PayPal transfers to your bank account take one to three business days and cost nothing if you use a standard transfer
When you move money from PayPal to your bank account, you have two main routes: a standard transfer that arrives in one to three business days at no cost, or an instant transfer that lands the same day but charges a small fee (usually 1% of the amount, with a minimum of 25 cents). Most people use the standard transfer because the wait is short and there is no charge. You need a bank account linked to your PayPal account before you can send money anywhere.
The money goes directly into the checking or savings account you have connected to PayPal. PayPal does not hold the funds or require you to do anything after you initiate the transfer—the bank handles the deposit on its end. If something goes wrong, the money either returns to your PayPal balance or you contact PayPal support to trace it.
Key Takeaways
- Standard transfers from PayPal to your bank account are free and take one to three business days; instant transfers cost 1% of the amount and arrive the same day.
- You must link a valid U.S. bank account to your PayPal account before you can transfer money out.
- The transfer happens through the PayPal app or website by selecting your linked bank account and confirming the amount.
- If a transfer fails or does not arrive within three business days, contact PayPal support with your transaction ID to investigate.
- PayPal holds your money in reserve for 21 days after a sale if you are a new seller, which delays transfers even if you request them immediately.
Link your bank account to PayPal first
Before you can transfer money out, you need to add a bank account to your PayPal account. Go to your PayPal settings, select "Wallet" or "Banks and Cards," and choose "Link a Bank Account." PayPal will ask for your routing number and account number—both appear on the bottom left of a check, or you can find them in your bank's app or by calling the bank directly.
PayPal verifies the account by depositing two small amounts (usually under a dollar each) into your bank account within one to two business days. Once those deposits arrive, you go back to PayPal, confirm the amounts, and the account is verified. Only then can you transfer money to it. If you have already linked the account and it is verified, skip this step and move to the transfer itself.
How to send a standard transfer (free, one to three days)
Open PayPal on the app or website and go to your account balance or wallet. Look for a button labeled "Transfer Money" or "Withdraw." Select the bank account you want to send money to—if you have only one linked, it will be pre-selected. Enter the amount you want to transfer and confirm.
PayPal will show you the expected arrival date (usually one to three business days from the date you request it) and confirm there is no fee. Hit "Transfer Now" or the equivalent button, and the transaction is complete. You will receive an email confirmation with a transaction ID. The money leaves your PayPal balance immediately, but your bank account will not show the deposit until the arrival date.
How to send an instant transfer (costs 1%, arrives same day)
If you need the money today, PayPal offers instant transfers to most U.S. bank accounts. The process is the same as a standard transfer—go to "Transfer Money," select your bank account, and enter the amount—but you will see an option to "Transfer Instantly" instead of the standard option. PayPal will show you the fee (1% of the amount you are sending, with a minimum of 25 cents) before you confirm.
The money arrives within 30 minutes in most cases, though PayPal says it can take up to one hour. You pay the fee whether the transfer succeeds or fails, so only use instant transfer if you truly need the money the same day. The fee comes out of your PayPal balance, so if you are sending $100 instantly, your PayPal balance drops by $101.
What happens if your transfer does not arrive
Standard transfers usually land within the stated one to three business days. If three business days have passed and the money is not in your bank account, contact PayPal support. Have your transaction ID ready—it appears in your PayPal transaction history and in the confirmation email. PayPal will investigate whether the transfer was sent, whether your bank received it, or whether it failed somewhere in between.
If the transfer failed, PayPal returns the money to your PayPal balance within one to two business days. If your bank received it but it does not show in your account, your bank may be holding it for review—contact your bank directly with the transaction ID and ask them to release it. Do not request the transfer again until you know what happened to the first one, or you may end up sending the money twice.
Holds on your money if you are a new seller
If you received money through PayPal as a seller (from selling items or services), PayPal may hold that money for 21 days before you can transfer it out. This is a fraud prevention measure for new sellers. The hold applies even if you request a transfer immediately after the sale—PayPal will not release the money until the 21 days are up or the buyer confirms they received the item, whichever comes first.
You can see which funds are held and when they will be released by going to your PayPal balance and looking for a "Pending" or "On Hold" section. This does not affect money you received as a personal transfer from another person, only money from sales. Once the hold lifts, you can transfer the money to your bank account using the standard or instant method.
Fees and limits on transfers
Standard transfers are free. Instant transfers cost 1% of the amount (minimum 25 cents). PayPal does not charge a fee to link your bank account or to receive transfers into it—the cost is only on your end if you choose instant.
PayPal does not publish a single transfer limit that applies to everyone. Your limit depends on your account history, how long you have had the account, and whether you are a buyer, seller, or both. If you try to transfer more than your limit allows, PayPal will tell you the maximum amount you can send. If you need to transfer a large amount, contact PayPal support to ask whether your limit can be raised.
Frequently Asked Questions
Can I transfer money from PayPal to someone else's bank account?
No. PayPal transfers only go to a bank account that is linked to your own PayPal account. To send money to someone else's bank account, you would need to send it to their PayPal account first (if they have one), or use a different service like Venmo, wire transfer, or ACH. PayPal does not move money directly from your account to another person's bank account.
What if I linked the wrong bank account?
If you have not yet transferred money to it, unlink the account in your PayPal settings and add the correct one. If you already sent money to the wrong account, contact PayPal support immediately with your transaction ID. PayPal may be able to recall the transfer if it has not been processed by your bank yet, but once your bank receives it, you will need to contact your bank to reverse it or contact the owner of the account.
Why is my transfer taking longer than three days?
Weekends and bank holidays extend the timeline—PayPal counts business days only. If you requested a transfer on Friday, it may not arrive until Wednesday. If more than three business days have passed since you requested it on a weekday, contact PayPal support with your transaction ID. Your bank may also be holding the deposit for review, especially if it is a large amount or an unusual transfer for your account.
Do I pay taxes on money I transfer from PayPal to my bank account?
Transferring your own money from PayPal to your bank account is not a taxable event. However, the money itself may be taxable depending on how you earned it. If you sold items or provided services through PayPal, that income is taxable. PayPal reports sales over a certain threshold to the IRS, so keep records of your transactions for tax purposes.
Can I transfer money from PayPal to a savings account instead of checking?
Yes. When you link your bank account to PayPal, you can choose either a checking or savings account. The process is the same, and the transfer timeline does not change. Some banks process transfers to savings accounts slightly differently, so if you have questions about how your bank handles it, contact your bank directly.