What you can and cannot do with a PayPal gift card
A PayPal gift card is a prepaid card loaded with a set amount of money. You cannot transfer the balance directly into a bank account the way you might move money between two bank accounts. However, you have several real ways to get that money into your bank account — some fast, some with fees, and some that take longer but cost nothing.
The path you choose depends on what type of PayPal gift card you have and whether you want to keep the card or empty it completely. A physical PayPal card works differently from a digital code you received by email, and each has its own set of options.
Key Takeaways
- You cannot transfer a PayPal gift card balance directly to a bank account, but you can move the money through your PayPal account first.
- If you have a physical PayPal card, you can use it to withdraw cash at ATMs or make purchases, then use that cash to deposit into your bank account.
- If you have a digital PayPal gift card code, you must first add it to a PayPal account, then transfer the balance from PayPal to your bank account.
- PayPal charges a fee (usually $1.50 to $2.00) to transfer money to a linked bank account, but the transfer takes one to three business days.
- If you have a physical PayPal Prepaid Mastercard, you can withdraw cash at ATMs for a fee, which avoids the PayPal transfer fee but costs $2.00 to $3.00 per withdrawal.
How to move a digital PayPal gift card code to your bank account
If someone sent you a PayPal gift card as a digital code (usually in an email or text), you must first add it to a PayPal account. Go to PayPal.com, sign in or create an account, and look for "Add a gift card" or "Redeem a code" in your account menu. Enter the code exactly as it appears, including any hyphens or spaces.
Once the code is redeemed, the money sits in your PayPal balance. From there, you can transfer it to a linked bank account. Go to your PayPal wallet, select "Transfer money," choose "Transfer to your bank," and enter the amount. PayPal will charge you a fee (usually $1.50 to $2.00 for transfers under $25, or a percentage for larger amounts) and the money will arrive in one to three business days.
If you do not have a PayPal account yet, you will need to create one with your name, email, and a password. You will also need to link a bank account or debit card to complete the transfer. PayPal will verify your bank account by depositing two small amounts (usually under $1 each) and asking you to confirm the amounts — this can take a few days.
Using a physical PayPal card to access your money
If you have a physical PayPal Prepaid Mastercard, you have two main options: spend it directly or withdraw cash and deposit it into your bank account.
The simplest approach is to use the card to make purchases or pay bills online, then use the money you would have spent from your bank account to deposit cash into your account instead. This is free but requires you to change your spending habits temporarily.
If you want the cash directly, you can withdraw money at ATMs. Most ATM withdrawals cost $2.00 to $3.00 per transaction, depending on the ATM operator and your card issuer. Once you have the cash, you can deposit it into your bank account at a branch, an ATM, or through mobile deposit if your bank offers it. This method costs more than a PayPal transfer but gives you cash when ready.
Comparing the cost and speed of each method
| Method | Cost | Speed | What you need |
|---|---|---|---|
| PayPal transfer to bank account | $1.50–$2.00 (or percentage for large amounts) | 1–3 business days | PayPal account, linked bank account |
| ATM withdrawal from physical card | $2.00–$3.00 per withdrawal | when ready | Physical PayPal card, ATM access |
| Direct spending (no bank transfer) | Free | when ready | Physical PayPal card or PayPal account |
| Debit card transfer (if available) | Usually free | 1–3 business days | PayPal account, linked debit card |
Why PayPal charges fees for bank transfers
PayPal charges a fee because they are moving money between two different financial systems — their own network and your bank's network. The fee covers the cost of that transfer and the time it takes to process. The fee is small, but it adds up if you make many transfers.
Some people avoid the fee by using their PayPal balance to pay bills directly through PayPal, or by spending the money on purchases instead of transferring it. Others accept the fee as the cost of getting their money into their main bank account quickly.
What happens if your gift card code does not work
If you try to redeem a PayPal gift card code and it does not work, the code may have already been used, may be expired, or may have been entered incorrectly. Check that you typed it exactly as it appears, including all hyphens and spaces. If it still does not work, contact the person who gave you the card to confirm the code is correct.
If the code is correct but PayPal still rejects it, you may need to contact PayPal customer service. You can reach them through the PayPal website by going to the Help Center and selecting "Contact Us." Have the code and the email or receipt from the person who sent it ready when you contact them.
Frequently Asked Questions
Can I transfer a PayPal gift card to someone else's bank account?
No. Once you redeem a gift card code into your PayPal account, the money belongs to you and can only be transferred to a bank account in your name. If you want to give the money to someone else, you can send it to them through PayPal's "Send money" feature, and they can then transfer it to their own bank account.
What if I do not have a bank account to link to PayPal?
You can still use the money by spending it directly with the physical card at stores or online, or by withdrawing cash at an ATM. If you want to move the money into a bank account later, you will need to open one first. Many banks and credit unions offer basic checking accounts with low or no fees.
How long does it take for money to show up in my bank account?
PayPal transfers usually take one to three business days. Weekends and holidays do not count as business days, so a transfer requested on Friday may not arrive until Tuesday. Your bank may also take an extra day to process the deposit once PayPal sends it.
Is there a way to transfer without paying the fee?
The only free way to move the money is to spend it directly using the physical card or to use it to pay bills through PayPal. If you need the money in your bank account and want to avoid fees, you can withdraw cash from an ATM and deposit it yourself, though ATM withdrawals also charge a fee.
What if my PayPal account gets closed before I transfer the money?
If PayPal closes your account, you may lose access to the balance. This is rare, but it can happen if PayPal suspects fraud or if you violate their terms. To protect yourself, transfer the money to your bank account as soon as you redeem the code, rather than letting it sit in your PayPal balance.