Yes, you can transfer money from PayPal to a bank account
Money in your PayPal account can move to a linked bank account through a process PayPal calls a transfer. You initiate it from your PayPal wallet, choose the bank account you want the money to go to, and PayPal sends it. The transfer is not instant — it takes one to three business days for the money to land in your bank account, depending on your bank and the day you initiate the transfer.
You do not need to pay a fee to transfer to a linked bank account in the United States. PayPal does charge fees for some other ways to move money (like instant transfers or transfers to a debit card), but a standard transfer to a checking or savings account is free.
Key Takeaways
- Standard transfers from PayPal to a linked bank account are free and take one to three business days.
- You must link your bank account to PayPal first by providing your routing number and account number, and PayPal will verify it with two small deposits.
- Instant transfers to a debit card cost 1.75% of the amount (with a minimum fee), but move the money within 30 minutes.
- If a transfer fails or is delayed, check that your bank account information is correct and that your PayPal account is not limited or under review.
How to link your bank account to PayPal
Before you can transfer money out, PayPal needs to know which bank account to send it to. Go to your PayPal account settings, find the "Wallet" or "Banks and Cards" section (the exact name varies by whether you use the app or website), and select "Link a Bank Account." PayPal will ask for your routing number and account number — both appear on the bottom left of a check, or you can find them by logging into your bank's website.
After you enter this information, PayPal deposits two small amounts (usually under $1 each) into your bank account over one to two business days. Once those deposits show up in your bank, you go back to PayPal and confirm the amounts. This verification step proves you own the account. Only after PayPal confirms the deposits can you transfer money out.
If you already have a debit card linked to PayPal, you can sometimes skip this step — PayPal may let you link the bank account associated with that card automatically. Check your wallet settings to see if that option is available.
Starting a standard transfer
Once your bank account is linked and verified, transferring money is straightforward. Open PayPal, go to your wallet, and look for a "Transfer Money" or "Withdraw" button. Select it, choose "Transfer to Your Bank," and pick the bank account from the list of linked accounts. Enter the amount you want to move and confirm.
PayPal will show you the expected arrival date before you finalize the transfer. Standard transfers arrive in one to three business days. Weekends and bank holidays do not count as business days, so a transfer you start on Friday evening may not arrive until Wednesday. Some banks are slower than others — if your bank is small or regional, it may take the full three days even if PayPal sends the money quickly.
Once you confirm the transfer, the money leaves your PayPal balance immediately and goes into a "pending" state. You can see it in your PayPal transaction history, but you cannot spend it from PayPal anymore. It is on its way to your bank.
When transfers fail or get stuck
A transfer can fail if your bank account information is wrong, if your bank rejects the deposit for some reason, or if your PayPal account is limited or under review. If a transfer fails, PayPal sends you a notification and the money returns to your PayPal balance within a few business days.
The most common reason for failure is a mismatch between the name on your PayPal account and the name on your bank account. If you recently changed your legal name or opened the bank account under a different name, update your PayPal profile information first, then try the transfer again. You may also need to contact your bank to ask why they rejected the deposit — some banks flag transfers from payment platforms as suspicious and need you to confirm it was legitimate.
If your PayPal account shows a warning that it is "limited" or "under review," you cannot transfer money until PayPal resolves the issue. This usually means PayPal is investigating unusual activity or asking you to verify your identity. Check your PayPal messages and follow the steps PayPal outlines. Once the review is complete, you can transfer again.
Instant transfers and other faster options
If you cannot wait one to three days, PayPal offers instant transfers to a linked debit card. This move costs 1.75% of the amount you transfer, with a minimum fee of $0.25. The money arrives within 30 minutes on business days. For example, transferring $100 to a debit card costs $1.75 and arrives in your debit card account within 30 minutes.
Instant transfers go to a debit card, not a savings account. If you only have a savings account linked to PayPal, you cannot use instant transfer. You would need to link a debit card first, or stick with the free standard transfer and wait the one to three days.
Some PayPal users also have access to a feature called PayPal Cash or PayPal Cash Plus, which includes a debit card. If you hold one of these accounts, you can move money to the card instantly for free, then withdraw from an ATM or use the card to spend. Check your PayPal account to see if this option is available to you.
Limits on how much you can transfer
PayPal does not publish a single transfer limit that applies to everyone. Your limit depends on your account history, how long you have been a PayPal user, and whether you have had disputes or chargebacks in the past. New accounts typically have lower limits — sometimes as low as $500 per transfer or $1,000 per month. Established accounts with a clean history may be able to transfer $5,000 or more per transaction.
To find your specific limit, go to your PayPal wallet and start a transfer. PayPal will show you the maximum amount you can transfer in that session. If you need to move more money than your limit allows, you can do multiple transfers on different days, or contact PayPal to ask if your limit can be raised.
If your account is new or has had issues, PayPal may hold your transfer for a period of time before releasing it to your bank. This is separate from the one- to three-day processing time. If PayPal places a hold, it will tell you the expected release date in your transaction history.
What happens if your bank rejects the transfer
Occasionally a bank refuses a deposit from PayPal, even though the account number and routing number are correct. This usually happens because the bank's fraud detection system flags the transfer as unusual or because the account has restrictions on incoming transfers. When this happens, the money stays in your PayPal account and PayPal notifies you of the rejection.
Contact your bank and tell them you are expecting a transfer from PayPal. Ask them to whitelist PayPal's sending bank or to allow the transfer through. Once your bank agrees, you can initiate the transfer again from PayPal. If your bank continues to reject transfers, you may need to open an account at a different bank or use an instant transfer to a debit card instead.
Frequently Asked Questions
How long does it really take for money to show up in my bank account?
One to three business days is the standard window. The exact timing depends on when you initiate the transfer and your bank's processing speed. A transfer started on a Tuesday morning usually arrives by Thursday. One started Friday evening may not arrive until the following Wednesday, since weekends do not count.
Can I transfer money from PayPal to someone else's bank account?
No. Transfers from PayPal go only to a bank account in your own name. If you want to send money to someone else, use PayPal's "Send Money" feature to transfer to their PayPal account or email address, or use a different service like Venmo or a wire transfer.
What if I transfer money by mistake to the wrong bank account?
Once a transfer leaves PayPal and enters the banking system, PayPal cannot stop it or reverse it. Contact your bank immediately and ask them to recall the transfer or reverse the deposit. Your bank may be able to recover the money if they act quickly, but there is no may provide. This is why it is important to double-check the bank account you select before confirming a transfer.
Do I have to pay taxes on money I transfer from PayPal to my bank account?
Transferring money from PayPal to your bank does not create a taxable event by itself. However, the money in your PayPal account may already be taxable income — for example, if you received it as payment for work or sold something. Transferring it does not change whether it is taxable. Keep records of where the money came from and consult a tax professional if you are unsure.
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. However, some banks allow you to set up automatic transfers from PayPal to your bank account on their end, if PayPal is linked as an external account. Check your bank's bill pay or transfer settings to see if this option is available.