The basic steps to send a PayPal payment
To send money through PayPal, log into your account, click "Send & Request" at the top of the page, enter the recipient's email address or phone number, type the amount, and click "Send Money Now". The recipient gets a notification and can accept the payment into their PayPal account or, if they don't have one, through a direct bank transfer PayPal arranges.
The whole process takes about two minutes. The recipient sees the money in their PayPal balance immediately if they have an account; if they don't, PayPal sends them a link to claim it, and they have 30 days to do so. After 30 days, the money returns to your account.
PayPal charges no fee when you send money to friends and family using your PayPal balance or a linked bank account. If you send from a credit or debit card, PayPal charges a small fee (currently 2.2% plus $0.30 in the US, though this varies by country). Goods and services payments—when you're paying a business—use a different process and carry their own fees.
Key Takeaways
- Sending money to friends and family through PayPal is free if you use your PayPal balance or a linked bank account.
- The recipient gets the money in their PayPal account instantly if they have one, or receives a claim link if they don't.
- You need either the recipient's email address or phone number to send a payment.
- Money sent to someone without a PayPal account is held for 30 days; after that it returns to you automatically.
What you need before you send
Your PayPal account must be verified before you can send money. Verification means PayPal has confirmed your identity and linked at least one payment method—a bank account, debit card, or credit card. If you just created your account, you may see a message asking you to verify; follow the prompts, which usually involve confirming your email and adding a payment method.
You also need the recipient's email address or phone number. PayPal uses one of these to find their account or, if they don't have one, to send them a notification. A phone number works only if it's registered to a PayPal account in the same country as yours.
Make sure you have money available to send. If you're sending from your PayPal balance, the balance must cover the amount. If you're sending from a linked bank account, PayPal will pull the money at the time of the transfer, so your bank account must have sufficient funds.
Sending to someone with a PayPal account versus without one
If the recipient has a PayPal account, the money lands in their account balance within seconds. They can then spend it through PayPal, transfer it to their own bank account, or leave it sitting there. They don't have to do anything to receive it—PayPal notifies them, and the money is theirs.
If the recipient doesn't have a PayPal account, PayPal sends them an email or SMS with a link. They have 30 days to click that link, create an account (or log into an existing one), and claim the money. During those 30 days, the money is held by PayPal. If they don't claim it within 30 days, PayPal returns it to your account automatically, and you'll see a notification that the payment was unclaimed.
Sending to someone without an account takes the same two minutes as sending to someone with one. The only difference is the waiting period on their end. There's no extra fee for sending to an unverified recipient.
How to choose your payment method
When you send money, PayPal defaults to your PayPal balance if you have one. If your balance is too low or empty, PayPal asks which payment method you want to use instead. You can also manually select a different method before you hit send.
Use your PayPal balance or a linked bank account to avoid fees. Credit and debit cards trigger a 2.2% plus $0.30 fee (in the US; other countries have different rates). If you're sending $50, a credit card costs you about $1.40 extra. For $200, it's about $4.70. The fee is deducted from the amount you send, so the recipient gets less than you intended unless you account for it.
If you don't have a PayPal balance and don't want to link a bank account, a credit or debit card is your only option—but budget for the fee. If you're sending regularly, linking a bank account once saves you money on every future transfer.
What happens after you send
Once you click "Send Money Now", PayPal processes the payment immediately. You'll see a confirmation screen with a reference number, and PayPal sends you an email receipt. The money leaves your account right away if you sent from your balance; if you sent from a bank account, PayPal pulls the funds within one to three business days, depending on your bank.
The recipient gets a notification—email, SMS, or both, depending on their PayPal settings. If they have a PayPal account, the money is in their account and ready to use. If they don't, they see a link to claim it. You can check the status of any payment by going to your Activity page and clicking on the transaction.
If the recipient's email or phone number is wrong, PayPal still processes the payment but sends the notification to the wrong address. The money sits unclaimed for 30 days, then returns to you. If this happens, you can resend to the correct address.
Canceling or disputing a payment
You can cancel a payment only if the recipient hasn't claimed it yet. Go to your Activity page, find the transaction, and click "Cancel". If the recipient has already accepted the payment into their account, you cannot cancel it through PayPal's system. Your only option then is to contact the recipient directly and ask them to send the money back, or to file a dispute if you believe the payment was unauthorized or fraudulent.
To file a dispute, go to your Resolution Center, click "Report a Problem", and select the transaction. Explain why you're disputing it—for example, you didn't authorize it, or the recipient agreed to return it and hasn't. PayPal investigates and makes a decision, usually within 10 business days. If PayPal rules in your favor, the money is returned to your account.
Disputes are harder to win if you sent the money intentionally to someone you know. PayPal's protection is stronger for goods and services payments or unauthorized transactions. If you sent money to a friend and they won't return it, a dispute is unlikely to succeed; your recourse is to ask them directly or pursue it outside PayPal.
Common problems and how to fix them
The recipient says they didn't get the money. First, check your Activity page to confirm the payment went through and see its status. If it shows "Completed", the money reached PayPal's system. Ask the recipient to check their email (including spam) for a PayPal notification. If they have a PayPal account, the money should be in their balance; if they don't, they need to click the claim link. If they still can't find it after 24 hours, contact PayPal support with the transaction reference number.
You sent to the wrong email address. If the recipient hasn't claimed the money yet, cancel the payment and resend to the correct address. If they have claimed it, you'll need to contact them and ask them to return it. PayPal cannot redirect an already-claimed payment.
Your payment is pending. Payments usually complete instantly, but occasionally PayPal holds a payment for review—usually if it's your first transfer, the amount is unusually large, or there's a security flag. PayPal sends you an email explaining the hold and how long it will last, typically 24 hours to a few days. The recipient can see the payment is coming but can't access it until the hold lifts.
PayPal declined your payment method. This happens if your card or bank account has insufficient funds, is expired, or has been flagged for fraud. Update your payment method in your PayPal settings or try a different one. If the problem persists, contact your bank or card issuer to ask if they're blocking PayPal transactions.
Frequently Asked Questions
Can I send money to someone in another country?
Yes, but only to certain countries. PayPal's coverage varies by region. Go to PayPal's website and check their list of supported countries. If the recipient's country is supported, you can send money the same way—using their email or phone number. International transfers may take longer (up to a few business days) and may have different fees depending on the destination country.
What's the maximum amount I can send?
PayPal's limits depend on your account age, verification status, and transaction history. New accounts have lower limits; as you use PayPal, your limits increase. You can check your sending limit in your Account Settings under "Limits". If you hit your limit, you can still send money, but PayPal may hold it for review or ask you to verify additional information.
Do I need the recipient's real name to send money?
No. PayPal only needs an email address or phone number. The recipient's name is not required to complete the transfer. However, if you want to make sure you're sending to the right person, you can ask them for their email or phone number associated with their PayPal account and verify it matches before you send.
Can I send money if my PayPal account is limited or restricted?
No. If PayPal has limited your account due to suspicious activity or policy violations, you won't be able to send money until the restriction is lifted. PayPal will tell you why your account is limited and what steps you need to take to restore it. This usually involves verifying your identity or providing additional information.
What if I accidentally sent money to a scammer?
Contact PayPal immediately through your Resolution Center and file a dispute. Explain that you were scammed or that the payment was unauthorized. PayPal will investigate, but recovery is not may provide, especially if the scammer has already withdrawn the money. Report the scam to the Federal Trade Commission at reportfraud.ftc.gov as well. In the future, be cautious about sending money to people you don't know or haven't verified through other means.