Yes, you can transfer money from PayPal to a bank account linked to your PayPal account
PayPal holds money in a digital wallet, but that money can move to a checking or savings account you own. The transfer is not when ready — it takes one to three business days for the money to land in your bank, depending on your bank and the time of week you initiate the transfer. PayPal does not charge a fee for standard transfers to a U.S. bank account, though it does offer a faster option that costs money.
The process requires that your bank account already be connected to your PayPal account and verified. If you have not done that yet, you will need to add and confirm your bank details before you can move money out. Once that is set up, the actual transfer takes about two minutes.
Key Takeaways
- Standard transfers from PayPal to a linked bank account take one to three business days and cost nothing.
- Your bank account must be added to your PayPal account and verified before you can transfer money to it.
- PayPal offers an when ready transfer option called PayPal when ready Transfer, which costs 1.75 percent of the amount you move.
- Transfers initiated on weekends or holidays will not begin processing until the next business day.
- The money leaves your PayPal balance when ready when you request the transfer, even though it takes days to reach your bank.
How to link and verify your bank account
Open PayPal on a web browser or the mobile app and go to your Wallet. Select "Link a bank account" or "Add a bank account" — the exact wording depends on whether you already have one linked. Enter your bank's routing number, your account number, and the account type (checking or savings). PayPal will then send two small deposits to that account, usually within one to two business days.
Once those deposits arrive in your bank account, you return to PayPal and confirm the two amounts. This verification step proves you own the account. After that, the account is active and you can transfer money to it. If you do not verify within 30 days, PayPal will remove the account and you will have to start over.
If you already have a bank account linked to PayPal but it is not verified, you can find it in your Wallet under "Linked accounts" and complete the verification process the same way — PayPal will send the two test deposits again.
The standard transfer process and timeline
Once your bank account is verified, go to your PayPal Wallet and select "Transfer money." Choose "Transfer to your bank" and enter the amount you want to move. PayPal will show you the bank account the money will go to and ask you to confirm. After you confirm, the money leaves your PayPal balance right away, but it does not arrive at your bank for one to three business days.
The timing depends on when you initiate the transfer and your specific bank's processing speed. A transfer started on a Tuesday morning might arrive Wednesday or Thursday. A transfer started on Friday afternoon will not begin processing until Monday, so it may not arrive until Tuesday or Wednesday. Weekends and federal holidays do not count as business days.
You can check the status of a transfer in your PayPal transaction history. PayPal will show you the date it was initiated and an estimated arrival date. If a transfer does not arrive within the stated window, contact your bank first — sometimes the delay is on their end — and then PayPal if your bank says they have not received it.
PayPal when ready Transfer and when it makes sense
PayPal offers a faster option called PayPal when ready Transfer, which moves money to your bank account in minutes rather than days. The cost is 1.75 percent of the amount transferred. For example, transferring $100 when ready costs $1.75, so you receive $98.25 in your bank account.
when ready Transfer is available only to certain PayPal account holders and only to specific banks. PayPal's website lists which banks support it. If your bank is not on the list, the option will not appear when you try to transfer. Even if your bank is listed, you may not see the option if your account is new or has limited history.
when ready Transfer makes sense if you need the money urgently and the 1.75 percent fee is worth the speed to you. For routine transfers where you can wait a few days, the standard free transfer is the better choice.
What happens if your bank account is not verified
If you try to transfer money to a bank account that has not been verified, PayPal will not let you complete the transfer. You will see a message asking you to verify the account first. At that point, you have two options: complete the verification process by confirming the two test deposits PayPal sends, or choose a different bank account that is already verified.
Verification usually takes one to two business days from the time PayPal sends the deposits. If you are in a hurry, you cannot skip this step — PayPal requires it for security reasons. If you have another bank account already linked and verified, you can transfer to that one instead while you wait for the new account to verify.
Limits on how much you can transfer
PayPal sets limits on how much money you can transfer to your bank account in a single transaction and over time. The limits vary based on your account history, how long you have used PayPal, and whether you have had disputes or chargebacks. New accounts typically have lower limits than established ones.
You can see your transfer limit by going to your Wallet and attempting to transfer money — PayPal will show you the maximum amount available. If you need to transfer more than your limit allows, you can split it into multiple transfers over several days, or you can contact PayPal to request a limit increase. PayPal reviews limit increase requests based on your account activity and history.
Transfers from PayPal Credit or PayPal Working Capital
If your PayPal balance comes from PayPal Credit (a line of credit PayPal offers), you cannot transfer that money to your bank account. PayPal Credit is a loan product, not a stored balance. You can only use it to make purchases or send money to other people. The same applies to PayPal Working Capital, which is a business loan. Money from these products cannot be moved to your bank.
If you have both a regular PayPal balance and a PayPal Credit balance, you can transfer only the regular balance. When you initiate a transfer, PayPal draws from your available balance first, which is the money you have received or loaded into PayPal yourself.
Frequently Asked Questions
Why is my transfer taking longer than three business days?
Contact your bank first — delays sometimes happen on their end, especially if the transfer arrived after their daily processing cutoff. If your bank confirms they have not received it, log into PayPal and check the transaction status. If PayPal shows the transfer as completed but your bank has not received it, contact PayPal support with your transaction ID and bank details.
Can I transfer money from PayPal to someone else's bank account?
No. Transfers from PayPal go only to a bank account registered in your own name. To send money to someone else, use PayPal's "Send money" feature to transfer it to their PayPal account or email address. They can then transfer it to their own bank account if they choose.
What if I enter the wrong bank account number?
If you catch the error before confirming, cancel and start over. If you have already confirmed the transfer, contact PayPal when ready with your transaction ID. PayPal may be able to stop the transfer if it has not processed yet. If the money has already left PayPal, you will need to contact your bank to report the error and request a reversal.
Do I pay taxes on money I transfer from PayPal to my bank?
Transferring money to your bank does not create a tax event by itself — you pay taxes on the income when you receive it in PayPal, not when you move it to your bank. However, if PayPal reports the income to the IRS, you are responsible for reporting it on your tax return. Keep records of all PayPal transactions for tax purposes.
Can I set up automatic transfers from PayPal to my bank?
PayPal does not offer automatic recurring transfers. You must initiate each transfer manually through your Wallet. If you receive regular PayPal payments and want to move them to your bank regularly, you will need to set a reminder to transfer the money yourself on a schedule that works for you.