The basic steps to transfer PayPal funds to your bank
To move money from PayPal to your bank account, log into PayPal, go to your Wallet, select your bank account, and choose how much to transfer. PayPal will ask you to confirm the amount and the receiving account. The transfer then takes 1 to 3 business days to arrive, depending on your bank.
You need a bank account linked to your PayPal account before you can transfer. If you haven't added one yet, go to Settings, select Linked Banks and Cards, and follow PayPal's steps to verify the account with your bank's login or with two small deposits PayPal sends to your account (which takes 1 to 2 business days to complete).
PayPal does not charge a fee for standard transfers to a linked bank account in the United States. Instant transfers to your debit card cost 1.5% of the amount you're moving, with a minimum fee of 25 cents.
Key Takeaways
- Standard transfers from PayPal to a linked bank account are free and take 1 to 3 business days.
- You must link and verify a bank account in PayPal settings before any transfer can happen.
- Instant transfers to a debit card cost 1.5% of the amount, but arrive within 30 minutes.
- Transfers initiated on weekends or holidays begin processing the next business day.
How to link a bank account to PayPal for the first time
Open PayPal on a computer or the mobile app and go to Settings (the gear icon). Select Linked Banks and Cards, then Add a Bank Account. PayPal will ask for your bank's name, routing number, and account number. You can find these on a check, your bank's website, or by calling your bank's customer service line.
After you enter this information, PayPal verifies the account in one of two ways. The faster method is to log into your bank's website through PayPal's secure connection—PayPal never sees your password. The slower method is to wait for two small deposits (usually between 1 and 2 cents each) to appear in your account, which takes 1 to 2 business days. Once they arrive, you enter the amounts in PayPal to confirm you own the account.
Some banks connect instantly through PayPal's partnership system, so verification happens right away. Others require the deposit method. If your bank doesn't appear in PayPal's list, you can still add it manually by entering your routing and account numbers.
Standard transfers versus instant transfers
Standard transfers are free and take 1 to 3 business days. PayPal processes them on business days only, so a transfer you start on Friday evening won't begin moving until Monday. The exact timing depends on your bank—some post transfers the same day they arrive, others take an additional day.
Instant transfers move money to a linked debit card within 30 minutes, but cost 1.5% of the amount you transfer, with a minimum charge of 25 cents. If you're moving $100, the fee is $1.50. If you're moving $10, the fee is 25 cents. Instant transfers work 24 hours a day, 7 days a week, including weekends and holidays.
Choose standard transfers if you can wait a few days and want to avoid fees. Choose instant transfers if you need the money quickly and the 1.5% fee is worth it to you. You can use instant transfers only to a debit card, not to a savings or checking account.
What to do if a transfer is delayed or doesn't arrive
If a standard transfer hasn't arrived after 3 business days, log into PayPal and check the transaction history in your Wallet. Look for the transfer and click on it to see its status. PayPal will show you whether it's still processing, pending, or completed on PayPal's end.
If PayPal shows the transfer as completed but your bank hasn't received it, contact your bank's customer service with the transfer date and amount. Your bank can trace the incoming transfer using PayPal's reference number, which appears in the transaction details. Banks sometimes hold transfers for fraud review, especially if the amount is large or the account is new.
If the transfer shows as failed or cancelled in PayPal, the money returns to your PayPal balance within 1 to 2 business days. Common reasons for failure are a closed or incorrect bank account, insufficient funds in PayPal, or a mismatch between the name on your PayPal account and the name on your bank account. Fix the problem and try again.
Limits on how much you can transfer at once
PayPal does not publish a single maximum transfer amount that applies to all users. Limits vary based on your account age, history, and verification status. New accounts typically have lower limits than established ones. Verified accounts (where you've confirmed your identity and linked a bank account) usually have higher limits than unverified accounts.
To find your specific limit, go to Settings, select Limits, and look for your transfer limit. If you need to transfer more than your limit allows, you can request an increase by contacting PayPal Support. PayPal may ask for additional verification, such as a photo ID or proof of address.
Some users report limits in the thousands per transfer, while others report limits in the tens of thousands. The only way to know your limit is to check your account or attempt a transfer and see what PayPal allows.
Transfers when your bank account information changes
If you close your bank account or switch banks, update your linked account in PayPal before you try to transfer again. Go to Settings, select Linked Banks and Cards, and remove the old account. Then add your new bank account and verify it using the same process as a first-time link.
If you transfer money to a closed bank account, the transfer will fail and the money returns to your PayPal balance. This usually happens within 5 to 10 business days, though it can take longer depending on your bank's processing speed. Once the money is back in PayPal, you can transfer it to your new account.
Do not transfer to an account in someone else's name. PayPal's terms of service prohibit this, and the transfer may be reversed or your account may be limited. Transfers must go to an account in the same name as your PayPal account.
Transfers from a PayPal business account
If you have a PayPal Business account, the transfer process is the same as a personal account. Log in, go to your Wallet, select your bank account, and choose the amount. Standard transfers are still free, and instant transfers still cost 1.5%.
Business accounts may have different transfer limits than personal accounts. Check your Limits section in Settings to see what applies to your business account. Some business users report higher limits because they have more transaction history and verification.
If you receive payments through PayPal for goods or services, those funds land in your PayPal balance first. You then transfer them to your bank account using the same steps as any other transfer.
Frequently Asked Questions
Can I transfer PayPal money to someone else's bank account?
No. PayPal transfers go only to a bank account in the same name as your PayPal account. If you want to send money to another person, use PayPal's Send Money feature instead, which moves funds from your PayPal balance to their PayPal account or email address.
What happens if I transfer money but then dispute the transaction?
Once a transfer completes and the money reaches your bank, PayPal cannot reverse it. If you need the money back, you must contact your bank and request a reversal, which your bank may or may not honor. Avoid transferring money you're unsure about.
Do I pay taxes on transfers from PayPal to my bank account?
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 is taxable. PayPal reports payments over $20,000 and 200 transactions to the IRS on Form 1099-K.
Why does PayPal say my bank account is invalid?
This usually means the account number, routing number, or account name doesn't match your bank's records. Double-check all three against a recent check or your bank's website. If they match and PayPal still rejects it, call your bank to confirm the account is active and can receive transfers.
Can I cancel a transfer after I've started it?
If the transfer is still pending (hasn't completed yet), you can cancel it in your transaction history. Once it shows as completed, it's too late—the money is on its way to your bank and cannot be stopped through PayPal. Contact your bank if you need to reverse a completed transfer.