Yes, you can transfer money from PayPal to your bank account in most cases
PayPal lets you move money to a linked bank account through a few different routes, each with its own timeline and cost. A standard transfer takes three to five business days and costs nothing. An instant transfer arrives within 30 minutes but charges a flat fee (usually $0.25 to $2.00, depending on your account type and transfer size). You can also withdraw cash at an ATM using a PayPal debit card if you have one, or transfer to a linked prepaid card.
The speed and cost you choose depend on when you need the money and whether you want to pay for faster service. Most people use the free standard transfer unless they need cash the same day.
Key Takeaways
- Standard transfers from PayPal to a linked bank account are free and take three to five business days.
- Instant transfers cost a flat fee and arrive within 30 minutes, but the fee varies based on your account type and transfer amount.
- Your bank account must be linked to your PayPal account before you can transfer money to it.
- Transfers initiated on weekends or holidays may not begin processing until the next business day.
- If your transfer fails, PayPal will return the money to your PayPal balance within one business day.
How to link your bank account to PayPal
Before you can transfer money out, you need to add your bank account to PayPal. Log into your PayPal account, go to Wallet, and select Link a Bank Account. You will enter your routing number and account number (both appear on the bottom left of your checks). PayPal will then send two small deposits to that account, usually within one to two business days.
Once the deposits arrive, you go back to PayPal and confirm the two amounts. This verification step proves you own the account. After that, the account is linked and ready to use for transfers. You can link multiple bank accounts if you want, but you can only transfer to one at a time.
Standard transfer: free but slower
A standard transfer is the default option and costs nothing. The money leaves your PayPal balance and arrives in your bank account within three to five business days. The clock starts when PayPal processes your request, which happens on the same day if you initiate the transfer before a certain cutoff time (usually 7 p.m. Eastern). Transfers requested after that cutoff or on weekends begin processing the next business day.
The three to five day window is a range because it depends on your bank's processing speed, not just PayPal's. Some banks post transfers faster than others. If you initiate a transfer on a Friday afternoon, it may not start processing until Monday, so the money could arrive as late as Thursday or Friday of the following week.
Instant transfer: faster but with a fee
Instant transfer moves money to your bank account within 30 minutes. PayPal charges a flat fee for this service, which varies. For most personal accounts, the fee is $0.25 to $2.00 per transfer. The exact amount depends on your account history, the size of the transfer, and whether you have a PayPal Cash or Cash Plus account (which may have lower or waived fees for instant transfers).
To use instant transfer, select it as your option when you initiate the withdrawal. PayPal will show you the fee before you confirm, so you know the exact cost. The money goes to the same linked bank account you use for standard transfers. If the transfer fails for any reason, PayPal refunds the fee along with your money.
What happens if your transfer fails or gets stuck
A transfer can fail if your bank account information is wrong, your account is closed, or your bank rejects the deposit for another reason. PayPal will notify you by email if a transfer fails. The money returns to your PayPal balance within one business day, and you can try again with corrected information.
If a transfer seems stuck—you initiated it but do not see it in your bank account after the expected timeframe—check your PayPal transaction history first to confirm PayPal actually sent it. Then contact your bank to ask if the deposit is pending. If PayPal shows the transfer as complete but your bank has no record of it, PayPal's Resolution Center can investigate. Keep the transfer confirmation number from PayPal; your bank will ask for it.
Transfers on weekends and holidays
PayPal processes transfers on weekdays only. If you request a transfer on Saturday or Sunday, PayPal holds it until Monday morning and begins processing then. The same applies to federal holidays—your transfer will not start moving until the next business day. This means a Friday afternoon transfer might not arrive until the following Thursday or Friday, not the following Monday.
If you need money urgently and today is a weekend, instant transfer will not help you either, because banks do not process deposits on weekends. Your best option is to wait until Monday and use instant transfer then, or use a PayPal debit card to withdraw cash from an ATM if you have one linked to your account.
PayPal debit card and ATM withdrawals
If you have a PayPal Cash or Cash Plus account, you can request a PayPal debit card. This card lets you withdraw cash from ATMs without waiting for a bank transfer. ATM withdrawals are instant, though some ATMs charge a fee (usually $2 to $3) if they are not part of the network PayPal uses. You can also use the card to make purchases anywhere Mastercard is accepted.
The debit card is a separate step from bank transfers—you have to request it through your PayPal account settings, and it arrives by mail in seven to ten business days. Once you have it, you can use it immediately, but the card itself is not a substitute for a bank account transfer if you need the money to appear in your actual bank account for a bill payment or other reason.
Frequently Asked Questions
Can I transfer money from PayPal to someone else's bank account?
No, PayPal transfers only go to a bank account linked to your own PayPal account. To send money to another person's bank account, use PayPal's send money feature to transfer to their PayPal account, and they can then transfer it to their own bank. Alternatively, use a peer-to-peer payment app like Venmo or a wire transfer service.
What if I do not have a bank account—can I still use PayPal?
Yes. You can use PayPal to receive and send money, but you cannot transfer to a bank account if you do not have one. You can request a PayPal debit card and withdraw cash from ATMs, or leave the money in your PayPal balance and spend it through the app or card.
Is there a limit to how much I can transfer at once?
PayPal sets limits based on your account age and history. New accounts may have lower limits (sometimes $500 to $1,000 per transfer). As your account matures and you build a history, limits increase. Check your account settings under Limits to see your current transfer limit, or contact PayPal if you need to transfer more than your limit allows.
Do I pay taxes on money I transfer from PayPal to my bank account?
Transferring your own money from PayPal to your bank is not a taxable event. However, if the money in your PayPal account came from selling goods or services, that income is taxable. PayPal reports transactions to the IRS if they meet certain thresholds, so keep records of what the money was for.
Can I cancel a transfer after I have started it?
If you cancel before PayPal processes it, the money stays in your PayPal balance. Once PayPal has sent the transfer to your bank, you cannot cancel it through PayPal—you have to contact your bank and ask them to reverse the deposit, which they may or may not do depending on their policies.