How to send money from PayPal to your bank account
You can transfer money from your PayPal balance to a linked bank account in two ways: a standard transfer that takes three to five business days and costs nothing, or an instant transfer that arrives within 30 minutes but charges a flat fee (usually $0.25 to $2.00, depending on your bank). Both require that you have already linked a U.S. bank account to your PayPal profile and verified it by confirming two small deposits PayPal sends to that account.
The money you transfer must come from your PayPal balance—the funds sitting in your PayPal wallet after a sale, refund, or deposit. You cannot transfer money directly from a linked credit card or debit card; you can only move what PayPal holds for you.
Key Takeaways
- Standard transfers to your bank account are free and take three to five business days; instant transfers cost $0.25 to $2.00 and arrive within 30 minutes.
- You must link and verify a bank account before any transfer can happen, which involves confirming two small deposits PayPal sends to that account.
- You can only transfer money from your PayPal balance, not from a linked credit or debit card.
- Transfers initiated on weekends or holidays begin processing the next business day.
- If a transfer fails, PayPal returns the money to your balance within one business day.
Linking and verifying your bank account
Before you can transfer anything, you need to add a bank account to your PayPal profile. Log into PayPal, go to Wallet, select Link a Bank Account, and enter your routing number and account number. You can find both on a check or by logging into your bank's website.
After you enter the account details, PayPal sends two small deposits (usually between $0.01 and $0.99 each) to that account over one to two business days. Once they arrive, you return to PayPal, go to Wallet, select the bank account, and confirm the exact amounts of those two deposits. This verification step proves you own the account and prevents someone else from linking your bank account without permission.
If you already have a bank account linked but have not verified it, PayPal will not let you transfer money until you complete the verification step. Check your bank account for those two small deposits and confirm them in PayPal.
Initiating a standard transfer
Open PayPal and go to Wallet. Select Transfer Money, then Transfer to Your Bank. Choose the bank account you want the money to go to (if you have linked more than one), enter the amount, and confirm. The transfer begins processing immediately, though the money will not appear in your bank account for three to five business days.
The three to five day window is the standard timeline for all U.S. banks to process incoming transfers. Weekends and federal holidays do not count as business days, so a transfer you start on Friday afternoon will not begin processing until Monday morning. If you initiate a transfer on a holiday, it starts the next business day.
Once you confirm the transfer, you can see it in your PayPal transaction history marked as "Transfer to Bank Account" with a pending status. You cannot cancel a transfer after you have confirmed it, so double-check the amount and the destination account before you submit.
Using instant transfer for faster money movement
If you need the money sooner, PayPal offers instant transfer to a debit card linked to your bank account. The money arrives within 30 minutes on any day, including weekends and holidays. The fee ranges from $0.25 to $2.00 depending on your bank and the amount you transfer; PayPal shows you the exact fee before you confirm.
To use instant transfer, go to Wallet, select Transfer Money, then Transfer to Your Bank. Choose Instant Transfer (if available for your account), select the debit card, enter the amount, and confirm. The fee is deducted from your PayPal balance, so if you transfer $100 with a $1.50 fee, your balance drops by $101.50.
Not all PayPal accounts have instant transfer available. New accounts, accounts with recent disputes or chargebacks, or accounts that have not completed identity verification may not see this option. If you do not see Instant Transfer as a choice, you can only use the standard three to five day method.
What happens if a transfer fails
A transfer can fail if the bank account information is incorrect, the account has been closed, or your bank rejects the incoming transfer for security reasons. When this happens, PayPal returns the money to your PayPal balance within one business day. You will receive a notification explaining why the transfer failed.
The most common reason for failure is a mismatch between the account number or routing number you entered and what your bank has on file. If you see an error message, log into your bank's website, confirm the correct routing and account numbers, and try the transfer again with the correct information.
If your bank rejected the transfer, contact your bank directly to ask why. Some banks flag transfers from payment platforms as suspicious and block them automatically. Your bank may ask you to confirm the transfer or add PayPal to a whitelist of trusted senders before you try again.
Timing and processing for different days
Standard transfers initiated Monday through Friday before your bank's cutoff time (usually 5 p.m. Eastern) begin processing the same day and arrive within three to five business days. Transfers initiated after the cutoff or on weekends start processing the next business day.
If you initiate a transfer on a Friday evening, it does not start until Monday morning, so the three to five day window begins then. A transfer started Monday morning might arrive by Thursday or Friday of that same week, but it could also take until the following Monday depending on your specific bank's processing speed.
Instant transfers bypass this delay and arrive within 30 minutes regardless of the day or time, but they cost a fee. Standard transfers are free, so if you can wait three to five days, you save money by choosing the standard option.
Checking transfer status and history
You can track any transfer in your PayPal transaction history. Log into PayPal, go to Activity, and look for the transfer listed with a status of Pending, Completed, or Failed. A pending transfer shows an estimated arrival date based on when you initiated it and your bank's processing time.
Once a transfer is marked Completed in PayPal, it has left PayPal's system and is on its way to your bank. It may take another day or two to show up in your bank account, depending on your bank's processing speed. If you do not see the money after the estimated arrival date has passed, contact your bank to confirm they received it.
Keep your transaction history for your records. PayPal stores this information for at least 18 months, but your bank may ask you to provide proof of the transfer if there is ever a dispute about whether the money arrived.
Frequently Asked Questions
Can I transfer money from PayPal to someone else's bank account?
No. You can only transfer money from your PayPal balance to a bank account that is linked to your own PayPal profile. To send money to someone else, use PayPal's send money feature or a peer-to-peer payment method like Venmo or Cash App.
What if I linked the wrong bank account?
You can unlink an incorrect bank account from your PayPal Wallet and add the correct one. If you already initiated a transfer to the wrong account, contact PayPal support immediately to try to stop it before it processes. Once the money reaches the wrong bank account, you will need to contact that bank to recover it.
Do I 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, the money you earned through PayPal sales or services may be subject to income tax. Keep records of all transactions for tax purposes and consult a tax professional about your specific situation.
Why does PayPal say I cannot transfer money even though I have a balance?
Your account may not have a verified bank account linked, you may be a new user whose account is still under review, or there may be a hold on your account due to unusual activity or a dispute. Check your PayPal settings to confirm your bank account is verified, or contact PayPal support to ask why transfers are restricted.
Can I transfer money from PayPal to a savings account instead of a checking account?
Yes. PayPal can transfer to either a checking or savings account as long as the account is linked to your profile and verified. The processing time and fees are the same regardless of account type.