The fastest way to transfer money from PayPal to your bank account
You can move money from PayPal to a linked bank account in two to three business days using a standard transfer, or in one business day using PayPal's expedited option. The standard transfer is free; the one-day transfer costs 1.75% of the amount you're sending, with a minimum fee of $0.25.
Before you transfer anything, you need to link your bank account to PayPal and confirm it. PayPal will deposit two small amounts (usually under $1 each) into your account within one to two business days, and you'll enter those amounts back into PayPal to verify ownership. Only after that confirmation can you move money out.
Once your account is confirmed, you initiate the transfer from PayPal's wallet or money movement section, choose your linked bank account, pick your speed, and confirm. The money lands in your bank account on the timeline you selected—not in PayPal's account, but in the actual checking or savings account you linked.
Key Takeaways
- You must link and confirm a bank account with PayPal before any transfer can happen, which takes one to two business days for the verification deposits alone.
- Standard transfers to a confirmed bank account take two to three business days and cost nothing; one-day transfers cost 1.75% of the amount.
- The money goes directly to your bank account, not to a PayPal debit card or PayPal balance—make sure you're transferring out, not moving money between PayPal products.
- Transfers initiated on weekends or holidays begin processing the next business day, so timing matters if you need the money by a specific date.
How to link your bank account to PayPal for the first time
Go to your PayPal account settings and find the "Wallet" or "Banks and Cards" section (the exact name varies by whether you're on desktop or mobile). Select "Link a Bank Account" and enter your bank's routing number, your account number, and the account type (checking or savings). PayPal will ask you to confirm the bank name and your name on the account.
Within one to two business days, PayPal deposits two small amounts into that account—typically between $0.01 and $0.99 each. Check your bank statement for these deposits. Go back to PayPal, find the pending bank account in your wallet, and enter both amounts exactly as they appear. Once you confirm them, the account is linked and ready to use for transfers.
If you don't see the deposits after two business days, your bank may be blocking them or PayPal may not have the correct routing number. Contact your bank first to ask if PayPal deposits are being filtered; if not, remove the account from PayPal and try adding it again with the routing number from your bank's website rather than from memory.
Initiating a standard transfer (two to three business days)
Open PayPal and go to your wallet or money section. Look for "Transfer Money" or "Move Money" (the button name depends on your device and PayPal's current interface). Select "Transfer to Your Bank" and choose the linked bank account you want the money to go to.
Enter the amount you want to send. PayPal will show you the arrival date—typically two to three business days from the date you initiate the transfer. Confirm the amount and the account, review the summary, and submit. You'll receive a confirmation number and an email receipt.
The money does not leave your PayPal balance immediately in all cases. Depending on your account history and the amount, PayPal may hold the transfer for review for up to 24 hours before releasing it to your bank. If that happens, you'll see a note in your transaction history. Once released, it follows the two to three business day timeline to your bank.
Using the one-business-day transfer option
PayPal offers an expedited transfer that arrives in one business day instead of two to three. The cost is 1.75% of the amount transferred, with a minimum fee of $0.25. So if you transfer $100, you pay $1.75; if you transfer $20, you still pay at least $0.25.
The process is identical to a standard transfer, except you select the one-day option when you choose your transfer speed. PayPal will show you the fee before you confirm, so you know the exact cost. The one-day clock starts when PayPal processes the transfer, not when you initiate it, so transfers requested after business hours or on weekends still begin on the next business day.
One-day transfers are useful when you need cash quickly—for example, if you sold something on eBay and need to pay a bill the next day. For routine transfers where you have time, the standard free option is the better choice.
What happens if your transfer doesn't arrive on time
If a standard transfer doesn't show up in your bank account after three business days, or a one-day transfer doesn't arrive after one business day, log into PayPal and check the transaction history. Look for the transfer and see what status it shows—"completed," "pending," "on hold," or "failed."
