PayPal gives you three ways to move money to your bank account: instant transfer (costs a small fee, arrives in minutes), standard transfer (free, takes one to three business days), or withdrawal to a debit card linked to your account
The method you choose depends on how fast you need the money and whether you want to pay a fee. Instant transfer is the fastest but costs between 1.5% and 2% of the amount you send. Standard transfer is free but slower. If you have a PayPal debit card, you can also withdraw cash at an ATM or use it to pay directly without moving money first.
Before you can transfer money to any bank account, you must link and confirm that account in PayPal. This takes a few minutes the first time but only needs to happen once per account.
Key Takeaways
- Standard transfer is free and takes one to three business days; instant transfer costs 1.5% to 2% but arrives within minutes.
- You must link your bank account to PayPal and confirm it before any transfer can leave your PayPal balance.
- Confirmation usually involves PayPal depositing two small amounts to your bank account, which you then verify in the PayPal app or website.
- Once your account is linked, you can transfer money from the Wallet section of PayPal on your phone or computer.
- If you have a PayPal debit card, you can withdraw cash at ATMs or spend directly without transferring first.
How to link your bank account to PayPal
Open the PayPal app or go to PayPal.com and sign in. Tap or click the menu icon (three horizontal lines on mobile, or your name in the top right on desktop). Select Wallet or Account Settings, then look for Banks and Cards or Linked Banks.
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 to locate them. PayPal will ask whether the account is a checking or savings account. Select the correct type.
After you submit, PayPal deposits two small amounts (usually between $0.01 and $0.99 each) into your bank account over one to two business days. Check your bank statement for these deposits. Return to PayPal, go back to your linked bank account, and enter the two amounts to confirm ownership. Once confirmed, you can transfer money immediately.
Transferring money using standard transfer (free, slower)
Open PayPal and go to Wallet. Tap or click Transfer Money or Send Money to Your Bank. Select the bank account you want to send to (if you have linked more than one). Enter the amount you want to transfer.
Choose Standard Transfer when prompted. PayPal will show you the arrival date, which is typically one to three business days depending on your bank. Confirm the transfer. You will see a confirmation number on screen and receive an email receipt.
The money leaves your PayPal balance immediately, but your bank account will not show the deposit until the arrival date. Weekends and bank holidays add time, so a transfer initiated on Friday may not arrive until Tuesday or Wednesday.
Transferring money using instant transfer (fast, costs a fee)
Follow the same steps as standard transfer: go to Wallet, select Transfer Money, choose your linked bank account, and enter the amount. When prompted to choose a transfer type, select Instant Transfer.
PayPal will display the fee before you confirm. The fee is 1.5% of the amount for most users, though some accounts may see 2%. For example, transferring $100 costs $1.50 in fees, so your bank account receives $98.50. Confirm the transfer. The money arrives in your bank account within minutes, usually within five minutes but sometimes up to 30 minutes depending on your bank.
Instant transfer is useful when you need cash the same day or when you are moving money on a Friday and cannot wait until the following week. The fee is worth it only if the speed matters to you.
What to do if your bank account will not link
The most common reason a bank account will not link is a mismatch between the name on your PayPal account and the name on your bank account. They must match exactly. If your PayPal name is "John Smith" but your bank account is under "John Michael Smith", the link will fail. Update your PayPal name to match your bank account, then try again.
If the name matches and the link still fails, your bank may not accept transfers from PayPal, or there may be a temporary issue with your bank's system. Try again after a few hours. If it continues to fail, contact your bank to confirm they accept ACH transfers (the method PayPal uses). Some banks, particularly smaller regional banks or credit unions, may have restrictions.
As a workaround, you can transfer money to a PayPal debit card instead if you have one, or use PayPal's cash-out feature at certain retailers like Walmart or CVS to withdraw cash directly.
Using a PayPal debit card instead of a bank transfer
If you have a PayPal debit card, you do not need to transfer money to your bank account at all. You can spend your PayPal balance directly using the card, or withdraw cash at any ATM that accepts Mastercard (most ATMs do). Withdrawals at ATMs cost $2.50 per transaction, so this is more expensive than a free bank transfer if you are withdrawing large amounts regularly.
The debit card is useful if you need cash immediately and do not have a linked bank account yet, or if you want to spend your PayPal balance without waiting for a transfer. You can order a PayPal debit card from the Wallet section if you do not have one.
Timing and what to expect after you transfer
Standard transfers take one to three business days. This means a transfer sent on Monday morning may arrive Tuesday or Wednesday, depending on your bank. A transfer sent on Friday will not arrive until Monday or Tuesday at the earliest. Holidays extend the timeline further.
Instant transfers arrive within minutes to 30 minutes. If 30 minutes pass and the money has not arrived, check your PayPal transaction history to confirm the transfer went through. Look for a confirmation number. If the transfer shows as completed in PayPal but has not arrived in your bank account after an hour, contact your bank to ask whether the deposit is pending.
Once the money arrives in your bank account, it is yours and PayPal has no further role. If there is a problem after that point, you are dealing with your bank, not PayPal.
Frequently Asked Questions
Can I transfer money to someone else's bank account from 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 to their PayPal account or email address. They can then transfer it to their own bank account.
What happens if I transfer money but then cancel it?
Standard transfers cannot be cancelled once they leave PayPal, which happens immediately when you confirm. Instant transfers also cannot be cancelled. If money was transferred by mistake, contact PayPal support with your confirmation number and ask them to reverse it. They may be able to help if the transfer has not yet arrived at your bank, but once your bank receives it, only your bank can reverse it.
Do I pay taxes on money I transfer from PayPal to my bank?
Transferring your own money from PayPal to your bank is not a taxable event. However, if the money in your PayPal account came from selling goods or services, that income is taxable. PayPal reports payments over $20,000 or 200 transactions to the IRS on Form 1099-K. Keep records of what the money was for.
Why does PayPal charge a fee for instant transfer but not standard transfer?
Standard transfer uses the ACH system, which is slow but cheap for PayPal to operate. Instant transfer uses a different network that costs PayPal more money, so they pass that cost to you. If speed does not matter, standard transfer saves you money.
Can I transfer PayPal balance to a credit card instead of a bank account?
No. PayPal only transfers to bank accounts (checking or savings) or to a PayPal debit card. You cannot transfer directly to a credit card. If you need to pay a credit card bill, transfer to your bank account first, then pay the credit card from there.