Yes, you can transfer money from PayPal to your bank account
PayPal lets you move money out to a linked bank account, debit card, or prepaid card. The transfer goes from your PayPal balance to the financial institution you've connected. Most transfers take one to three business days, though the exact timing depends on your bank and which transfer method you choose.
You need a PayPal account with a balance, a linked bank account or card, and enough money to cover the transfer. There are no fees to move money to your own bank account or debit card through PayPal's standard transfer option, though faster methods cost extra.
Key Takeaways
- Standard transfers from PayPal to your bank account take one to three business days and have no fee.
- Instant transfers to a debit card cost between 25 cents and $2, depending on the amount, and land in your account within 30 minutes.
- You must link your bank account or debit card to PayPal before you can transfer money out.
- PayPal holds new bank accounts for up to 21 days before allowing transfers, to verify the account is real and in your name.
How to link your bank account to PayPal
Open PayPal on your phone or computer and go to your Wallet or Account settings. Select "Link a bank account" or "Add bank account." PayPal will ask for your routing number and account number — you can find both on a check or by logging into your bank's website. Enter your account type (checking or savings) and confirm.
PayPal will then send two small deposits to your bank account, usually within one to two business days. Once you see those deposits, go back to PayPal and enter the exact amounts to verify the account is yours. Until you verify, PayPal will not let you transfer money out.
If you want to skip the verification wait, you can link a debit card instead. PayPal verifies debit cards instantly by charging a small amount and asking you to confirm it. This lets you start transferring money the same day.
Standard transfers: free but slower
A standard transfer moves money from your PayPal balance to your linked bank account at no cost. The money leaves your PayPal account right away, but your bank takes one to three business days to post it. Weekends and bank holidays add extra time — a transfer you start on Friday afternoon might not show up until Wednesday.
Standard transfers work for bank accounts only, not debit cards. If you linked a debit card, you will need to use PayPal's instant transfer option instead, which costs money.
To start a standard transfer, open PayPal, go to your Wallet, and select "Transfer money." Choose "Transfer to your bank" and enter the amount. PayPal will show you the expected arrival date before you confirm. Once you hit confirm, the transfer cannot be cancelled — the money is on its way.
Instant transfers: fast but with a fee
PayPal's instant transfer option moves money to a linked debit card in minutes, usually within 30 minutes. The cost ranges from 25 cents to $2 depending on the amount you transfer. Transfers under $10 cost 25 cents; transfers from $10 to $200 cost $1; transfers over $200 cost $2.
Instant transfers only work with debit cards, not bank accounts. If you have only a bank account linked, you cannot use this option. You also cannot use instant transfer if your PayPal account is new or if PayPal has flagged your account for review.
To use instant transfer, go to your Wallet in PayPal, select "Transfer money," and choose "Instant transfer to your debit card." Pick which debit card if you have more than one linked, enter the amount, and confirm. The money should land in your account within 30 minutes on any day of the week, including weekends.
What happens if your transfer fails or takes too long
If a standard transfer does not arrive after five business days, contact your bank first. Ask them to search for the transaction using the reference number PayPal gave you when you started the transfer. Sometimes the money arrives but your bank posts it under a different name or description, and you might miss it in your account history.
If your bank confirms they never received it, go back to PayPal and open a case in the Resolution Center. PayPal will investigate and either resend the money or refund it to your PayPal balance. This usually takes five to ten business days.
Instant transfers that fail are refunded to your PayPal balance immediately. PayPal will tell you why the transfer failed — usually because the debit card was declined or the card issuer rejected the transaction. Try again with the same card, or switch to a different linked debit card if you have one.
Limits on how much you can transfer
PayPal sets daily and monthly transfer limits based on your account history and how long you have been a customer. New accounts typically have lower limits — sometimes as little as $100 per day. As your account ages and you build a history of successful transfers, PayPal raises these limits.
Your bank may also set its own limits on how much money can land in your account in a single day. If you hit your bank's limit, the transfer will still go through, but your bank might hold the money for review before posting it.
To see your current limits, go to your PayPal settings and look for "Transfer limits" or "Account limits." If you need a higher limit, PayPal sometimes lets you request an increase, though approval is not may provide.
Transfers to accounts not in your name
PayPal will not let you transfer money to a bank account or debit card that is not registered in your name. The account holder's name must match the name on your PayPal account exactly. If your name on PayPal is "James Robert Smith" but your bank account is under "J.R. Smith," PayPal may reject the transfer.
If you need to send money to someone else, use PayPal's peer-to-peer transfer feature instead. You can send money to another PayPal user's email address or phone number, and they can then transfer it to their own bank account. PayPal charges a fee for peer transfers if you use a credit card to fund them, but transfers from your PayPal balance are free.
Frequently Asked Questions
How long does it really take for money to show up in my bank account?
Standard transfers take one to three business days from the moment you start them. Weekends and holidays do not count as business days. If you start a transfer on Friday, your bank will not process it until Monday at the earliest, so it might not show up until Wednesday or Thursday.
Can I cancel a transfer after I start it?
No. Once you confirm a transfer, it cannot be stopped. The money leaves your PayPal account immediately and is on its way to your bank. If the transfer fails, PayPal will refund it to your PayPal balance, but you cannot cancel it yourself.
What if I transfer money but my bank account gets closed?
If your bank account is closed before the transfer arrives, the money will bounce back to PayPal as a failed transfer. PayPal will refund it to your PayPal balance within five to ten business days. Make sure your bank account stays open until the transfer completes.
Do I have to pay taxes on money I transfer from PayPal to my bank?
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 may be taxable depending on the amount and your location. PayPal reports large transactions to the IRS, so keep records of where the money came from.
Why is PayPal asking me to verify my bank account before I can transfer?
PayPal verifies new bank accounts by sending two small deposits and asking you to confirm the amounts. This proves the account is real and in your name. It usually takes one to two business days for the deposits to show up. Once you verify, you can transfer money out immediately.