Yes, you can transfer money from PayPal to your bank account
PayPal lets you move money out to a linked bank account in a few different ways, depending on how fast you need it and whether you want to pay a fee. The slowest option is free and takes three to five business days. The faster options cost money but get your cash there in one or two business days. You choose which method based on your situation.
Before you can transfer anything, you need to link your bank account to PayPal. This means giving PayPal your routing number and account number so they know where to send the money. PayPal verifies the account by depositing two small amounts (usually under a dollar each) into your bank account, then asking you to confirm those amounts. Once that's done, you can transfer whenever you want.
Key Takeaways
- You must link your bank account to PayPal first by providing your routing and account numbers, which PayPal verifies with two small test deposits.
- Standard transfers are free but take three to five business days, while faster options cost a percentage of the amount you're moving.
- You can transfer from the PayPal app or website by going to your wallet, selecting your bank account, and choosing your transfer speed.
- PayPal holds some transfers for a review period, especially if the amount is large or your account is new, which can add extra days.
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), then find "Wallet" or "Bank Accounts." Select "Link a Bank Account" and enter your bank's name. PayPal will ask for your routing number and account number — you can find both on a check or by logging into your bank's website.
After you enter those numbers, PayPal deposits two small amounts into your account, usually within one or two business days. Check your bank statement for those deposits (they'll show as coming from PayPal), then go back to PayPal and enter the exact amounts. Once you confirm them, your account is linked and ready to use.
If you don't have checks or can't find your routing number, call your bank's customer service line. They can give you both numbers over the phone. You only have to do this linking step once — after that, you can transfer money whenever you need to.
The three ways to transfer money and what each costs
Standard transfer is free and takes three to five business days. This is the slowest option but costs nothing. PayPal processes it right away, but your bank takes a few days to receive and post the money to your account.
when ready transfer gets money to your account in minutes, but PayPal charges a percentage of the amount you're moving — usually around 1.5 percent. So if you transfer $100, you'd pay about $1.50 and receive $98.50 in your bank account. The exact percentage varies and PayPal shows you the fee before you confirm.
Next business day transfer is a middle option that arrives the next business day (or sometimes the same day if you transfer before a certain time). This also costs a percentage, usually similar to when ready transfer. Not all PayPal accounts have access to this option yet — PayPal is rolling it out gradually.
Choose based on what you need: if you can wait, use standard and save the fee. If you need the money quickly and can afford the percentage, use when ready or next business day.
How to actually move the money
Open PayPal and go to your wallet. You'll see your balance and any linked bank accounts listed below it. Tap or click on the bank account you want to transfer to, then select "Transfer Money." PayPal will ask how much you want to move and which speed you want — it will show you the fee (if any) before you confirm.
Review the amount and fee, then confirm the transfer. PayPal will show you a confirmation number. Take a screenshot or write it down in case you need to reference it later. The money is now on its way — you don't have to do anything else.
Check your bank account to see when it arrives. Standard transfers usually show up within three to five business days. when ready transfers should appear within minutes, though occasionally they take up to an hour. If more than a week passes and you don't see the money, contact PayPal support with your confirmation number.
When PayPal holds your transfer for review
Sometimes PayPal doesn't send your transfer right away — instead, it holds it for a review period that can last anywhere from a few hours to several days. This usually happens if the amount is large, if your account is new, or if PayPal's system flags something as unusual. You'll see a message in your PayPal account saying your transfer is under review.
There's nothing you can do to speed this up. PayPal is checking that the transfer is legitimate and that your account is in good standing. Once the review is done, the transfer goes through using the speed you originally chose. If you chose standard (free), the three to five business days starts counting from when the review ends, not from when you first requested it.
If your transfer has been on hold for more than a week, contact PayPal support. Bring your confirmation number and the date you requested the transfer.
What to do if the transfer fails
A transfer can fail if your bank account information is wrong, if your bank rejects it for some reason, or if there's a technical problem on PayPal's end. PayPal will send you a notification saying the transfer failed and usually explains why. The money goes back to your PayPal balance automatically — you haven't lost it.
If the reason is a wrong account number, go back and check your routing and account numbers against your bank statement or your bank's website. If they're correct, contact your bank to ask if they rejected the transfer and why. Some banks reject transfers from payment apps if they don't recognize them, or if your account has restrictions.
Once you've fixed the problem, try the transfer again. If it fails a second time, contact PayPal support with your confirmation number and the failure message. They can see what happened on their end and may be able to help.
Frequently Asked Questions
How long does a standard transfer really take?
PayPal processes it the same day you request it, but your bank takes three to five business days to receive and post the money. Weekends and bank holidays don't count as business days, so a Friday transfer might not show up until Wednesday. If PayPal puts it under review first, add however long the review takes.
Can I transfer to someone else's bank account?
No. You can only transfer to a bank account in your own name that you've linked to your PayPal account. If you want to send money to someone else, use PayPal's "Send Money" feature to transfer to their PayPal account or email address instead.
What if I don't have a bank account yet?
You'll need to open one before you can transfer money out of PayPal. Many banks and credit unions offer accounts with no minimum balance or monthly fees. If you're new to banking, look for accounts designed for people starting out, or ask your bank about their basic checking options.
Is there a limit to how much I can transfer?
PayPal sets limits based on your account age and history, and these limits change. Log into your account and go to your wallet to see your current transfer limit. If you need to move more than your limit allows, you can request a limit increase, though PayPal may ask you to wait or provide more information about your account.
Do I pay taxes on money I transfer from PayPal to my bank?
Not on the transfer itself — you're just moving money you already have. But if that money came from selling things or providing services, you may owe taxes on the income. Keep records of where the money came from so you can report it correctly to the IRS if needed.