The fastest way to get your PayPal balance into your bank account
You can transfer money from PayPal to your bank account in one of three ways: instant transfer (arrives in minutes, costs a small fee), standard transfer (arrives in one to three business days, free), or PayPal debit card withdrawal (instant at an ATM, but limited to daily ATM withdrawal limits). Most people use standard transfer because it is free and the wait is short. Instant transfer costs between $0.25 and $2.00 depending on the amount, so it makes sense only when you need the money right away.
Before you can transfer anything, you must link a bank account to your PayPal account. PayPal will ask for your routing number and account number — the same information you would give an employer for direct deposit. The linking process takes a few minutes, but PayPal may hold your transfer for a day or two the first time you use a new bank account, as a fraud check.
Key Takeaways
- Standard transfer is free and takes one to three business days; instant transfer costs $0.25 to $2.00 and arrives within minutes.
- You must link your bank account to PayPal before you can transfer money, using your routing number and account number.
- PayPal may delay your first transfer from a newly linked account by one or two days as a security measure.
- The maximum you can transfer in a single transaction varies by account age and history, but most established accounts can move several thousand dollars at once.
- If your transfer does not arrive on time, contact your bank first — delays often happen on the receiving end, not PayPal's.
How to link your bank account to PayPal
Open PayPal on your phone or computer and go to your account settings. Look for a section called "Wallet" or "Banks and Cards" — the exact name depends on whether you are using the app or the website. Select "Link a Bank Account" and choose your bank from the list, or enter your bank's name if it does not appear.
PayPal will ask for your routing number and account number. Your routing number is a nine-digit code that identifies your bank; your account number identifies your specific account. Both appear on the bottom left of a check, or you can find them by logging into your bank's website or calling the customer service number on the back of your debit card. Do not use a savings account if you have a checking account — transfers work faster from checking.
After you enter this information, PayPal will send two small deposits (usually between $0.01 and $0.99 each) to your bank account over the next few days. Your bank will show these deposits in your account history. PayPal will then ask you to confirm the amounts of these two deposits. This is PayPal's way of verifying that you own the account. Once you confirm, the account is linked and ready to use.
Standard transfer: free but slower
Standard transfer is the default option and costs nothing. To start one, open PayPal, go to your wallet, and select "Transfer Money." Choose "Transfer to Your Bank" and enter the amount you want to move. PayPal will show you which bank account the money will go to — if you have linked more than one, make sure you pick the right one.
The money will arrive in one to three business days. Business days means Monday through Friday, excluding federal holidays. If you initiate a transfer on a Friday afternoon, it may not arrive until Tuesday or Wednesday. If you initiate one on a weekend or holiday, it will not start processing until the next business day.
Once you confirm the transfer, you cannot cancel it. If you change your mind, you will have to wait for the money to arrive in your bank account and then transfer it back to PayPal manually — a process that takes another one to three days. For this reason, double-check the amount and the destination account before you hit confirm.
Instant transfer: fast but costs money
Instant transfer moves money to your bank account within minutes instead of days. The fee ranges from $0.25 to $2.00 depending on the amount you are transferring — PayPal shows you the exact fee before you confirm. The fee is deducted from your PayPal balance, so if you transfer $100 with a $1.50 fee, your bank receives $100 and your PayPal balance drops by $101.50.
To use instant transfer, go to your wallet, select "Transfer to Your Bank," and choose the instant option. Not all bank accounts are may be able to access for instant transfer — PayPal limits it to certain banks and account types. If your bank does not support it, the option will not appear, and you will have to use standard transfer instead.
Instant transfer is most useful when you need cash urgently — for example, to cover an unexpected bill or to move money before a deadline. For routine transfers, standard transfer saves you money and the wait is rarely a problem.
Using your PayPal debit card to withdraw cash
If PayPal has issued you a debit card, you can withdraw money directly from an ATM without transferring to your bank first. The money comes out of your PayPal balance instantly. However, ATM withdrawals are subject to daily limits — most banks allow $500 to $1,000 per day, though this varies by your bank and your account history.
This method is useful if you need cash in hand rather than money in your bank account. It also bypasses the need to wait for a transfer. The downside is that ATM fees may apply if you use an out-of-network ATM, and you are limited by how much you can withdraw in a single day.
What to do if your transfer is delayed or does not arrive
Standard transfers usually arrive within the stated one to three business days. If yours has not shown up after three business days, check your PayPal transaction history first. Look for the transfer and confirm that its status says "Completed" or "Sent." If it says "Pending," wait a bit longer — it has not finished processing yet.
If the status says "Completed" but the money is not in your bank account, contact your bank's customer service. Delays on the receiving end are common and usually resolve within a day or two. Your bank can tell you whether the transfer has arrived in their system but not yet posted to your account, or whether it has not arrived at all. If it has not arrived, ask your bank for the reference number and then contact PayPal with that information.
Instant transfers occasionally fail if there is a problem with your bank account or if PayPal detects unusual activity. If an instant transfer fails, PayPal will return the money to your PayPal balance immediately and show you an error message explaining why. Common reasons include an incorrect account number, a closed account, or a mismatch between the name on your PayPal account and the name on your bank account.
Transfer limits and how they work
PayPal sets limits on how much you can transfer in a single transaction and how much you can transfer in a given time period. These limits depend on your account age, your transaction history, and whether PayPal has verified your identity. A brand-new account might be limited to $500 per transfer, while an established account with a clean history might be able to transfer $5,000 or more.
You can check your transfer limit by going to your wallet and starting a transfer — PayPal will show you the maximum amount you can move. If you need to transfer more than your limit allows, you can split it into multiple transfers, though you will have to wait for each one to complete before starting the next.
If you regularly hit your transfer limit, PayPal may raise it automatically over time as your account history builds. You can also contact PayPal support to request a higher limit, though they do not always grant these requests.
Frequently Asked Questions
Can I transfer money to someone else's bank account from my PayPal?
No. PayPal transfers only go to a bank account linked to your own PayPal account. To send money to another person, use PayPal's "Send Money" feature, which transfers funds directly from one PayPal account to another. If you want to move money to someone else's bank account, you will have to transfer it to your own bank first, then use your bank's bill pay or wire transfer service.
What happens if I link the wrong bank account?
If you transfer money to the wrong account, contact PayPal immediately. They may be able to recall the transfer if it has not yet been processed by the receiving bank. Once the money has been deposited into the wrong account, PayPal cannot retrieve it — you will have to contact the bank that received it and ask them to reverse the transfer, which they may or may not do depending on their policies.
Do I pay taxes on money I transfer from PayPal to my bank?
Transferring money from PayPal to your bank is not a taxable event — you are just moving money you already have. However, if the money in your PayPal account came from selling goods or services, that income may be taxable. PayPal reports transactions to the IRS if they meet certain thresholds, so keep records of where your PayPal balance came from.
How long does it take to link a new bank account?
Linking takes a few minutes to enter your information, but PayPal's verification process takes a few days. You will see the two small test deposits in your bank account within two to three business days, and once you confirm those amounts, your account is fully linked and ready to use for transfers.
Can I transfer money from PayPal if my account is limited or restricted?
No. If PayPal has limited or restricted your account due to suspicious activity or a dispute, you will not be able to transfer money out until the restriction is lifted. Contact PayPal support to find out why your account is restricted and what you need to do to restore full access.