PayPal transfers to your bank account take one to three business days, depending on your bank and whether you pay a fee
PayPal holds your balance in a digital wallet. To get that money into your actual bank account, you initiate a transfer through PayPal's interface, and PayPal sends it to the bank account you have linked. The speed and cost depend on which transfer method you choose: standard transfers are free but slower, while instant transfers cost a small percentage of the amount you send.
You need a bank account already linked to your PayPal account before you can transfer. If you have not done this yet, you will add it during the transfer process, but PayPal will verify the account first—a step that can take a few days—before money can move.
Key Takeaways
- Standard transfers from PayPal to your bank account are free and take one to three business days, depending on your bank's processing speed.
- Instant transfers cost between 1.5% and 2% of the amount transferred and arrive within 30 minutes on most business days.
- You must link your bank account to PayPal before transferring; new accounts require verification, which takes a few days.
- Transfers do not include weekends or federal holidays in their timeline, so a Friday transfer may not arrive until Tuesday.
- If a transfer fails or is delayed, check that your bank account information is correct and that you have not hit any PayPal or bank limits on transfers.
How to set up your bank account in PayPal
Log into your PayPal account on the web or in the app. Go to Wallet (or Account on mobile), then select Banks and Cards or Linked Banks. Click Link a Bank Account and enter your routing number, account number, and account type (checking or savings).
PayPal will then make two small test deposits to your bank account—usually between $0.01 and $0.99 each. These deposits appear within two to three business days. Once they land, you return to PayPal and confirm the exact amounts of both deposits. This verification step proves you own the account. After confirmation, your bank account is active and you can transfer money.
If you already have a bank account linked, you can skip this step and move straight to initiating a transfer.
Standard transfers: free but slower
A standard transfer is free and takes one to three business days. The exact timeline depends on your bank's processing speed—some banks credit transfers the next business day, while others take the full three days. PayPal's part is usually done within 24 hours; the delay is on your bank's end.
To initiate a standard transfer, go to Wallet, select your bank account, and click Transfer Money. Enter the amount, confirm the bank account, and submit. PayPal will show you an estimated arrival date based on your bank's typical speed. The transfer is not reversible once submitted, so double-check the amount and account before you confirm.
Standard transfers do not process on weekends or federal holidays. If you submit a transfer on Friday evening, it will not arrive until Monday at the earliest, and may not clear until Tuesday or Wednesday depending on your bank.
Instant transfers: faster but with a fee
Instant transfers move money within 30 minutes on most business days and cost between 1.5% and 2% of the amount you transfer. For example, transferring $100 costs $1.50 to $2.00. The exact percentage varies based on your account history and PayPal's current rates.
To use instant transfer, go to Wallet, select your bank account, and look for the Instant Transfer option. Enter the amount, review the fee, and confirm. The money lands in your bank account within 30 minutes if you submit between 8 a.m. and 11 p.m. ET on a business day. Transfers submitted outside these hours or on weekends will process the next business day.
Not all bank accounts are may be able to access for instant transfer. PayPal will tell you during the transfer process if your bank does not support it. If your bank is not may be able to access, you can only use standard transfer.
What to do if a transfer is delayed or fails
If a standard transfer does not arrive within three business days, log into PayPal and check the transfer status in your activity or transaction history. The status will show whether PayPal sent it or whether it is still pending. If it shows as sent, contact your bank—the delay is on their end, not PayPal's.
If the transfer shows as failed or pending after three business days, the most common cause is incorrect bank account information. Verify that your routing number and account number are correct in PayPal. If they are wrong, delete the account and re-link it with the correct details. You cannot edit an existing bank account in PayPal; you must remove it and add it again.
Another common reason for failure is hitting a transfer limit. PayPal has daily and monthly limits on how much you can transfer, and your bank may have its own limits as well. Check your PayPal account settings under Limits to see whether you have hit a cap. If you have, wait until the limit resets (usually the next day or month) before trying again.
Fees and limits on PayPal transfers
Standard transfers are always free. Instant transfers cost 1.5% to 2% of the amount transferred. PayPal does not charge a fee for linking a bank account or for failed transfers.
PayPal's transfer limits vary by account age and history. New accounts may have lower daily limits—sometimes as low as $500 per day—while established accounts can transfer more. Your bank may also set its own limits on incoming transfers. If you are transferring a large amount, check both PayPal's limits (in your account settings under Limits) and your bank's policies before you submit.
If you hit a limit, you can transfer again once the limit resets. Daily limits usually reset at midnight ET, and monthly limits reset on the first of the month.
Transfers from PayPal Credit or PayPal Balance
You can only transfer money that sits in your PayPal Balance—the money you have received from sales, refunds, or transfers from other people. If you have a PayPal Credit line (a line of credit PayPal offers), you cannot transfer that balance to your bank. PayPal Credit is meant for purchases, not cash transfers.
If you have both a PayPal Balance and a PayPal Credit balance, transfers will pull from your PayPal Balance first. To check which balance you have, go to Wallet and look at the breakdown of your account. Your PayPal Balance is the money you own; PayPal Credit is borrowed money.
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 account. If you want to send money to another person, use PayPal's Send Money feature to transfer to their PayPal account or email address. They can then transfer it to their own bank account.
What happens if I transfer money to the wrong bank account?
Once a transfer is submitted, you cannot cancel it. If you sent it to the wrong account, contact PayPal's support team immediately with the transaction details. They may be able to recall the transfer if it has not yet been processed by your bank, but this is not may provide. If the money has already arrived at the wrong bank, you will need to contact that bank to request a reversal.
Why is my transfer still pending after three days?
Check PayPal's transaction history to confirm PayPal sent the transfer. If it shows as sent, your bank is holding it—contact your bank directly. If it shows as pending in PayPal, verify your bank account information is correct. Incorrect routing or account numbers will cause transfers to fail or hang indefinitely.
Do I pay taxes on money I transfer from PayPal to my bank account?
Transferring money from PayPal to your bank account is not a taxable event. However, the money you received in PayPal in the first place may be taxable income depending on how you earned it. If you received it from sales or services, you owe taxes on that income regardless of whether it sits in PayPal or your bank.
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 the app or website. Some third-party tools claim to automate this, but PayPal does not officially support them and using them may violate PayPal's terms of service.