What happens when you link PayPal to your bank account
Linking your bank account to PayPal lets you move money in both directions: you can fund PayPal transfers and purchases from your checking or savings account, and you can send money from PayPal back to your bank. PayPal verifies your account by depositing two small amounts (usually under $1 each) into your bank account within one to two business days, then asks you to confirm those amounts to prove you own the account.
Once linked and verified, your bank account becomes a funding source you can choose at checkout or when sending money. PayPal does not hold your bank login—it uses a secure connection called OAuth to access only what it needs to confirm the account is real and belongs to you.
The link persists until you remove it yourself. You can have multiple bank accounts linked to one PayPal account, and you can change which one is your default funding source anytime.
Key Takeaways
- PayPal verifies your bank account by depositing two small amounts and asking you to enter those exact amounts in your PayPal settings.
- The verification process takes one to two business days for the deposits to arrive, then you confirm them immediately.
- Once verified, you can use your bank account to fund PayPal purchases, send money to other people, and withdraw PayPal balance back to your bank.
- You can link multiple bank accounts to one PayPal account and switch between them at any time.
- PayPal never sees your bank login—it uses a secure authorization method that only confirms account ownership.
Step-by-step: adding your bank account to PayPal
Log into your PayPal account on the web or in the app. Go to Settings (the gear icon), then select Wallet or Banks and Cards depending on your version. Click Link a Bank Account.
Enter your bank's name or routing number. PayPal will search for your bank and show you a list. Select the correct one—if your bank does not appear, you can enter the routing number manually. You can find your routing number on the bottom left of any check, or by calling your bank's customer service line.
Enter your account type (checking or savings), your full account number, and confirm it. PayPal will then tell you it has initiated two test deposits. Do not close the window or navigate away yet—write down the reference number PayPal shows you, or take a screenshot.
Check your bank account one to two business days later. Log into your online banking and look for two deposits from PayPal, usually labeled "PAYPAL" or "PAYPAL INST XFER". The amounts will be random cents—for example, $0.23 and $0.17. Write down both amounts exactly.
Return to PayPal, go back to Settings > Wallet, and find the bank account you just added. It will show a status like "Pending Verification". Click on it and select Confirm Amounts or Verify Now. Enter the two amounts you found in your bank account in the order PayPal asks for them. Click Confirm.
PayPal will verify the amounts immediately. Your bank account is now linked and ready to use. The two test deposits will be reversed (removed) within a few business days.
What to do if the verification deposits do not arrive
If you do not see the two deposits after three business days, log back into PayPal and check the status of your bank account link. PayPal sometimes shows an error message that tells you what went wrong—for example, "Account number does not match" or "Routing number not recognized".
If PayPal shows an error, delete the account and try again. Make sure you entered your account number and routing number exactly as they appear on your check or in your online banking. Do not add spaces or dashes unless your bank's website shows them.
If PayPal shows no error but the deposits still have not arrived after five business days, contact your bank's customer service. Tell them you are expecting two small deposits from PayPal and ask them to check if the transfers were rejected or returned. Your bank can tell you whether the routing number or account number was incorrect, or whether there was a technical issue on their end.
Once your bank confirms the issue, return to PayPal and try linking the account again with the correct information. If your bank says the deposits were sent but you still cannot find them, contact PayPal's support team with your bank's confirmation and the reference number PayPal gave you when you first linked the account.
Removing or changing a linked bank account
Go to Settings > Wallet and find the bank account you want to remove. Click on it and select Remove or Delete. PayPal will ask you to confirm. Once removed, you cannot use that account to fund PayPal transactions, but any pending transfers to that account will still go through.
If you want to change which bank account is your default funding source, go to Wallet, find the account you prefer, and select Make Primary or Set as Default. PayPal will use this account the next time you make a purchase or send money unless you manually choose a different one at checkout.
You can link a new bank account anytime by repeating the verification process. There is no limit to how many bank accounts you can have linked, though only one can be your default.
How PayPal protects your bank information
PayPal does not store your bank login credentials. Instead, it uses OAuth, a secure authorization standard that lets you confirm your identity directly with your bank without sharing your password with PayPal. When you link your account, you are redirected to your bank's website (or PayPal's secure connection to your bank), you log in there, and you authorize PayPal to access only your account verification information.
The two test deposits are PayPal's way of confirming that the account number and routing number you entered are real and belong to you. Because only the account owner can see their bank transactions, confirming the deposit amounts proves ownership without PayPal needing any other proof.
If your PayPal account is compromised, a thief cannot withdraw money from your bank account without your bank's authorization. Transfers from PayPal to your bank go through the same ACH system that any other bank transfer uses, which means your bank has the same fraud protections and dispute rights as it does for any other transfer.
Timing: when transfers between PayPal and your bank happen
Transfers from your bank to PayPal (funding a purchase or transfer) are usually instant if you use PayPal's instant funding option, though this may carry a small fee. Standard transfers take one to two business days.
Transfers from PayPal back to your bank account take one to three business days, depending on your bank. Some banks post ACH transfers the same day they receive them; others wait until the next business day. Weekends and bank holidays add extra time—a transfer initiated on Friday evening may not appear until Tuesday.
If you are expecting a transfer and it has not arrived after the stated timeframe, log into your bank account and check your pending transactions. If you see nothing pending, contact PayPal with the transaction ID (PayPal shows this in your transaction history) and ask them to confirm the transfer was sent. If PayPal confirms it was sent but your bank has no record, ask your bank to check their incoming ACH log for PayPal's bank details.
Frequently Asked Questions
Can I link a savings account instead of checking?
Yes. When you enter your account type during linking, select Savings if that is what you want to use. The verification process is identical. Some banks process ACH transfers to savings accounts more slowly than to checking accounts, so transfers may take an extra day.
What if I enter the wrong bank account number by mistake?
PayPal will send the two test deposits to the account number you entered. If that account belongs to someone else, they will see the deposits in their bank account, but they cannot complete the verification because they do not have access to your PayPal account. Delete the incorrect account from PayPal and link the correct one. The test deposits to the wrong account will be reversed automatically.
Do I have to link a bank account to use PayPal?
No. You can use PayPal with a credit or debit card instead. However, linking a bank account gives you more options for funding transfers and usually costs less because bank transfers do not carry the same fees that card transactions do.
Can I link the same bank account to multiple PayPal accounts?
Yes, but PayPal will ask you to verify it each time. Each PayPal account must complete its own verification with the two test deposits, even if you are linking the same physical bank account.
What happens to my linked bank account if I close my PayPal account?
The link is deleted when you close PayPal. Your bank account itself remains open and unaffected. If you reopen a PayPal account later, you will need to link and verify your bank account again from the beginning.