How to transfer money from PayPal to your bank account

You can move money from PayPal to a linked bank account in two ways: a standard transfer that takes one to three business days, or an instant transfer that arrives within 30 minutes. Standard transfers are free; instant transfers cost a flat fee (currently $0.25 in the US, but this varies by country). Both require that your bank account be verified in PayPal first — a step that takes a few days on its own.

The choice between them depends on whether you need the money right away. If you can wait a few days, use the standard transfer. If you need it today, use instant transfer and accept the fee.

Key Takeaways

  • Standard transfers from PayPal to your bank account are free and take one to three business days; instant transfers cost $0.25 and arrive within 30 minutes.
  • Your bank account must be verified in PayPal before you can transfer money, which requires confirming two small deposits PayPal makes to your account.
  • You initiate transfers from the Wallet section of PayPal on desktop or the Money tab on the mobile app.
  • Weekend and holiday transfers may take longer because banks do not process ACH transfers on those days.
  • If a transfer fails, PayPal will return the money to your PayPal balance within one to three business days.

Verify your bank account before your first transfer

PayPal will not let you transfer money to a bank account until that account is verified. Verification happens automatically when you add a new bank account: PayPal makes two small deposits (usually under $1 each) to your account within one to two business days. You then log into PayPal, go to your bank account settings, and enter the two amounts you see on your bank statement.

Once you confirm those amounts, your account is verified and you can transfer immediately. If you do not confirm the amounts within 30 days, PayPal withdraws the deposits and you have to start over. If you have already verified a bank account with PayPal in the past, you can skip this step — that account remains verified unless you remove it.

How to do a standard transfer (free, one to three days)

On desktop, log into PayPal, click Wallet at the top, then click Transfer Money. Select Transfer to your bank. Enter the amount you want to move, choose your bank account from the dropdown, and click Transfer Now. PayPal will show you the expected arrival date based on your bank's processing time.

On the mobile app, tap the Money tab at the bottom, tap Transfer Money, then To your bank. The steps are the same from there. You will receive a confirmation email immediately, but the money will not leave your PayPal balance until the transfer actually processes — usually within a few hours.

Standard transfers use the ACH network, which is how most banks move money between accounts. ACH transfers do not process on weekends or federal holidays, so a transfer you start on Friday evening may not arrive until Tuesday. PayPal's estimated arrival date accounts for this.

How to do an instant transfer (fee, 30 minutes or less)

The process is identical to a standard transfer, except you will see an Instant Transfer option with the fee displayed. Click it, confirm the fee, and the money leaves your PayPal balance immediately. It should land in your bank account within 30 minutes on business days. If you initiate an instant transfer after business hours or on a weekend, it will process the next business day but still within 30 minutes of the bank opening.

Instant transfers use a different network than ACH and do not depend on your bank's processing schedule. The $0.25 fee is flat regardless of the amount you transfer — so moving $10 costs the same as moving $1,000. Some PayPal account types (like PayPal Cash or PayPal Cash Plus) may have different instant transfer fees or limits; check your account settings to see what applies to you.

What to do if your transfer fails or is delayed

A transfer can fail for a few reasons: your bank account information changed, your bank rejected the transfer, or your account does not have enough balance. PayPal will send you an email explaining why. If the transfer failed, the money returns to your PayPal balance within one to three business days — you do not have to do anything.

If a transfer is simply delayed, check PayPal's status page to see if there are known issues with your bank. Some banks take longer than others to post ACH transfers, even within the one- to three-day window. If more than three business days have passed and the money has not arrived, contact PayPal support with your transfer confirmation number (in your email receipt) and your bank's customer service to track it down.

Limits on how much you can transfer

PayPal does not publish a single transfer limit that applies to all accounts. Your limit depends on your account history, how long you have used PayPal, and whether you have had disputes or chargebacks. A brand-new account might be limited to a few hundred dollars per transfer; an established account with no problems might be able to transfer thousands.

You can see your transfer limit by starting a transfer and looking at the maximum amount the system will let you enter. If you hit your limit and need to transfer more, you can either wait (limits sometimes increase over time) or split the transfer into multiple transactions on different days. Contact PayPal support if you believe your limit is too low for your situation, though they rarely override it.

Fees and what they cover

Standard transfers are free. Instant transfers cost $0.25 in the US; the fee is higher in some other countries. PayPal deducts the instant transfer fee from your PayPal balance, not from the amount that arrives in your bank account — so if you transfer $100 with instant transfer, $100 arrives in your bank and $0.25 comes out of your PayPal balance.

There are no other fees for transferring to a linked bank account. Your bank may charge you a fee for receiving an ACH transfer, but most banks do not — check your bank's fee schedule if you are unsure. If you transfer to a bank account that is not yours (which PayPal does not recommend), your bank may flag it as suspicious and hold the money.

Frequently Asked Questions

Can I transfer to someone else's bank account?

PayPal only lets you transfer to a bank account in your own name. If you try to add an account that does not match your PayPal name, verification will fail. To send money to someone else, use PayPal's send money feature or a peer-to-peer transfer instead.

What if my bank account information changed?

Update your bank account in PayPal's settings before you attempt a transfer. If you have already started a transfer to an old account, contact PayPal support immediately — they may be able to stop it before it processes. If it goes through, your bank will reject it and the money will return to PayPal within one to three business days.

Why is my transfer taking longer than expected?

ACH transfers can take up to three business days even if PayPal estimated one or two. Weekends and federal holidays add time because banks do not process ACH on those days. If more than three business days have passed, check PayPal's status page or contact your bank to confirm they received the transfer.

Can I cancel a transfer after I start it?

You can cancel a standard transfer only if it has not yet left your PayPal account — usually within a few hours of starting it. Once it enters the ACH network, your bank has to reject it to stop it. Instant transfers cannot be cancelled once initiated. Check your transfer status in PayPal to see if cancellation is still an option.

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, the money you earned through PayPal (sales, invoices, or payments received) may be taxable depending on the amount and your location. Keep records of what the money came from, not just that you transferred it.