Yes, you can transfer money from PayPal to your bank account in most cases
PayPal lets you move money to a linked bank account through a process called a transfer. The money leaves your PayPal balance and lands in your checking or savings account. The transfer is free if you choose the standard delivery method, which takes three to five business days. If you need the money faster, PayPal offers an instant transfer option that costs between 25 cents and $2, depending on the amount.
Before you can transfer, you must link a bank account to your PayPal account and verify it. Verification usually happens automatically when you add the account, but PayPal may ask you to confirm two small deposits they send to that bank account. Once verified, you can transfer money whenever you want, as long as your PayPal balance has funds available.
Not all PayPal accounts can transfer to a bank account. Business accounts, accounts that hold funds from sales or invoices, and accounts in certain countries may have different rules or restrictions. If you see a message that transfers are not available on your account, contact PayPal support to find out why.
Key Takeaways
- Standard transfers to a bank account are free and take three to five business days; instant transfers cost 25 cents to $2 and arrive within 30 minutes.
- You must link and verify your bank account in PayPal before you can transfer money to it.
- The money comes from your PayPal balance, so you can only transfer what you have available in your account.
- Some account types and countries have transfer restrictions; PayPal will tell you if your account cannot transfer.
How to link and verify your bank account
Go to your PayPal account settings and select Wallet or Banks and Cards, depending on your account type. Click Link a Bank Account and enter your routing number and account number. You can find both on a check or by logging into your bank's website.
PayPal will ask whether the account is a checking or savings account and whose name is on it. The name on your PayPal account should match the name on the bank account. If it does not, verification may fail or take longer.
After you submit the information, PayPal usually verifies the account instantly. If it does not, PayPal will send two small deposits (usually under $1 each) to your bank account within one to two business days. When you see those deposits in your bank account, go back to PayPal and enter the amounts to confirm verification. This second step typically takes another one to two business days.
Standard transfer versus instant transfer
Standard transfer is free and takes three to five business days. The money leaves your PayPal account right away, but your bank will not show it until the delivery window closes. This is the slowest option but costs nothing.
Instant transfer moves money to your bank account within 30 minutes for a fee. The fee is 25 cents for transfers under $10, $1.50 for transfers of $10 to $200, and 1.5% of the transfer amount for transfers over $200 (capped at $15). Instant transfer is useful when you need cash quickly, but the fee adds up if you transfer often.
Both methods pull from your PayPal balance. If your balance is zero or you have a pending hold on your funds, neither method will work until the hold lifts or money arrives in your account.
What happens if the transfer fails
A transfer can fail if the bank account information is wrong, if the account is closed, or if your bank rejects the deposit for fraud reasons. PayPal will send you a notification and usually return the money to your PayPal balance within one to three business days.
If the money does not return after three business days, contact PayPal support with the transfer reference number. You can find this in your transaction history. Have your bank account number and routing number ready so PayPal can investigate whether your bank rejected the deposit.
If your bank rejected the transfer, call your bank and ask why. Some banks flag PayPal transfers as suspicious if they are unusual for your account. Your bank may ask you to confirm the transfer before accepting future ones from PayPal.
Holds and limits on transfers
PayPal may place a hold on your balance if you recently received money, if your account is new, or if PayPal suspects fraud. A hold means you cannot transfer the money until the hold expires. Holds typically last 21 days but can be shorter if PayPal confirms the transaction is legitimate.
PayPal also sets transfer limits based on your account history and verification status. New accounts may only be able to transfer small amounts, such as $500 per month. As your account ages and you complete more transactions, these limits usually increase. You can check your transfer limit in your account settings under Limits.
If you hit your transfer limit, you must wait until the next calendar month to transfer more. There is no way to raise the limit faster, but contacting PayPal support can sometimes reveal whether a recent action (like confirming your identity) will unlock a higher limit sooner.
Transferring money from a PayPal debit card
If you have a PayPal Cash or PayPal Cash Plus account, you receive a debit card. You can use this card to withdraw cash from ATMs or spend money directly without transferring to your bank. However, you cannot transfer money from the debit card itself to a bank account—the transfer must come from your PayPal balance.
If you want to move money from your debit card balance to a bank account, you must first transfer it to your PayPal balance, then transfer from PayPal to your bank. This takes two steps and two transfer windows instead of one.
Transfers from PayPal Credit or PayPal loans
You cannot transfer money from a PayPal Credit line or a PayPal loan to your bank account. These are credit products, not cash balances. Money from PayPal Credit can only be used to make purchases at merchants that accept PayPal. If you borrowed money through a PayPal loan, that money goes directly to your bank account when the loan is approved—you do not transfer it yourself.
If you have both a PayPal balance and a PayPal Credit line, the balance and the credit line are separate. You can transfer the balance to your bank, but the credit line remains available only for purchases.
Frequently Asked Questions
How long does a transfer to my bank account actually take?
Standard transfers take three to five business days from the time you request them. Weekends and bank holidays do not count as business days. Instant transfers arrive within 30 minutes on business days; on weekends or after hours, they may take until the next business day. Check your PayPal transaction history to see the exact delivery date PayPal promised when you made the transfer.
Can I transfer money 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 another person, use PayPal's send money feature or a peer-to-peer transfer. Those options let you send to another PayPal account or, in some cases, directly to their bank account, but the transfer is a separate transaction from moving your own balance.
What if I transfer money and then change my mind?
Once a transfer is submitted, you cannot cancel it through PayPal. If the transfer has not yet arrived at your bank, contact PayPal support immediately with the transfer reference number and ask them to recall it. If the money has already landed in your bank account, you must contact your bank to reverse the deposit or initiate a return transfer to PayPal.
Do I have to pay taxes on money I transfer from PayPal to my bank?
Transferring your own money from PayPal to your bank is not a taxable event. However, the money in your PayPal balance may be taxable depending on how you earned it. If you received the money from sales, services, or other income, you owe taxes on that income regardless of whether it sits in PayPal or your bank. Keep records of all PayPal transactions for tax purposes.
Why does PayPal say I cannot transfer money right now?
PayPal blocks transfers if your account is new, if there is a hold on your balance, if you have hit your monthly transfer limit, or if PayPal suspects fraud. Check your account settings for any holds or limits. If you see a specific error message, that message usually explains the reason. Contact PayPal support with a screenshot of the error if you cannot resolve it yourself.