The basic steps to transfer PayPal funds to your bank
To move money from PayPal to your bank account, log into PayPal on a computer or phone, go to your Wallet, select your bank account, and choose how much to transfer. PayPal will then send that money to the bank account you have linked. The transfer usually takes one to three business days, though it can take up to five depending on your bank and the day you initiate it.
You do not need to pay a fee for standard transfers to a U.S. bank account linked to your PayPal. If you choose an instant transfer (available in some states), PayPal charges a small percentage of the amount you send, typically 1.5% with a minimum fee of around 25 cents.
The amount you can transfer depends on your account history and how long you have held the account. New accounts may have lower limits. PayPal will show you your available transfer amount before you confirm.
Key Takeaways
- Standard transfers from PayPal to a linked U.S. bank account are free and take one to three business days.
- You must link a bank account to your PayPal first—you can do this in your wallet settings by providing your routing and account numbers.
- Instant transfers are available in most states but charge a fee of roughly 1.5% of the amount transferred.
- PayPal limits how much you can transfer based on your account age and history; new accounts may have lower daily or monthly caps.
How to link a bank account to PayPal before your first transfer
If you have never transferred money from PayPal before, you need to add your bank account to your PayPal wallet first. Open PayPal, go to Wallet, and select "Link a bank account." You will need your bank's routing number (a nine-digit code) and your account number. Both appear on the bottom left of your checks, or you can call your bank to ask.
PayPal will then send two small deposits to your bank account—usually 10 to 20 cents each—within one to two business days. Once those deposits arrive, you log back into PayPal, go to your bank account settings, and enter the two deposit amounts to confirm you own the account. This verification step protects you from someone else linking your bank to their PayPal without permission.
After verification, your bank account is ready to use for transfers. You can link multiple bank accounts if you have them, and you can change which one is your default for transfers.
Standard transfers versus instant transfers
Standard transfers are free and take one to three business days in most cases. PayPal processes them on business days only, so if you initiate a transfer on Friday evening or over a weekend, the clock starts on Monday. Your bank may also add processing time on its end, which is why five business days is the outside window.
Instant transfers move money to your bank account within 30 minutes in most cases, but they cost money. The fee is roughly 1.5% of the amount you transfer, with a minimum fee (usually around 25 cents) and a maximum fee (often $15 or more, depending on your state). Instant transfers are not available in all states; PayPal will tell you whether yours supports them when you try to initiate one.
Choose standard transfer if you can wait a few days. Use instant transfer only if you need the money urgently and the fee is worth it to you. For example, a $100 instant transfer might cost $1.50, while a $1,000 transfer might cost $15.
What to do if your transfer is delayed or does not arrive
If a standard transfer does not arrive within five business days, log into PayPal and check the status of the transfer in your transaction history. PayPal will show you whether it is pending, processing, or completed. If it shows completed but your bank has not received it, contact your bank's customer service and provide them with the transfer date and amount. Banks sometimes hold transfers for fraud review, especially if the amount is large or the account is new.
If PayPal shows the transfer is still pending after five business days, contact PayPal's Resolution Center. You will need the transaction ID (a long number PayPal assigns to each transfer) and the date you initiated it. PayPal can investigate whether the transfer was rejected by your bank or held up on PayPal's end.
Do not initiate a second transfer while the first one is still pending. Wait until the first transfer completes or is clearly cancelled before trying again, or you may end up with duplicate transfers.
Transfer limits and how they work
PayPal sets a daily transfer limit and sometimes a monthly limit based on your account age, history, and how much money typically moves through your account. A brand-new PayPal account might have a daily limit of $500, while an established account with years of activity might have a daily limit of $5,000 or higher. PayPal does not publish exact limits because they vary by account.
To find your limit, go to your Wallet, select your bank account, and try to initiate a transfer. PayPal will show you the maximum amount you can transfer that day. If you need to transfer more than your limit allows, you can split it across multiple days or contact PayPal to request a limit increase (though there is no may provide they will grant it).
Limits reset daily at midnight in your time zone. If you hit your limit on Monday, you can transfer again on Tuesday.
Transfers from PayPal Credit and PayPal Balance
You can only transfer money from your PayPal Balance (money you have received or added to PayPal) to your bank account. If you have a PayPal Credit line, you cannot transfer that credit directly to your bank. PayPal Credit is a line of credit you can use to make purchases; it is not cash in your account.
If you have received money as a PayPal transfer from someone else, that money goes into your PayPal Balance and can be transferred to your bank immediately. If you have sold something on eBay or another platform and PayPal holds the money in a pending status, you usually cannot transfer it until the transaction is complete and the money is released to your Balance.
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. 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 through your bank.
What happens if I transfer money to the wrong bank account?
If you linked the wrong account by mistake, contact PayPal immediately before the transfer completes. If the transfer has already been sent, PayPal cannot recall it. You will need to contact the bank that received the money and ask them to reverse it, which may take several days or may not be possible if the account holder has already withdrawn the funds.
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, if the money in your PayPal account came from selling goods or services, that income may be taxable depending on the amount and your location. PayPal reports large transactions to the IRS, so keep records of what the money was for.
Can I set up automatic transfers from PayPal to my bank?
PayPal does not offer automatic recurring transfers. You must initiate each transfer manually. However, you can transfer money as often as you want (subject to your daily limit), so you can transfer weekly or monthly if that works for your situation.
Why is my transfer taking longer than three business days?
Delays usually happen because of weekends or holidays (PayPal only processes on business days), or because your bank is reviewing the transfer for fraud. Large transfers or transfers to new accounts are more likely to be held. Contact your bank to ask if they are holding the transfer, and contact PayPal if it has been more than five business days.