The fastest way to transfer money from PayPal to your bank account
You can move money from PayPal to a linked bank account in two to three business days using a standard transfer, or in one business day using PayPal's instant transfer option. The standard transfer is free; instant transfers cost between 1% and 2% of the amount you send, with a minimum fee of 25 cents.
Before you can transfer anything, you need to link a bank account to your PayPal account. PayPal will verify the account by depositing two small amounts (usually under $1 each) into your bank account, then asking you to confirm those amounts in the PayPal app or website. This verification takes one to two business days.
Once your account is verified, you initiate a transfer from the PayPal app or website, choose your bank account, pick your transfer speed, and confirm. The money lands in your bank account on the timeline you selected.
Key Takeaways
- Standard transfers from PayPal to a linked bank account take two to three business days and cost nothing.
- Instant transfers arrive within one business day but cost 1% to 2% of the amount transferred, with a 25-cent minimum fee.
- You must link and verify a bank account before any transfer can happen, which requires confirming two small deposits PayPal sends to your account.
- You can only transfer money that is actually in your PayPal balance—money held for disputes, pending sales, or restricted by PayPal cannot be moved.
How to link a bank account to PayPal
Go to your PayPal account settings and select "Wallet" or "Banks and Cards" depending on whether you are using the app or website. Choose "Link a Bank Account" and enter your routing number and account number. You can find both on a check, or log into your bank's website and look for account details.
PayPal will deposit two small amounts into your account within one to two business days. Log back into PayPal, go to the same section, and enter the two amounts you see on your bank statement. Once you confirm them, your account is verified and ready to use.
If you do not see the deposits after two business days, contact your bank to confirm the account number and routing number are correct. If they are, contact PayPal support—sometimes deposits fail if the account type is not compatible with PayPal transfers.
Transferring money using the standard free option
Open PayPal on your phone or computer and go to your wallet or balance. Select "Transfer Money" or "Move Money," then choose "Transfer to Your Bank." Select the bank account you want to use and enter the amount you want to send.
PayPal will show you the arrival date—usually two to three business days from the date you initiate the transfer. Weekends and bank holidays add time, so a transfer you start on a Friday afternoon might not land until Wednesday. Confirm the transfer and you are done; the money will move automatically.
The money leaves your PayPal balance immediately, even though it has not reached your bank yet. If you need to cancel, you have a short window—usually a few minutes—before PayPal processes the transfer. After that, you cannot stop it.
Using instant transfer when you need money faster
If you need the money in your bank account within one business day, select "Instant Transfer" instead of the standard option. PayPal will show you the fee—1% to 2% depending on your account history and transfer size, with a minimum of 25 cents and a maximum of $25 per transfer.
The fee is deducted from your PayPal balance before the transfer is sent, so if you want $100 in your bank account and the fee is $1.50, PayPal will transfer $98.50 and charge you $1.50. The money typically arrives within a few hours, though PayPal promises one business day.
Instant transfers work on weekends and holidays, which is why they cost more than standard transfers. If you use instant transfer regularly, the fees add up quickly—a $500 transfer at 1% costs $5, and at 2% costs $10.
What to do if a transfer fails or gets stuck
If your transfer does not arrive by the promised date, log into PayPal and check the transaction history. Look for the transfer you sent and see what status it shows. If it says "completed," the money has left PayPal and your bank is holding it—contact your bank to ask why it has not posted to your account.
If PayPal shows the transfer as "pending" or "failed," the money is still in your PayPal account. A pending transfer usually completes within 24 hours. A failed transfer means PayPal could not send the money—common reasons include a closed bank account, a mismatch between the name on your PayPal account and the name on your bank account, or a bank that does not accept PayPal transfers.
Contact PayPal support with the transaction ID (a number PayPal assigns to every transfer) and ask why the transfer failed. If your bank account information changed or your bank closed the account, you will need to update your bank details in PayPal before trying again. If your name does not match, you may need to update your PayPal profile or link a different bank account.
Limits on how much you can transfer
PayPal sets daily and monthly transfer limits that vary by account age, verification status, and history. A brand-new account might be limited to $500 per day, while an established account with a long history might transfer $25,000 or more per day. Monthly limits are typically higher—sometimes $100,000 or more.
You can only transfer money that is in your available PayPal balance. Money that is held for disputes, pending from recent sales, or restricted by PayPal cannot be transferred. If you try to transfer more than your available balance, PayPal will reject the transfer and show you how much you can actually send.
If you hit your daily limit, you can try again the next day. If you need to transfer more than your monthly limit allows, contact PayPal support and ask if they can raise your limit. They may ask for additional verification, such as a photo ID or proof of address.
Transferring money to someone else's bank account
PayPal does not let you transfer money directly to another person's bank account. You can only transfer to a bank account that is linked to your own PayPal profile. If you want to send money to someone else, use PayPal's "Send Money" feature to send it to their email address or phone number, and they can accept it into their PayPal account or transfer it to their own bank.
Alternatively, use your bank's bill pay or wire transfer service to send money directly to another person's bank account. This bypasses PayPal entirely and may be faster or cheaper depending on the amount and your bank's fees.
Frequently Asked Questions
Can I transfer money from PayPal to a bank account that is not in my name?
No. PayPal only allows transfers to bank accounts where the account holder's name matches the name on your PayPal profile. If the names do not match, PayPal will reject the transfer. You can only transfer to accounts in your own name.
What happens if I transfer money and then dispute the transaction?
Once money leaves PayPal and reaches your bank account, PayPal cannot reverse it. If you need to dispute a transfer, contact your bank and ask them to reverse it on their end. Your bank may charge a fee or require documentation. Disputes with your bank take longer than disputes within PayPal.
Do I pay taxes on money I transfer from PayPal to my bank account?
Transferring money to your bank account is not a taxable event—you are moving money you already earned or received. However, the original income or payment that landed in PayPal may be taxable depending on where it came from. If you received payment for goods or services, that income is taxable regardless of whether it stays in PayPal or moves to your bank.
Can I set up automatic transfers from PayPal to my bank account?
PayPal does not offer automatic recurring transfers. You must initiate each transfer manually through the app or website. If you want to move money regularly, you can set a reminder to transfer on the same day each week or month.
Why does PayPal say my bank account is not may be able to access for transfers?
Some bank accounts cannot receive PayPal transfers due to account type, bank policies, or country restrictions. Business accounts, money market accounts, and accounts at certain banks or credit unions may not be compatible. Try linking a different bank account, or contact your bank to ask if they accept PayPal transfers.