PayPal takes the money from your linked bank account or card, holds it briefly, and sends it to the recipient's PayPal account or bank

When you send money through PayPal, you're not handing over cash. You're instructing PayPal to move funds from whatever you've connected to your account—a debit card, credit card, or bank account—to someone else's PayPal wallet or their bank. PayPal sits in the middle, verifying both sides exist, moving the money, and keeping a record. The whole thing usually takes seconds to a few minutes on your screen, though the actual money movement behind the scenes takes longer.

The speed and cost depend on what you're sending, who you're sending it to, and which payment method you chose. Sending money to another PayPal user in the US costs nothing if you use your bank account or PayPal balance. Sending to someone's bank account costs a flat fee. International transfers cost more and take days. Credit card payments to PayPal always cost you a percentage.

Key Takeaways

  • PayPal transfers from your bank account or card to another person's PayPal account are free within the US if both accounts are verified.
  • Sending money directly to someone's bank account (not their PayPal wallet) costs a flat fee and takes one to three business days.
  • Paying with a credit card through PayPal costs you a percentage fee, usually 2.2% plus $0.30 per transaction.
  • PayPal holds your money briefly while it confirms both accounts are real, then releases it—this is why transfers show as "pending" for a few minutes.
  • If the recipient's account is closed or flagged, PayPal reverses the transfer and returns your money, though this can take five to ten business days.

What happens when you hit send

You enter the recipient's email address or phone number, the amount, and choose your payment method. PayPal checks its database to see if that email or phone is attached to an active account. If it is, PayPal marks the transfer as pending and shows it on your screen immediately. If it's not, PayPal asks whether you want to send money to an unclaimed account anyway—the recipient will get a notification to claim it, but you're taking a small risk that the email is wrong.

Once you confirm, PayPal pulls the money from your chosen source. If you picked your bank account, PayPal initiates an ACH transfer—a standard electronic bank-to-bank instruction that takes one to two business days to actually clear. If you picked a debit card, the charge posts to your card within minutes. If you picked your PayPal balance (money you've received or loaded), it moves instantly because it's already PayPal's money sitting in your account.

While this is happening, PayPal is also checking both accounts for fraud flags. It looks at your history, the recipient's history, the amount, and whether either account has been reported as compromised. If something looks wrong, PayPal can freeze the transfer, ask you for extra verification, or block it outright. Most transfers pass this check silently in seconds.

How long it actually takes

On your screen, the transfer shows as sent within seconds. But the money doesn't always arrive at the same speed. If you're sending to another PayPal user's wallet in the US, it lands in their account within minutes—usually by the time they refresh their page. If you're sending to their bank account, PayPal initiates an ACH transfer that takes one to three business days, depending on their bank's processing speed. Weekends and holidays add time; a Friday transfer might not clear until Tuesday.

International transfers are slower. PayPal uses correspondent banks to move money across borders, and each bank in the chain adds processing time. A transfer to Europe or Canada typically takes three to five business days. Transfers to some countries take a week or longer. PayPal shows you the expected arrival date before you confirm, so check that before you send.

If you're sending money to an unclaimed account, the recipient has 30 days to claim it. Until they do, the money sits in PayPal's system. If they don't claim it within 30 days, PayPal returns it to you.

Fees you might pay

Sending money to another PayPal user's account in the US costs nothing if you use your bank account, PayPal balance, or debit card. This is PayPal's main draw for peer-to-peer transfers. But if you use a credit card to send money to another person, PayPal charges you 2.2% of the amount plus $0.30. That's because credit card companies charge PayPal a fee for processing, and PayPal passes it to you.

Sending money directly to someone's bank account (not their PayPal wallet) costs $0.25 in the US. This is a flat fee regardless of amount. International transfers cost more: usually $4.99 for standard delivery (three to five business days) or $14.99 for express delivery (one to two business days). Some countries have higher fees or aren't supported at all.

