Yes, you can transfer money from PayPal to your bank account in most cases
PayPal lets you move money out to a linked bank account, and the process is straightforward once your account is set up. You initiate the transfer through PayPal's website or app, choose which bank account to send it to, and the money arrives within a few business days. The speed and any fees depend on which transfer method you pick.
Not every PayPal account can transfer money out when ready. New accounts, accounts that have received a large payment suddenly, or accounts with unresolved disputes may have holds placed on them. If you hit a hold, PayPal will tell you when the money becomes available to transfer.
Key Takeaways
- You must link a valid bank account to your PayPal account before you can transfer money out, and PayPal will verify it with two small deposits.
- Standard transfers take three to five business days and cost nothing; when ready transfers arrive within 30 minutes but charge a fee of 1.5% of the amount.
- PayPal holds money on new accounts, accounts that received unexpected large payments, and accounts with open disputes — the hold date appears in your account.
- The bank account you transfer to must be in the same name as your PayPal account, and it must be a U.S. bank account if you are in the United States.
How to link a bank account to PayPal
Before you can transfer money out, you need to add a bank account to your PayPal account and let PayPal verify it. Go to your account settings, select "Wallet" or "Banks and Cards" (the exact name varies by app version), and choose "Link a Bank Account." Enter your routing number and account number — you can find both on a check or by logging into your bank's website.
PayPal will make two small deposits to that account within one to two business days, usually between $0.01 and $0.99 each. Once they arrive, you go back into PayPal, confirm the amounts, and the account is verified. Until you confirm those amounts, you cannot transfer money to that account. If you do not see the deposits after three business days, contact your bank — sometimes they flag small deposits as suspicious and hold them.
You can link multiple bank accounts to one PayPal account. When you transfer money, you choose which account to send it to. If you remove a bank account from PayPal, any pending transfers to that account will fail, so make sure the account is still active before you delete it.
Standard transfers versus when ready transfers
PayPal offers two ways to move money to your bank account, and they differ in speed and cost. A standard transfer takes three to five business days and costs nothing. An when ready transfer arrives within 30 minutes but charges a fee of 1.5% of the amount you are sending, with a minimum fee of $0.25.
Which one you see depends on your account history and the bank you are transferring to. Older accounts with good standing usually have both options available. Newer accounts may only see standard transfers at first. Some banks do not participate in when ready transfer, so PayPal may only offer standard even if your account is may be able to access.
If you choose when ready transfer, the fee comes out of your PayPal balance before the money leaves. So if you have $100 and transfer it when ready, your bank receives $98.50 (the $100 minus the 1.5% fee). Standard transfer sends the full amount with no deduction.
When PayPal holds your money and you cannot transfer it
PayPal places holds on money in your account in several situations, and you cannot transfer it until the hold lifts. New accounts typically have a hold for 21 days after the first payment arrives. If someone sends you a large payment out of the blue — especially if it is much larger than your usual activity — PayPal may hold it for investigation. Accounts with open disputes, chargebacks, or refund requests also have holds.
When a hold is in place, you will see it in your account under "Resolution Center" or "Holds" (depending on your app version). The screen will show you the exact date the money becomes available. You cannot speed this up by contacting PayPal support unless there is an error — the hold is automatic and based on PayPal's risk assessment.
If the hold date has passed and you still cannot transfer, check whether there is an open dispute or chargeback. If there is, the hold stays until that is resolved. If you believe the hold is a mistake, you can contact PayPal support with documentation of the transaction, but be prepared for a slow response.
What happens if the transfer fails
A transfer can fail if the bank account information is wrong, the account has been closed, or the account is not in the same name as your PayPal account. When this happens, PayPal will return the money to your PayPal balance within three to five business days and send you a notification explaining why.
The most common reason is a name mismatch. Your PayPal account name must match the name on the bank account exactly — if your PayPal says "John Smith" but your bank account says "John Michael Smith," the transfer will fail. If you need to change your PayPal name, do that before trying again. If you need to change your bank account, remove the old one from PayPal and link the correct account.
If a transfer fails repeatedly, contact your bank directly and ask whether they are blocking PayPal transfers. Some banks flag them as suspicious, especially if you have never received a transfer from PayPal before. Your bank can whitelist PayPal's sending account so future transfers go through.
Transferring money from PayPal to accounts outside the United States
If you are in the United States, you can only transfer to a U.S. bank account. PayPal does not allow transfers to international accounts from U.S. PayPal accounts. If you need to move money internationally, you have other options: you can use PayPal's money transfer service to send money to another PayPal account in another country, or you can withdraw cash at a PayPal partner location if one is near you.
If you are outside the United States, the rules vary by country. Some countries allow bank transfers; others do not. Log into your PayPal account and check the "Transfer Money" section — it will show you only the options available in your location. If bank transfer is not listed, it is not available for your account.
Frequently Asked Questions
How long does it actually take for money to show up in my bank account?
Standard transfers take three to five business days from the moment you initiate them. when ready transfers arrive within 30 minutes. Business days do not include weekends or holidays, so a transfer you start on Friday afternoon may not arrive until Tuesday. Your bank may take an additional day to post the money to your account after PayPal sends it.
Can I transfer money from PayPal if I do not have a bank account?
No. You must have a linked bank account to transfer money out of PayPal. If you do not have a bank account, you can withdraw cash at certain retailers or ATMs that partner with PayPal, but this is not available everywhere and may have fees.
What if I transfer money to the wrong bank account by mistake?
Contact PayPal support when ready and provide the transaction ID. If the transfer has not yet arrived at the bank, PayPal may be able to cancel it. If it has already arrived, you will need to contact the bank that received it and ask them to return the funds — PayPal cannot retrieve money once it has been deposited.
Do I have to pay taxes on money I transfer from PayPal to my bank account?
Transferring money to your bank account is not a taxable event by itself — you are just moving money you already have. However, the original source of that money may be taxable. If you received it as income or payment for services, it is subject to income tax. PayPal reports payments over $20,000 to the IRS, and you may receive a 1099-K form at tax time.
Can I set up automatic transfers from PayPal to my bank account?
PayPal does not offer automatic recurring transfers. You must initiate each transfer manually through the app or website. However, you can set up a transfer as soon as money arrives in your account, so the process is quick if you do it regularly.