Yes, you can transfer money from PayPal to a bank account
PayPal lets you move money to a linked bank account in the United States, and the process is straightforward once your account is set up. You initiate the transfer through PayPal's website or app, choose the bank account you want the money to go to, and PayPal sends it. The money arrives in your bank account after a set number of business days — usually one to three, depending on which transfer speed you choose.
The catch is that your bank account has to be linked to your PayPal account first, and PayPal verifies it by depositing two small amounts (usually under a dollar each) and asking you to confirm the numbers. Once that's done, you can transfer whenever you want, though faster transfers cost a small fee.
Key Takeaways
- You link your bank account to PayPal by providing your routing and account numbers, then confirming two small test deposits PayPal makes to that account.
- Standard transfers take one to three business days and have no fee; when ready transfers arrive within 30 minutes but cost 1.75% of the amount you're sending.
- You can only transfer money that's actually in your PayPal balance — money that's pending, held, or in a linked card does not transfer.
- PayPal does not transfer on weekends or federal holidays, so a Friday transfer will not arrive until Monday at the earliest.
How to link your bank account to PayPal
Go to your PayPal account settings and select "Linked bank accounts and cards" or "Wallet" depending on which version of PayPal you use. Click "Link a bank account" and enter your routing number and account number — you can find both on a check or by logging into your bank's website. PayPal will then make two small deposits to that account, usually within one to two business days.
Once those deposits show up in your bank account, go back to PayPal and confirm the amounts. PayPal will then mark the account as verified and you can start transferring. If you enter the wrong routing or account number, the deposits will bounce back and you'll have to start over, so double-check before you submit.
Standard transfer versus when ready transfer
Standard transfer is free and takes one to three business days. PayPal processes it the same day you request it, but your bank takes one to three days to actually deposit the money into your account. The exact timing depends on your bank — some are faster than others. This is the option most people use because there's no fee.
when ready transfer costs 1.75% of the amount you're sending and the money arrives in your bank account within 30 minutes, usually much faster. If you're transferring $100, the fee is $1.75, so you'd receive $98.25 in your bank account. when ready transfer is useful if you need the money right away, but the fee adds up if you transfer frequently.
What money can and cannot be transferred
You can only transfer money that's sitting in your PayPal balance — the money that shows as "Available" when you log in. Money that's pending (waiting to clear), on hold (PayPal is reviewing it), or in a linked card or credit line cannot be transferred to your bank account.
If you receive a payment that's marked as pending, you usually have to wait for it to clear before you can transfer it. Pending times vary: a payment from another PayPal user might clear in minutes, while a payment from a credit card might take several days. If PayPal is holding money for review, you can contact PayPal to ask why, but you won't be able to transfer it until the hold is lifted.
Timing and business day rules
PayPal processes transfer requests during business hours on business days only — Monday through Friday, excluding federal holidays. If you request a standard transfer on a Friday afternoon, PayPal may not process it until Monday, and then your bank takes another one to three days, so the money might not arrive until Wednesday or Thursday.
when ready transfers also follow this rule: if you request one after 5 p.m. Eastern Time on a Friday, it will not go through until Monday morning. The 30-minute clock starts when PayPal actually processes the request, not when you click the button. During major holidays like Thanksgiving or Christmas, processing can be delayed further.
Fees and limits on transfers
Standard transfers have no fee. when ready transfers cost 1.75% of the amount. There is no daily or monthly limit on how much you can transfer, but PayPal may place temporary limits on new accounts or accounts that have had unusual activity. If you hit a limit, PayPal will tell you when you try to transfer and you can contact them to ask for an increase.
Your bank may also have limits on how much money can be deposited in a single day or how many deposits you can receive in a day, though this is rare for personal accounts. If you're transferring a very large amount, it's worth calling your bank first to make sure they won't flag it as suspicious.
What to do if a transfer doesn't arrive
If you requested a standard transfer and it's been more than three business days, or an when ready transfer and it's been more than an hour, log into PayPal and check the transaction history. Look for the transfer in your "Activity" or "Transactions" section and click on it to see the status. PayPal will tell you whether it's still processing, completed, or failed.
If PayPal says it's completed but the money hasn't shown up in your bank account, contact your bank — sometimes a deposit takes longer than expected or gets held for review. If PayPal says it failed, the most common reason is that you entered the wrong account number or your bank rejected it for some reason. PayPal will usually tell you why it failed; if not, you can contact PayPal support and provide them with the transaction ID from the failed transfer.
Frequently Asked Questions
Can I transfer money from PayPal to someone else's bank account?
No. You can only transfer PayPal balance to a bank account that's linked to your own PayPal account. If you want to send money to someone else, you can use PayPal's "Send money" feature to transfer to their PayPal account or email address, but that's different from a bank transfer.
What if I don't have a bank account?
You can't transfer to a bank account if you don't have one. Some people use prepaid debit cards or online banks like Chime or Wise instead. Check whether PayPal will link to your specific card or bank — most will, but some prepaid cards don't work with PayPal transfers.
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, the money you received in PayPal in the first place may be taxable depending on where it came from — if it's income from selling items or providing services, you may owe taxes on it. Transferring it doesn't change that.
Can I reverse a transfer after I've sent it?
Once PayPal has processed a transfer, you cannot reverse it through PayPal. If the money went to the wrong account, you'll have to contact your bank to try to recover it. If the transfer failed, PayPal will return the money to your PayPal balance automatically.
Why is my transfer taking longer than expected?
Standard transfers usually take one to three business days, but delays happen if you requested it on a weekend or holiday, if your bank is slow to process deposits, or if PayPal is reviewing your account for security reasons. Check the transaction status in PayPal first, then contact your bank if PayPal says it's completed but you haven't received it.