The basic steps to send a payment on PayPal

Open PayPal on your phone or computer and sign in. Click or tap the Send Money button (or Pay on some versions). Enter the recipient's email address, phone number, or PayPal username. Type the amount you want to send, choose whether it's a personal payment or a bill payment, add a note if you want to, and click Send. The money leaves your PayPal account immediately, though it may take one to three business days to reach the recipient's bank account if they don't have a PayPal account.

If you're paying a bill or a business, you may see a different flow. Some companies have a Pay with PayPal button on their website or invoice. Click that button, and PayPal will open in a new window. Sign in if you're not already signed in, review the amount and recipient, and click to confirm. You'll be sent back to the company's website once the payment is complete.

For recurring payments—like a subscription or monthly bill—you can set up automatic payments. Go to your PayPal settings, find Automatic Payments or Subscriptions, and add the merchant. You'll authorize PayPal to charge you on a schedule you choose. You can cancel or change these at any time from the same menu.

Key Takeaways

  • PayPal payments to other PayPal users arrive instantly, but transfers to a bank account take one to three business days.
  • You can send money to anyone with an email address or phone number, even if they don't have a PayPal account yet.
  • Paying a bill through a company's website using their Pay with PayPal button is faster than entering your card details manually.
  • Automatic payments for subscriptions or monthly bills can be set up in your PayPal settings and canceled anytime.

What payment method PayPal pulls from

When you send money or pay a bill, PayPal draws from your PayPal balance first. If your balance is too low, it uses the payment method you've set as your primary—usually a linked bank account, debit card, or credit card. You can change which payment method PayPal uses by going to Wallet or Payment Methods in your settings and marking a different one as primary.

Using a bank account or debit card is free for most personal payments. Credit cards may trigger a fee—PayPal charges a percentage (usually around 2.2% plus a fixed amount) when you pay with a credit card for goods or services, though personal payments between individuals are free. If you're paying a bill or business invoice, check whether the company passes that fee to you or absorbs it themselves.

Your PayPal balance itself comes from money people send you, refunds, or money you transfer in from your bank. You can keep money in your PayPal account indefinitely, or transfer it back to your bank whenever you want—transfers to your bank take one to three business days.

Sending money to someone without a PayPal account

You can send money to anyone with just an email address or phone number, even if they don't have PayPal yet. Enter their email or phone number in the Send Money form, type the amount, and send. PayPal will email or text them a link to claim the money. They have 30 days to open a PayPal account and accept it. If they don't claim it within 30 days, the money returns to your account automatically.

Once they claim the money, it goes into their PayPal account. If they want to move it to their bank, they can do that from their own PayPal wallet—it takes one to three business days. Some people leave money in PayPal to use for future purchases or to send to others.

Paying invoices and bills through PayPal

If a business sends you an invoice through PayPal, you'll receive an email with a link. Click it, review the amount and what you're paying for, and click Pay Now. You'll be asked to sign in to PayPal and confirm the payment method. The payment goes through immediately, and you'll get a receipt.

For bills that aren't sent through PayPal—like utilities, insurance, or rent—you can use PayPal's Bill Pay feature if your bank offers it, or you can send a payment directly to the business if they have a PayPal.me link or business account. Some landlords and utility companies accept PayPal; others don't. Check their website or call to confirm before you try to pay.

If you're paying a bill through a company's website and see a Pay with PayPal button, use it. You won't have to type your card number or address—PayPal handles that for you, and the payment is faster and more secure than entering your details manually.

Fees and what they depend on

Personal payments between individuals are free when you use a bank account or debit card. If you use a credit card to send money to another person, PayPal charges a fee—usually around 2.2% of the amount plus a fixed fee (the fixed amount varies by country). Payments for goods and services always have a fee, even if both people have PayPal accounts.

International payments cost more. If you're sending money outside the United States, PayPal charges a percentage of the amount plus a fixed fee, and the exchange rate may not be the best available. For large international transfers, a wire transfer or a service like Wise may be cheaper.

Receiving money is free for personal payments. If you're a business receiving payments for goods or services, PayPal takes a percentage (usually around 2.9% plus a fixed amount per transaction). This fee comes out of what you receive, so if someone pays you $100, you might get $97 after PayPal's cut.

When a payment fails or gets stuck

If your payment fails, PayPal will tell you why—usually because your card was declined, your bank rejected it, or there wasn't enough money in your account. You can try again immediately with a different payment method. Go back to the payment and select a different card or bank account from your wallet.

If you sent money to someone and it's been more than three business days, check the transaction in your Activity or History section. If it shows as pending, it's still processing. If it shows as sent but the recipient says they didn't get it, contact PayPal support with the transaction ID (a long number PayPal gives you for every payment). They can investigate whether the money reached the recipient's account or if it got stuck in between.

If you sent money to the wrong person or want to cancel a payment, act fast. If the recipient hasn't claimed it yet, you can cancel it from your activity and the money returns to your account. If they've already claimed it, you'll need to contact them and ask for a refund—PayPal can't force them to send it back.

Disputing a payment if something went wrong

If you paid for something and didn't receive it, or the item arrived damaged or not as described, you can open a dispute through PayPal. Go to your activity, find the transaction, and click Report a Problem or Dispute Resolution. Describe what happened and upload any proof—screenshots of the listing, photos of the damage, messages from the seller, anything that shows the problem.

PayPal gives the seller a chance to respond, usually within a few days. If they don't respond or their response doesn't resolve it, PayPal will make a decision. If you win, the money goes back to your account. This process typically takes two to four weeks. While it's happening, the money stays with PayPal, not with the seller.

For payments sent as gifts or personal transfers to friends, disputes are harder to win. PayPal treats these as final, so only use the personal payment option if you trust the person. For purchases from businesses or strangers, always use Goods and Services instead of Friends and Family, because goods and services payments come with buyer protection.

Frequently Asked Questions

How long does it take for someone to receive money I send through PayPal?

If they have a PayPal account, the money arrives instantly. If they don't have PayPal yet, they get an email or text with a link to claim it, and they have 30 days. Once they claim it and it's in their PayPal account, they can transfer it to their bank in one to three business days if they want cash.

Can I cancel a payment after I send it?

Only if the recipient hasn't claimed it yet. If you sent it to someone without a PayPal account and they haven't opened the link within 30 days, it cancels automatically and the money returns to you. If they've already claimed it or have a PayPal account, you can't cancel—you'd have to ask them to send it back.

What's the difference between sending money as a personal payment and as a payment for goods and services?

Personal payments are free and have no buyer protection—if something goes wrong, PayPal won't help you get your money back. Payments for goods and services have a fee but come with buyer protection, so if you don't receive what you paid for, you can dispute it and PayPal will investigate.

Is it safe to pay bills with PayPal?

PayPal encrypts your payment information and doesn't share your card or bank details with the business you're paying. However, not all bill collectors accept PayPal, so check their website first. If a company asks you to pay through PayPal in an unusual way—like sending money as a gift—that's a red flag for fraud.

What happens if I link the wrong bank account to PayPal?

PayPal will try to pull money from that account when you make a payment. If the account doesn't have enough money or the account number is wrong, the payment will fail. Go to your payment methods, remove the wrong account, and add the correct one. You can then retry the payment.