Yes, you can link your bank account to PayPal, and it's the most direct way to move money in and out
PayPal lets you connect a checking or savings account from any U.S. bank, credit union, or online bank. Once linked, you can use that account to fund payments, receive money, and transfer your PayPal balance back to your bank. The connection is encrypted and PayPal doesn't store your full account number—they use a secure token instead.
Linking takes about five minutes, but PayPal will verify the account by depositing two small amounts (usually under $1 each) into your bank account within one to two business days. You then confirm those amounts in your PayPal account to prove you own the bank account. Until you verify, you can receive money but cannot send payments or withdraw funds using that account.
Key Takeaways
- You need a valid U.S. bank account and your routing and account numbers to link to PayPal; the process takes about five minutes but verification takes one to two business days.
- Once verified, you can use your bank account to fund PayPal payments, receive money from other users, and transfer your PayPal balance back to your bank at no cost.
- PayPal does not charge a fee to link or use your bank account, but your bank may charge a fee if they consider the deposits or transfers unusual activity.
- If you forget your bank account details or your bank changes your routing number, you will need to remove the old account and add a new one before you can use it again.
- Transfers from PayPal to your bank account take one to three business days and are not instant, even if you pay for expedited service.
What information PayPal needs to link your account
Go to your PayPal account settings, select Wallet, then Link a bank account. PayPal will ask for your bank's name, your account type (checking or savings), your routing number, and your account number. You can find both numbers on the bottom left of any check, or by logging into your bank's website or calling their customer service line.
PayPal will also ask you to confirm your full name and address. These must match what your bank has on file. If your name or address has changed since you opened the account, update your bank's records first—PayPal's verification will fail if the information doesn't match exactly.
Do not use a money market account, investment account, or business account unless PayPal explicitly allows it for your account type. Most personal PayPal accounts only work with personal checking and savings accounts.
How verification works and why it takes time
After you enter your bank details, PayPal deposits two small amounts into your account. These appear as separate transactions in your bank account, usually within one to two business days. The deposits come from "PayPal" or a PayPal subsidiary name, so check your bank statement carefully if you don't see them right away.
Once the deposits show up in your account, return to PayPal and enter the exact amounts of both deposits. If you enter them correctly, your account is verified immediately. If you enter them wrong, PayPal lets you try again, but after multiple failed attempts you may need to wait 24 hours before trying again.
If the deposits don't arrive after three business days, your bank may have blocked them or your account information may be incorrect. Contact your bank to ask if they received any small deposits from PayPal. If they didn't, remove the account from PayPal and try adding it again with corrected information.
What you can do once your bank account is verified
A verified bank account becomes your default funding source for PayPal payments. When you send money to another PayPal user or pay a merchant, PayPal will pull the funds from your bank account instead of asking you to choose a payment method each time. You can change this in your wallet settings if you prefer to use a credit card or PayPal balance instead.
You can also transfer money from your PayPal balance back to your bank account. Go to Wallet, select Transfer Money, choose Transfer to your bank, enter the amount, and confirm. The transfer is free and takes one to three business days. PayPal does not offer instant transfers to bank accounts for free, though some account types may have paid expedited options.
If you receive money from another PayPal user, you can leave it in your PayPal balance or transfer it to your bank account using the same process. Money received stays in your PayPal account until you move it or spend it.
Fees and what your bank might charge
PayPal does not charge you to link a bank account, verify it, or transfer money to and from it. The verification deposits are free, and transfers out of PayPal to your bank are free. However, your bank may charge a fee if they see the verification deposits or transfers as unusual activity, especially if your account is new or has low activity.
Most banks do not charge for incoming transfers, but some online banks or credit unions have policies against frequent transfers. Check your bank's fee schedule or call them before linking to PayPal if you plan to transfer money regularly. If your bank does charge a fee, it will appear on your bank statement, not in PayPal.
If you use your bank account to fund a payment and your account doesn't have enough money, PayPal will decline the payment and may charge you a failed payment fee (usually $2 to $5, depending on your account history). Your bank may also charge an overdraft fee if PayPal tries to pull more money than you have available.
How to remove or replace a linked bank account
If you close your bank account, move to a new bank, or want to stop using PayPal with that account, go to Wallet, find the account, and select Remove. You can remove an account at any time. Once removed, PayPal can no longer pull money from that account or deposit transfers to it.
If your bank changes your routing number (which happens occasionally when banks merge or reorganize), you will need to remove the old account and add a new one with the updated routing number. PayPal will not automatically update routing numbers. Transfers to the old account will fail, so update it as soon as your bank notifies you of the change.
You can link multiple bank accounts to one PayPal account. This is useful if you have accounts at different banks or want to keep personal and business money separate. Set one as your default, and you can choose a different account each time you make a payment or transfer.
What to do if verification fails or takes too long
If the verification deposits don't arrive after three business days, check your bank statement carefully—they may appear under a different name or be pending. If you still don't see them, log into your bank's website and search for any transactions from "PayPal" or look at your pending transactions.
If the deposits genuinely didn't arrive, your bank may have blocked them. Some banks flag PayPal as a third party and require you to authorize it. Call your bank and ask if they received or blocked any deposits from PayPal. If they blocked them, ask how to allow PayPal transactions in the future.
If you entered the wrong routing or account number, remove the account from PayPal and add it again with the correct information. You will need to wait for new verification deposits, which can take another one to two business days.
Frequently Asked Questions
Can I link a savings account instead of a checking account?
Yes. PayPal accepts both checking and savings accounts. When you add the account, you will select the account type, and PayPal will route transfers accordingly. Transfers to a savings account take the same one to three business days as transfers to checking.
What happens if I link the wrong bank account by mistake?
If you entered the wrong account number or routing number, the verification deposits will go to the wrong account and you won't be able to verify. Remove the account from PayPal and add it again with the correct information. You will receive new verification deposits within one to two business days.
Can I use a joint bank account with PayPal?
Yes, as long as your name is on the account. PayPal verifies that your name matches the bank's records, but it does not check whether you are the sole owner. If your name is on the account, you can link it.
Do I have to keep my bank account linked to use PayPal?
No. You can remove your bank account at any time and use a credit card, debit card, or PayPal balance to make payments instead. However, if you want to transfer money out of PayPal to a bank account, you need at least one verified bank account linked.
How long does it take to transfer money from PayPal to my bank account?
Standard transfers take one to three business days. Weekends and bank holidays add to the timeline. If you transfer on a Friday evening, the money may not arrive until Tuesday or Wednesday. PayPal does not process transfers on weekends or holidays.