If you're receiving money, you don't pay a fee when another PayPal user sends it to you. But if someone sends you money using a credit card, PayPal takes 2.2% plus $0.30 from what you receive—so if someone sends you $100 by credit card, you get $97.50.

What happens if something goes wrong

If you send money to the wrong person, PayPal can't reverse it instantly. Once the money leaves your account and lands in theirs, it's theirs. You have to contact the recipient and ask them to send it back. If they won't, you can file a dispute with PayPal, but PayPal will only refund you if the recipient agrees or if PayPal finds evidence of fraud or unauthorized use. This is why you should always double-check the recipient's email or phone number before hitting send.

If the recipient's account is closed, flagged for fraud, or restricted, PayPal stops the transfer and returns your money. This can take five to ten business days. You'll see the reversal in your transaction history, and the money goes back to whatever source you sent it from—your bank account, card, or PayPal balance.

If you sent money to an unclaimed account and the recipient never claims it, PayPal automatically returns it to you after 30 days. If you're waiting for money someone sent you and it's been more than a week, contact PayPal support with the transaction ID. They can check whether the transfer is stuck in processing or if there's a problem with the recipient's account.

Sending money internationally

PayPal works in more than 200 countries, but not all countries can send or receive. Before you send, PayPal will tell you whether the recipient's country is supported. If it is, PayPal converts your money to the recipient's currency at its current exchange rate, adds a small markup (usually 2% to 3%), and sends it through its network of partner banks.

The recipient receives the money in their local currency in their PayPal account or bank, depending on what you chose. If you're sending to a bank account, the recipient's bank handles the final conversion and deposit, which can add another day or two. PayPal shows you the exact amount the recipient will receive before you confirm, so there are no surprises.

Protecting yourself from fraud

PayPal uses encryption and fraud detection to protect both sides of a transfer. Your account is protected by your password and, if you've set it up, two-factor authentication—a code sent to your phone or email that you have to enter to confirm a transfer. If someone gains access to your account and sends money without your permission, you can report it as unauthorized and PayPal will investigate. If PayPal confirms it was fraud, it refunds you.

On the receiving end, if someone sends you money and then claims it was unauthorized, PayPal investigates. If the sender's bank confirms the transfer was fraudulent, PayPal reverses it and takes the money back from your account. This is why you should never send money to someone you don't trust or for something that sounds too good to be true.

Never give your PayPal password to anyone, and never click a link in an email claiming to be from PayPal unless you initiated contact first. Scammers send fake PayPal emails to steal login information. If you're unsure, go directly to PayPal.com in your browser instead of clicking a link.

Frequently Asked Questions

Can I cancel a PayPal transfer after I send it?

If the transfer is still pending—usually within the first few minutes—you can cancel it from your transaction history. Once it's been delivered to the recipient's account, you can't cancel it. You have to contact the recipient and ask them to send it back, or file a dispute if you believe it was sent by mistake or fraud.

Why does my transfer say pending?

PayPal marks transfers as pending while it verifies both accounts and checks for fraud. This usually takes a few minutes. If it stays pending for more than an hour, there may be a problem with your bank account or the recipient's account. Check your email for messages from PayPal asking for more information.

What's the difference between sending to a PayPal account and a bank account?

Sending to a PayPal account is free and instant. Sending to a bank account costs $0.25 and takes one to three business days because PayPal has to initiate an ACH transfer through the banking system. Ask the recipient which they prefer before you send.

Do I have to use PayPal's exchange rate for international transfers?

Yes. PayPal sets the exchange rate and adds a markup. You can see the exact rate and amount before you confirm, so you can decide whether to proceed. Some banks and money transfer services offer better rates, so compare if you're sending a large amount internationally.

What happens if I send money to someone and they say they never received it?

Check your transaction history to see the status. If it shows as delivered, the money is in their account or on its way to their bank. Ask them to check their PayPal account or their bank's pending deposits. If it shows as pending or failed, contact PayPal with the transaction ID and they can investigate.