The fastest way to transfer PayPal money to your bank account
You can move money from PayPal to a linked bank account in one of two ways: a standard transfer that takes one to two business days, or an instant transfer that arrives within 30 minutes. Standard transfers are free. Instant transfers cost a flat fee (currently $0.25 per transfer in the US, though this varies by country). Both methods require you to have already linked a bank account to your PayPal account and verified it with PayPal.
The choice between them depends on whether you need the money right away. If you can wait a business day or two, use the standard transfer and pay nothing. If you need it within the hour, use instant transfer and accept the small fee.
Key Takeaways
- Standard transfers from PayPal to your bank account are free and take one to two business days; instant transfers cost $0.25 and arrive within 30 minutes.
- Your bank account must be linked to PayPal and verified before you can transfer money to it.
- The transfer amount cannot exceed your PayPal balance, and some accounts have daily or monthly transfer limits depending on your account history and verification status.
- Money transferred on a weekend or holiday will arrive on the next business day, even if you choose instant transfer.
How to link and verify your bank account with PayPal
Before you can transfer money out, PayPal needs to know your bank account is real and that you own it. Go to your PayPal account settings, select "Wallet" or "Banks and Cards" (the exact name depends on your account type), and choose "Link a Bank Account." Enter your routing number and account number. You can find both on a check, or call your bank's customer service line and ask for them.
PayPal will then deposit two small amounts—usually between $0.01 and $0.99 each—into that account. This takes three to five business days. Once the deposits appear in your bank account, go back to PayPal, select the account, and enter the two amounts. PayPal will confirm the account is verified. Only after verification can you transfer money out.
If you have already linked your account but never verified it, you will see a "Confirm" or "Verify" button next to the account name in your wallet. Click it and follow the same deposit-confirmation process.
Steps to transfer money using standard transfer
Open PayPal and go to your Wallet. Select "Transfer Money" or "Move Money" (wording varies by device and account type). Choose "Transfer to Your Bank." Select the verified bank account you want the money to go to. Enter the amount you want to transfer—it cannot be more than your PayPal balance. Review the details and confirm.
PayPal will show you a confirmation screen with the transfer amount, the receiving bank account (usually showing the last four digits), and the expected arrival date. The money will arrive in one to two business days. You will receive an email confirmation immediately, and another email when the transfer completes.
If you do not see "Transfer to Your Bank" as an option, your account may not have a verified bank account linked, or your account type may not support transfers. Check your wallet settings to confirm a bank account is verified.
How instant transfer works and when to use it
Instant transfer is the same process as standard transfer, except you select "Instant Transfer" instead of the standard option. The fee is $0.25 per transfer (in the US; other countries have different fees). The money will arrive in your bank account within 30 minutes on business days between 8 a.m. and 10 p.m. Eastern Time.
If you request an instant transfer outside those hours or on a weekend or holiday, it will process on the next business day during business hours. The $0.25 fee still applies even if the transfer is delayed. Not all accounts are may be able to access for instant transfer—PayPal restricts it based on account age, verification status, and transaction history. If you do not see instant transfer as an option, your account does not currently support it.
Use instant transfer only when you genuinely need the money within hours. The fee adds up if you transfer frequently, and the standard transfer is free if you can wait a business day.
Transfer limits and what happens if you hit them
Your first transfer from a newly verified account may be limited to a smaller amount—often $500 to $1,000—even if your PayPal balance is higher. As your account history grows and you complete more transfers without problems, PayPal raises these limits. There is no published schedule for when limits increase; it depends on your individual account activity.
Some accounts also have monthly transfer caps. If you hit your limit, you cannot transfer more until the calendar month resets. You can still receive money and spend it within PayPal, but you cannot move it to your bank account until the limit resets or PayPal raises your cap.
If you need to transfer more than your current limit allows, contact PayPal support through the Help Center. They can sometimes raise your limit manually, though they may ask you to verify additional information or wait for your account to age further.
What to do if your transfer does not arrive on time
Standard transfers take one to two business days. If it has been two business days and the money has not arrived, check your PayPal transaction history to confirm the transfer was sent. Look for a transaction labeled "Transfer to [Bank Name]" with a status of "Completed" or "In Progress." If the status says "Pending," the transfer has not left PayPal yet and will process soon.
If the status says "Completed" but the money is not in your bank account after two business days, the delay is likely on your bank's end, not PayPal's. Call your bank's customer service and give them the transfer date and amount. Ask them to trace the incoming ACH transfer. Banks can usually locate it within 24 hours.
For instant transfers, if the money does not arrive within 30 minutes during business hours, contact PayPal support immediately. Instant transfer failures are rare, but when they happen, PayPal can usually refund the $0.25 fee and resend the transfer at no charge.
Fees, taxes, and what PayPal reports to the IRS
Standard transfers are free. Instant transfers cost $0.25 per transfer in the US. Some countries charge different instant transfer fees; check your PayPal settings to see the exact fee before you confirm. There are no other fees for moving money from PayPal to your bank account.
PayPal reports transfers to the IRS only if you receive money through PayPal's payment services (selling goods, receiving payments for services, or peer-to-peer transfers). Simply transferring your own money from PayPal to your bank account is not a taxable event and is not reported to the IRS. However, if the money in your PayPal account came from selling items or providing services, that income is taxable regardless of whether you transfer it to your bank.
Keep your own records of what money came into PayPal and when you transferred it out. This is especially important if you use PayPal for business.
Frequently Asked Questions
Can I transfer money to someone else's bank account using PayPal?
No. Transfers from PayPal to a bank account can only go to a bank account in your own name that is linked to your PayPal account. To send money to another person's bank account, use PayPal's "Send Money" feature to transfer it to their PayPal account, or use a different service like Venmo or a wire transfer through your bank.
What if I link a bank account but PayPal never deposits the verification amounts?
Wait five business days from the date you linked the account. Verification deposits can take up to five days. If five business days have passed and you still do not see the deposits, check that you entered the correct routing and account numbers. If they are correct, contact PayPal support and ask them to resend the verification deposits or verify the account manually.
Do I have to pay taxes on money I transfer from PayPal to my bank account?
Only if the money came from taxable activity—selling items, providing services, or receiving payments. Simply moving your own money from PayPal to your bank is not taxable. If you are unsure whether your PayPal income is taxable, consult a tax professional or the IRS website for your situation.
Can I cancel a transfer after I have sent it?
Standard transfers cannot be cancelled once they leave PayPal, which happens almost immediately after you confirm. Instant transfers also cannot be cancelled. If you sent money to the wrong account by mistake, contact PayPal support right away. They may be able to recall the transfer if it has not yet arrived at the bank, but this is not may provide.
Why does PayPal say I am not may be able to access for instant transfer?
Instant transfer may be able to access depends on account age, verification status, and transaction history. New accounts or accounts with limited activity may not may have access to. As you use your PayPal account and complete more transfers, you may become may be able to access. You can also contact PayPal support to ask whether your account will be may be able to access in the future.