Yes, you can transfer money from PayPal to a checking account in one to three business days
PayPal lets you send money to a linked checking account through their standard transfer feature. The money leaves your PayPal balance and arrives in your bank account as a regular deposit. Most transfers take one to three business days, though PayPal offers an instant transfer option for an extra fee.
You need a PayPal account with a verified identity, a U.S. checking account linked to that PayPal account, and enough money in your PayPal balance to cover the transfer. The process itself takes about two minutes on the PayPal app or website.
Key Takeaways
- Standard transfers from PayPal to checking take one to three business days and cost nothing.
- Instant transfers arrive within 30 minutes but charge a fee of 1.75% of the amount you send, with a $0.25 minimum.
- You must link your checking account to PayPal and verify your identity before you can transfer money out.
- PayPal holds some transfers for review, which can add a day or more; you can contact PayPal support to ask why.
- Money in PayPal's money market fund or held for disputes cannot be transferred until the hold is released.
How to link your checking account to PayPal
Open PayPal on the web or app and go to your Wallet or account settings. Select "Link a bank account" or "Add a bank account." Enter your bank's routing number and your account number (both appear on the bottom left of a check, or you can find them in your bank's app). PayPal will make two small test deposits to your account within one to two business days.
Check your bank account for those deposits—they will be labeled with a code. Go back to PayPal and enter the code amounts to confirm you own the account. Once verified, your checking account is linked and you can transfer money to it.
Standard transfer versus instant transfer
A standard transfer is free and takes one to three business days. PayPal processes it the same day you request it, but your bank takes one to three days to post the money to your account. This is the slowest option but costs nothing.
An instant transfer arrives in your checking account within 30 minutes, but PayPal charges 1.75% of the amount transferred, with a $0.25 minimum fee. If you transfer $100, the fee is $1.75. If you transfer $20, the fee is still $0.25. Instant transfers are available only to PayPal accounts in good standing with a verified identity and a linked debit card or checking account.
Choose standard transfer if you can wait a few days. Use instant transfer only if you need the money urgently and the fee is worth it to you.
When PayPal holds or delays a transfer
PayPal sometimes holds transfers for review before releasing them. This can add one or more days to the timeline. Holds happen most often when you transfer a large amount, transfer to a new bank account, or your account has unusual activity. PayPal does not always tell you why a transfer is held.
If your transfer is delayed, log into PayPal and check the status of the transfer in your transaction history. If it shows "pending" or "on hold," you can contact PayPal support through the app or website to ask why and whether it will be released. Provide the transfer date and amount. PayPal support can sometimes release a held transfer immediately, but not always.
Money you cannot transfer out of PayPal
Some PayPal balances have restrictions. Money held in PayPal's money market fund earns interest but cannot be transferred to a bank account until you move it back to your regular PayPal balance first. Money on hold for a dispute, chargeback, or seller protection claim cannot be transferred until the issue is resolved. Money from a refund that PayPal is processing may also be temporarily locked.
If you try to transfer money and PayPal says you do not have enough available balance, check your transaction history or account overview to see whether money is on hold. The hold notice will usually tell you when it will be released.
Fees and limits on transfers
Standard transfers to a U.S. checking account are free. Instant transfers cost 1.75% of the amount, with a $0.25 minimum. PayPal does not charge a fee for standard transfers no matter how much you send, but your bank may charge a fee for receiving deposits—check your bank's account terms.
PayPal does not publish a maximum transfer amount, but very large transfers may trigger a review hold. There is no daily or monthly limit published, though PayPal may restrict transfers on accounts with unusual activity. If you regularly transfer large amounts, contact PayPal support to ask whether limits apply to your account.
What to do if a transfer fails or goes to the wrong account
If a transfer fails, PayPal will return the money to your PayPal balance within one to three business days. Check your transaction history to see the failure reason—common reasons include a closed bank account, incorrect routing number, or a mismatch between the name on your PayPal account and the name on your bank account.
If the transfer went to the wrong account, contact PayPal support immediately with the transfer date, amount, and the account it went to. PayPal can sometimes reverse the transfer if the receiving bank has not yet processed it. If the money has already been deposited, you will need to contact the receiving bank to ask them to return it, which can take weeks. This is why it is important to double-check your bank account details before confirming a transfer.
Frequently Asked Questions
Can I transfer money from PayPal to someone else's checking account?
No. PayPal transfers go only to a checking account linked to your own PayPal account. To send money to someone else, use PayPal's "Send money" or "Pay friends" feature instead, which transfers money from your PayPal balance to their PayPal account or email address.
Why does my transfer say "pending" after three days?
PayPal's standard transfer usually completes in one to three business days, but weekends and bank holidays add time. If it has been more than three business days, the transfer may be on hold for review. Log into PayPal and check the transaction status. If it still shows pending, contact PayPal support with the transfer date and amount.
Can I cancel a transfer after I start it?
If the transfer is still pending, you may be able to cancel it through your PayPal transaction history. Once the money has been deposited into your bank account, you cannot cancel it through PayPal—you would need to withdraw it from your bank account yourself or contact your bank.
What if my bank account name does not match my PayPal name exactly?
Minor differences (like "Robert" on PayPal and "Bob" on your bank account) usually do not cause problems. Major differences or mismatches may cause the transfer to fail. If you are unsure, contact your bank to confirm the exact name on your account, then update your PayPal account information to match before transferring.
Does PayPal report transfers to the IRS?
PayPal reports certain transactions to the IRS on Form 1099-K if you receive money as a seller or through business activity. Transfers of your own money from PayPal to your checking account are not reported as income because the money is already yours. If you have questions about tax reporting, consult a tax professional.