Yes, you can send money from PayPal to your bank account, and it's the most common way to get cash out
PayPal lets you transfer your balance to a linked bank account through a process called a bank transfer. The money leaves your PayPal account and lands in your checking or savings account. This is different from spending directly from PayPal—you're actually moving the funds out of the PayPal system entirely.
The transfer itself is free, but it takes time. Standard transfers take three to five business days. PayPal also offers an when ready transfer option that moves money within 30 minutes, but that service costs between 25 cents and $2 per transfer depending on the amount.
Before you can transfer anything, you need to link a bank account to your PayPal account and verify it. PayPal will deposit two small amounts (usually under $1 each) into that account, and you'll need to confirm those amounts in your PayPal settings to prove you own the account. This verification step typically takes one to two business days.
Key Takeaways
- Standard bank transfers from PayPal are free but take three to five business days to complete.
- You must link and verify a bank account before any transfer can happen, which involves confirming two small deposits PayPal sends to that account.
- when ready transfers are available for a fee of 25 cents to $2 and move money within 30 minutes instead of days.
- PayPal holds some transfers for review if the amount is large, the account is new, or the activity looks unusual—this can add several days to the timeline.
How to link your bank account to PayPal
Log into your PayPal account and go to the Wallet section. Select "Link a bank account" and enter your routing number and account number. You can find both on a check, or call your bank to ask for them. PayPal will ask whether the account is checking or savings—answer accurately, because a mismatch can cause the transfer to fail or be delayed.
After you enter the account details, PayPal will send two small deposits to that account within one to two business days. Once they arrive, go back to your PayPal Wallet, select the account, and choose "Confirm bank account." Enter the two amounts PayPal deposited, and the account will be verified. Only then can you transfer money out.
If you don't see the deposits after two business days, check your bank's pending transactions or contact your bank to confirm they received them. Some banks hold small deposits for review. If the deposits never arrive, you may need to re-enter your account information or contact PayPal support.
The difference between standard and when ready transfers
Standard transfers are free and take three to five business days. PayPal batches these transfers and processes them in groups, which is why the timeline is longer. This is the right choice if you're not in a hurry and want to avoid fees.
when ready transfers move money within 30 minutes and cost between 25 cents and $2 depending on the transfer amount. The fee is deducted from your PayPal balance before the transfer happens, so if you're transferring $50 and the fee is $1, your bank account receives $49. when ready transfers are available only if your account is in good standing and you've verified your identity with PayPal.
Not all bank accounts may have access to for when ready transfers. Some smaller banks or credit unions don't participate in the network PayPal uses. If your bank isn't supported, PayPal will tell you when you try to set up an when ready transfer, and you'll fall back to the standard option.
When PayPal holds or delays your transfer
PayPal reviews transfers for fraud and compliance reasons. A transfer may be held if the amount is unusually large for your account, your account is new, you're transferring to a bank account you just linked, or the activity looks different from your normal pattern. When this happens, PayPal will notify you and may ask you to confirm the transfer or provide information about where the money came from.
A hold can add anywhere from a few hours to several business days on top of the normal transfer time. You can't speed this up by contacting PayPal—the review happens automatically. If PayPal suspects fraud or money laundering, it may deny the transfer entirely and hold the funds in your PayPal account while it investigates.
To reduce the chance of a hold, keep your account activity consistent, verify your identity with PayPal (including uploading a photo ID if asked), and transfer smaller amounts regularly rather than one large lump sum. If you're moving a significant amount, consider splitting it into two or three transfers over a few days.
What to do if your transfer fails or doesn't arrive
If a transfer fails, PayPal will return the money to your PayPal balance within one to three business days and send you a notification explaining why. The most common reasons are a wrong routing number, a closed bank account, or a mismatch between the account type you selected and the actual account type.
If the money doesn't arrive in your bank account after the expected timeline has passed, first check your bank's pending transactions and contact your bank to confirm they received it. Some banks hold incoming transfers for review. If your bank says they never received it, log into PayPal and check the transaction history to see the status. If PayPal shows the transfer as complete but your bank doesn't have it, you'll need to contact PayPal support with your transaction ID and bank details.
Keep the transaction ID from PayPal handy—it's the reference number PayPal assigns to each transfer. Your bank will need this number to investigate if the transfer went missing.
Transferring money from PayPal to a different bank account
You can link multiple bank accounts to PayPal and transfer to any of them. To add another account, go to your Wallet, select "Link a bank account," and repeat the verification process. Once verified, you can choose which account to transfer to each time you initiate a transfer.
If you want to change which account is your default, go to your Wallet settings and select the account you prefer. This doesn't affect your ability to transfer to other linked accounts—it just sets which one appears first when you start a transfer.
You cannot transfer PayPal funds to someone else's bank account. Transfers only go to accounts in your own name. If you need to send money to another person, you'll need to use PayPal's peer-to-peer transfer feature (which sends money to their PayPal account or email) or withdraw the cash and send it another way.
Frequently Asked Questions
How long does it really take to get money from PayPal to my bank?
Standard transfers take three to five business days from the moment you initiate them. Weekends and holidays don't count as business days. If PayPal holds the transfer for review, add one to three extra days. when ready transfers take 30 minutes but cost a fee.
Can I transfer money if my PayPal account is new?
Yes, but new accounts are more likely to have transfers held for review. PayPal may ask you to verify your identity or provide information about the source of the funds. Complete any verification PayPal requests, and the transfer will usually go through once the review is done.
What if I entered the wrong bank account number?
PayPal will reject the transfer and return the money to your PayPal balance within one to three business days. You'll receive a notification explaining the problem. Re-enter the correct account information and try again. If you're unsure of your account number, check a blank check or call your bank.
Do I have to 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 may be taxable depending on the amount and your location. PayPal reports transactions to the IRS, so keep records of what the money represents.
Can I transfer money from PayPal to a savings account instead of checking?
Yes. When you link your bank account, PayPal asks whether it's checking or savings. Select the correct type, and you can transfer to either one. Make sure you answer accurately—if you say checking but link a savings account, the transfer may fail.