The basic process: three steps and two to three business days

To transfer money from PayPal to your bank account, you link a bank account to your PayPal wallet, then initiate a transfer from the PayPal app or website. PayPal moves the money to your linked bank account, and it arrives in two to three business days. The transfer itself is free if you choose the standard transfer speed.

You need a PayPal account with a balance, a U.S. bank account in your own name, and your bank's routing number and account number. If you have never linked a bank account to PayPal before, the first transfer may take longer while PayPal verifies the account.

Key Takeaways

  • Standard transfers from PayPal to your bank account are free and take two to three business days.
  • You must link your bank account to PayPal first, which requires your routing number and account number.
  • PayPal offers an instant transfer option for a fee of 1.5% of the amount, with money arriving within 30 minutes on most days.
  • The first transfer to a newly linked account may take longer while PayPal confirms the account is real and belongs to you.
  • If a transfer fails, PayPal returns the money to your PayPal balance within one to two business days.

How to link your bank account to PayPal

Open the PayPal app or go to PayPal.com and sign in. Tap or click the menu icon (three horizontal lines), then select Wallet or Settings depending on whether you use the app or website. Look for Link a bank account or Add bank account.

Enter your bank's name or routing number. PayPal will search for your bank and show you a list. Select your bank from the results. Then enter your account type (checking or savings), your account number, and confirm it. PayPal will ask you to verify your full name and address match your bank records.

After you submit, PayPal deposits two small amounts (usually under $1 each) into your bank account within one to two business days. You will then need to log back into PayPal, go to your bank account settings, and enter those two amounts to confirm you own the account. Only after this verification is complete can you transfer money out.

Starting a standard transfer (free, two to three days)

Once your bank account is verified, open PayPal and go to Wallet (app) or Transfer Money (website). Select Transfer to your bank. Enter the amount you want to move and confirm your linked bank account is selected as the destination.

PayPal will show you the transfer fee (none for standard transfers) and the expected arrival date. Review the details and tap or click Transfer Now. You will see a confirmation number. Save or screenshot this for your records.

The money leaves your PayPal balance immediately, but your bank will not receive it for two to three business days. Weekends and bank holidays extend this timeline. If you transfer on a Friday evening, for example, the money may not arrive until Wednesday or Thursday.

Instant transfers: when you need the money faster

PayPal offers Instant Transfer, which moves money to your bank account within 30 minutes on most business days. The cost is 1.5% of the amount transferred, with a minimum fee of $0.25. For a $100 transfer, you pay $1.50. For a $1,000 transfer, you pay $15.

To use instant transfer, follow the same steps as a standard transfer, but when PayPal shows you the fee and timeline, select Instant Transfer instead of the standard option. PayPal will deduct the fee from your PayPal balance and send the remaining amount to your bank.

Instant transfers work on business days between roughly 8 a.m. and 11 p.m. Eastern Time. If you request a transfer outside these hours or on a weekend, it will process the next business day. Some banks take longer than 30 minutes to post the money to your account, even though PayPal sends it instantly.

What happens if the transfer fails

A transfer can fail if your bank account information is incorrect, your account is closed, or your bank rejects the transfer for fraud prevention. PayPal will send you an email explaining why the transfer failed. The money returns to your PayPal balance within one to two business days.

If you see a failed transfer, check that your bank account number and routing number are correct in PayPal. Log into your bank's website to confirm the account is still open and active. If the account is correct and open, contact your bank to ask whether they blocked the transfer. Some banks flag transfers from payment apps as suspicious and need you to approve them first.

Once you have resolved the issue with your bank, try the transfer again. If it fails a second time, contact PayPal support with your failed transfer confirmation number and the reason your bank gave you.

Timing for the first transfer to a new bank account

The first time you transfer to a newly linked bank account, PayPal may hold the transfer for up to 24 hours while it confirms the account is legitimate. This is a fraud prevention step. You will see a message in the app or on the website saying the transfer is pending review.

During this review period, the money is not in your PayPal balance and not yet in your bank account—it is in a temporary hold. Once PayPal completes the review, the transfer proceeds on the normal two to three day timeline. Future transfers to the same account will not have this delay.

Transferring from PayPal to a joint bank account

You can link a joint bank account to PayPal, but the account must be registered in your name. If your name appears on the account as a primary or secondary owner, you can use it. PayPal will verify your name against the bank's records during the linking process.

If your name does not appear on the account at all—for example, if it is solely in your spouse's name—PayPal will reject it. In that case, you would need to transfer the money to your own individual account first, or ask the account owner to link it to their own PayPal account instead.

Frequently Asked Questions

Can I transfer money from PayPal to someone else's bank account?

No. PayPal only allows you to transfer money to a bank account registered in your own name. To send money to someone else, use PayPal's peer-to-peer transfer feature (Friends and Family or standard payment) instead, which moves money directly from your PayPal balance to theirs.

What if my bank account is not showing up when I try to link it?

PayPal searches for banks by name or routing number. If your bank does not appear in the search results, try entering the routing number instead of the bank name. If it still does not show, your bank may not be supported by PayPal. Contact your bank to confirm they accept ACH transfers, then contact PayPal support with your bank's name and routing number.

Do I have to 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 payments over $20,000 and 200 transactions to the IRS on Form 1099-K. Consult a tax professional about your specific situation.

Why is my transfer taking longer than two to three days?

Weekends and bank holidays add time—a transfer initiated Friday evening may not arrive until Wednesday. Some banks also process ACH transfers more slowly than others. If it has been more than five business days, contact PayPal support with your transfer confirmation number and the date you initiated it.

Can I cancel a transfer after I have started it?

If the transfer is still pending (has not yet left PayPal), you can cancel it from the app or website by going to your transaction history, finding the transfer, and selecting cancel. Once the transfer has been sent to your bank, you cannot cancel it through PayPal. Contact your bank to ask whether they can reverse it, though most will not.