer
A standard transfer takes one to three business days and costs $0.25. The money leaves your PayPal balance immediately, but your bank account does not receive it right away. Weekends and bank holidays add time — a transfer initiated on Friday afternoon may not arrive until Tuesday. This is the cheapest option and works well if you are not in a hurry.
An instant transfer (or next-day transfer, depending on your bank) costs $1.50 to $2.00 and moves money much faster. Instant transfers typically arrive within minutes to a few hours. Next-day transfers arrive by the next business day. Both options are only available if you are transferring to your own linked bank account, not to someone else's account.
Transferring to someone else's bank account
If you want to send money to another person's bank account, the process is different. You cannot use PayPal's transfer feature directly — instead, you use PayPal's money transfer service, which is separate from the wallet transfer tool. This service costs $1.50 to $2.00 per transfer and takes one to three business days.
To send money this way, you provide the recipient's name, bank account number, routing number, and bank name. PayPal sends the money directly to their account. The recipient does not need a PayPal account. However, this feature is not available in all states or for all types of accounts, so check your PayPal settings to see if it is turned on for you.
What happens if the transfer fails
If PayPal cannot complete the transfer — for example, because the account number is wrong or the account is closed — the money returns to your PayPal balance within three to five business days. PayPal will send you a notification explaining why the transfer failed. You can then correct the account details and try again.
If you dispute a transfer or believe it was sent in error, contact PayPal's Resolution Center. You have 180 days from the transfer date to report a problem. PayPal will investigate and may reverse the transfer if it finds that the transaction was unauthorized or that you provided incorrect account information.
Fees and limits on transfers
PayPal does not charge a fee to receive money into your PayPal account, but it does charge to move that money out to a bank. The fee structure is: $0.25 for a standard transfer to your own account, $1.50 to $2.00 for instant or next-day transfers to your own account, and $1.50 to $2.00 for any transfer to someone else's account.
PayPal also sets daily and monthly limits on how much you can transfer. These limits vary based on your account history and verification status. A newly verified account might have a $5,000 daily limit, while an older account with a strong history might have a $25,000 daily limit. You can check your limits in your Account Settings under Limits. If you need to transfer more than your limit allows, you can request a limit increase, though PayPal may take several days to review and approve it.
Timing: when the money actually arrives
A standard transfer initiated on a weekday before 11:59 p.m. ET usually arrives at your bank within one to three business days. If you initiate it on a weekend or holiday, the clock starts the next business day. Some banks process deposits faster than others — a transfer might arrive at one bank in one day and at another bank in three days, even though PayPal sent it at the same time.
Instant transfers typically arrive within minutes, but can take up to a few hours depending on your bank's processing speed. Next-day transfers arrive by the end of the next business day. If a transfer does not arrive within the stated timeframe, contact PayPal's Resolution Center with your transaction ID. PayPal can confirm whether the money left its system and, if so, work with your bank to locate it.
Frequently Asked Questions
Can I transfer money from PayPal to a bank account outside the United States?
PayPal's standard transfer feature only works for U.S. bank accounts. If you need to send money internationally, you will need to use PayPal's international money transfer service, which has different fees and longer processing times. Check PayPal's website for the countries and banks it currently supports.
What if I link the wrong bank account by mistake?
You can remove the account from your PayPal wallet at any time. Go to Wallet, find the linked account, and select Remove. If you have already transferred money to the wrong account, contact PayPal's Resolution Center immediately. PayPal may be able to reverse the transfer if it has not yet been processed by the receiving bank.
Do I have to pay tax on money I transfer from PayPal to my bank account?
Transferring your own money from PayPal to your bank account is not a taxable event. However, if the money in your PayPal account came from selling goods or services, that income is taxable. PayPal reports certain transactions to the IRS, so keep records of what the money represents.
Can I set up automatic transfers from PayPal to my bank account?
PayPal does not offer automatic recurring transfers. You must initiate each transfer manually through your account. However, you can set up a transfer as soon as money arrives in your PayPal balance, which is faster than waiting to do it later.
What if PayPal says my bank account is not verified?
PayPal requires you to confirm the two test deposits before the account is verified. If you have not received those deposits, wait one to two business days. If they do not arrive, the routing or account number may be incorrect. Remove the account and add it again with the correct information.