If it shows "completed," the money has left PayPal and your bank is responsible for posting it. Contact your bank's customer service and provide them with the transfer confirmation number from PayPal. Banks sometimes delay posting even after receiving funds, especially if the transfer arrived after their daily cutoff time or on a weekend. Your bank can tell you whether the money arrived and when it will post to your account.
If the transfer shows "pending" or "on hold" in PayPal, it hasn't left yet. This usually means PayPal is reviewing the transaction for fraud or unusual activity. Wait 24 hours and check again. If it's still on hold after 24 hours, contact PayPal's support through the Resolution Center in your account.
If the transfer shows "failed," PayPal will return the money to your PayPal balance automatically. The most common reasons are an incorrect routing number, a closed bank account, or a mismatch between the name on your PayPal account and the name on your bank account. Remove the bank account from PayPal, double-check the routing number and account number on your bank statement, and add it again.
Transfers from a PayPal debit card versus your PayPal balance
PayPal offers a debit card that draws from your PayPal balance. If you have both a PayPal balance and a linked bank account, make sure you're transferring from your PayPal balance to your bank account, not using the debit card to withdraw cash (which may carry ATM fees).
To transfer from your PayPal balance, go to your wallet, select "Transfer Money," and choose your linked bank account as the destination. Do not select the PayPal debit card. If you use the debit card at an ATM, you may be charged a fee by the ATM operator or PayPal, depending on your account type and the ATM network.
If you don't have a PayPal balance but only received money as a payment or refund, that money sits in your PayPal account until you transfer it out or spend it. You cannot transfer money you don't have, so if your PayPal balance shows $0, you have nothing to move to your bank.
Timing and business day rules for transfers
PayPal counts business days as Monday through Friday, excluding federal holidays. If you initiate a transfer on Friday afternoon, it may not begin processing until Monday. If you initiate one on a holiday, processing starts the next business day. This matters most for one-day transfers, where the timing can shift your arrival date by a full day.
Your bank also counts business days the same way. Even if PayPal releases your transfer on a Friday, your bank may not post it until Monday. Some banks post transfers in real time during business hours; others batch them once a day at the end of the business day. Check your bank's website or call to ask when they post ACH transfers (which is what PayPal uses).
If you need money by a specific date, initiate the transfer at least one business day earlier than you need it. For one-day transfers, initiate it two business days before if the deadline falls on a Monday or after a holiday weekend.
Frequently Asked Questions
Can I transfer money from PayPal to someone else's bank account?
No. PayPal transfers go only to a bank account linked to your own PayPal account. To send money to someone else's bank account, you would need to send them money through PayPal's "Send Money" feature, and they would receive it in their PayPal account, not their bank. They would then transfer it to their own bank account separately.
What if I don't have a bank account yet?
You cannot transfer money from PayPal without a linked bank account. Your options are to open a checking or savings account at a bank or credit union, or to use PayPal's debit card to withdraw cash at an ATM (though this may carry fees). Some online banks open accounts in minutes and accept transfers immediately.
Do I pay taxes on money I transfer from PayPal to my bank?
Transferring money from PayPal to your bank is not a taxable event—you're moving money you already earned or received. However, the original income or payment that landed in PayPal may be taxable depending on how you earned it. If you sold items or provided services, that income is taxable regardless of whether it sits in PayPal or your bank.
Can I cancel a transfer after I've started it?
If the transfer is still "pending" in PayPal, you can cancel it and the money returns to your PayPal balance. Once it shows "completed," it has left PayPal and you cannot cancel it through PayPal. Contact your bank to ask if they can reverse an incoming ACH transfer, though most banks cannot reverse transfers that have already posted.
Why does PayPal say my bank account is not confirmed?
Your bank account must pass the two-deposit verification before you can transfer money. If you linked the account but never confirmed the deposits, it will stay unconfirmed. Go back to your wallet, find the pending account, and enter the two deposit amounts from your bank statement. If you never received the deposits, wait two business days and check again, or remove and re-add the account.