Yes, you can transfer money from PayPal to a bank account in the United States
PayPal lets you move funds to a linked bank account through a process called a standard transfer. The money goes directly from your PayPal balance to your checking or savings account. The transfer is free, but it takes one to three business days to complete. You can also use an when ready transfer option, which moves the money in minutes, but PayPal charges a flat fee (usually $0.25 to $2.00 depending on the amount).
Before you can transfer anything, you need to link a bank account to your PayPal account and confirm that you own it. PayPal will send two small deposits to your bank account — typically between $0.01 and $0.99 each — and you'll need to log into PayPal and enter those amounts to verify ownership. This verification step protects both you and PayPal from fraud.
Key Takeaways
- Standard transfers from PayPal to a bank account are free and take one to three business days.
- when ready transfers cost $0.25 to $2.00 and complete within minutes, but are only available if your account is in good standing.
- You must link and verify your bank account before any transfer can happen, which involves confirming two small test deposits PayPal sends to your bank.
- PayPal holds transfers for 24 hours if your account is new or if you haven't transferred money before, as a fraud prevention measure.
- If your transfer fails, PayPal will return the money to your PayPal balance within one to three business days.
How to link and verify your bank account
Go to your PayPal account settings and select "Wallet" or "Banks and Cards" (the exact name depends on whether you're on desktop or mobile). Click "Link a Bank Account" and 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.
After you enter this information, PayPal will tell you that two small deposits are on the way. Check your bank account in one to two business days. When you see the deposits, go back to PayPal, click "Confirm Bank Account," and enter the two amounts. Once PayPal confirms the match, your bank account is verified and ready to use.
If you don't see the deposits after three business days, contact your bank to confirm they arrived. Some banks hold deposits from third parties for a few extra days. If your bank says the deposits never arrived, you can ask PayPal to resend them or try linking a different account.
Standard transfers versus when ready transfers
A standard transfer is free and takes one to three business days. PayPal processes the transfer the same day you request it (if you request it before 7 p.m. ET on a weekday), but your bank may take an extra day or two to post the money to your account. This timing depends on your bank, not PayPal. Standard transfers work for any linked bank account that has been verified.
An when ready transfer moves money to your account within minutes and costs a flat fee. The fee varies: PayPal typically charges $0.25 for transfers under $10, $0.75 for transfers between $10 and $200, and $2.00 for transfers over $200. when ready transfers are only available if your PayPal account is in good standing (no disputes, chargebacks, or policy violations in the past 180 days) and if your bank participates in the when ready transfer network. Not all banks do, so PayPal will tell you whether your bank qualifies when you try to make an when ready transfer.
If you transfer money regularly, standard transfers save you money. If you need the cash urgently and your bank qualifies, when ready transfer is worth the fee.
What happens during the first 24 hours after you request a transfer
When you request a transfer from a new PayPal account or from an account that has never transferred money before, PayPal holds the transfer for 24 hours before sending it to your bank. This is a fraud prevention step. During this 24-hour window, you can cancel the transfer if you change your mind — the money stays in your PayPal balance.
After your first successful transfer, PayPal usually removes this 24-hour hold for future transfers. However, if your account shows signs of unusual activity (like a sudden large transfer or a change in login location), PayPal may reinstate the hold on that specific transfer.
If you need the money urgently and your account is new, an when ready transfer is your only option to bypass the 24-hour hold, though you'll pay the fee.
When a transfer fails and how to fix it
A transfer can fail for a few reasons: your bank account information is incorrect, your bank rejected the transfer, or PayPal flagged the transfer as suspicious. When a transfer fails, PayPal sends you an email explaining why. The money returns to your PayPal balance within one to three business days.
If the problem is incorrect account information, go back to your PayPal wallet, update your bank details, and try again. If your bank rejected the transfer, call your bank and ask why. Common reasons include a closed account, a mismatch between the name on your PayPal account and the name on your bank account, or a fraud alert your bank triggered. Once you fix the issue with your bank, you can request the transfer again.
If PayPal flagged the transfer as suspicious, you may see a message asking you to confirm the transfer or provide additional information. Follow the prompts in your PayPal account. If you're locked out or can't resolve it, contact PayPal's Resolution Center through your account dashboard.
Limits on how much you can transfer
PayPal does not publish a single transfer limit that applies to all accounts. Instead, limits depend on your account history, verification status, and activity level. A brand-new account with no transaction history may have a limit of a few hundred dollars per transfer. An established account with years of activity and no disputes may have a limit of several thousand dollars per transfer.
To find your specific limit, go to your PayPal account settings, select "Wallet," and look for "Transfer Limits" or "Sending Limits." PayPal will show you how much you can transfer in a single transaction and how much you can transfer in a rolling 24-hour or 30-day period.
If you need to transfer more than your limit allows, you have two options: split the transfer into multiple transactions over several days, or contact PayPal and ask for a limit increase. PayPal reviews limit increase requests based on your account history and may approve an increase if your account is in good standing.
What to do if your bank account is no longer active
If you try to transfer money to a bank account that has been closed, PayPal will reject the transfer and return the money to your PayPal balance. You'll receive an email explaining that the account is no longer valid.
To fix this, remove the closed account from your PayPal wallet and link a new, active bank account. Go to your PayPal settings, select "Wallet," find the closed account, and click "Remove." Then follow the steps to link and verify a new account. Once the new account is verified, you can request the transfer again.
If you've already removed the old account but PayPal still shows it in your wallet, clear your browser cache and try again. If the account still appears, contact PayPal support through your account dashboard.
Frequently Asked Questions
How long does a standard transfer actually take?
PayPal processes the transfer the same day you request it (if before 7 p.m. ET on a weekday), but your bank takes one to three business days to post it. Weekends and holidays add extra time. If you request a transfer on Friday evening, you may not see it until Tuesday or Wednesday.
Can I transfer money to someone else's bank account?
No. You can only transfer money to a bank account that is linked to your own PayPal account. If you want to send money to another person, use PayPal's "Send Money" feature to transfer funds directly to their PayPal account or email address. They can then transfer it to their own bank account.
What if PayPal says my bank account is not may be able to access for when ready transfers?
Not all banks participate in PayPal's when ready transfer network. If your bank is not may be able to access, you can still use standard transfers for free. Some smaller regional banks and credit unions are not part of the network. If you want when ready transfers, you may need to link a different account at a larger bank, or stick with standard transfers.
Do I pay taxes on money I transfer from PayPal to my bank account?
Transferring your own money from PayPal to your bank is not a taxable event. However, the money in your PayPal account may have come from taxable income (like sales or freelance work). You owe taxes on that income regardless of whether it sits in PayPal or your bank. Keep records of where the money came from.
Can I reverse a transfer after I've requested it?
Yes, but only during the first 24 hours if your account is new or if PayPal has placed a hold on the transfer. After 24 hours, the transfer is processing and you cannot cancel it. Once the money reaches your bank account, you would need to contact your bank to reverse it, not PayPal.