PayPal needs your bank details to move money in and out

To add a bank account to PayPal, you log into your account, go to Wallet, select Link a Bank Account, and enter your routing number and account number. PayPal then sends two small deposits (usually $0.01 and $0.02) to that account within one to two business days. You return to PayPal, confirm those amounts, and the account is verified. The whole process takes three to five business days from start to finish.

You need this connection if you want to fund transfers to other people, pay bills through PayPal, or withdraw money from your PayPal balance back to your checking account. Without a linked bank account, you can only spend what's already sitting in your PayPal balance — which means you'd have to load money in some other way first.

Key Takeaways

  • PayPal sends two tiny test deposits to your bank account to confirm you own it; you must log back in and verify the amounts to complete the link.
  • The verification process takes three to five business days because banks process deposits on their own schedule, not when ready.
  • You can link multiple bank accounts to one PayPal account, but each one must be verified separately.
  • If you don't see the test deposits after five business days, check that you entered your routing and account numbers correctly, or contact your bank to confirm the deposits arrived.

What information PayPal asks for

When you start linking a bank account, PayPal asks for your routing number and your account number. Your routing number is a nine-digit code that identifies your specific bank or credit union; your account number is the unique identifier for your checking or savings account at that bank. Both appear on the bottom left of any check you write, or you can find them by logging into your bank's website or calling the bank directly.

PayPal also asks you to confirm the account type (checking or savings) and the account holder's name. The name must match the name on your PayPal account. If your PayPal account is under a different name than your bank account — for example, if you use a nickname on PayPal but your legal name at the bank — the verification will fail and you'll need to update one of them first.

The two-deposit verification step

After you enter your bank details, PayPal initiates two small deposits: typically $0.01 and $0.02, though the exact amounts vary. These deposits appear in your bank account within one to two business days. Your bank processes them like any other deposit, so they show up in your online banking or on your statement.

Once you see both deposits in your bank account, you return to PayPal, go back to your Wallet settings, and select the option to confirm the deposits. PayPal asks you to enter the two amounts you received. If you enter them correctly, the account is verified when ready and you can begin using it to send money, receive transfers, or withdraw your PayPal balance.

If the deposits don't arrive within five business days, double-check that you entered your routing and account numbers correctly. If they're correct, contact your bank — occasionally a deposit gets held or rejected on the bank's side, and the bank can tell you what happened.

Linking multiple bank accounts

You can add more than one bank account to your PayPal account. This is useful if you have accounts at different banks, or if you want to keep business and personal accounts separate. Each account must go through the same verification process: you enter the details, PayPal sends the two test deposits, you confirm the amounts, and the account is live.

When you transfer money out of PayPal or fund a transfer to someone else, you choose which linked bank account to use. PayPal remembers your choice, but you can change it any time before you confirm the transaction.

What happens after verification

Once your bank account is verified, you can use it to fund payments and transfers. If you send money to another person through PayPal and don't have a balance in your PayPal account, PayPal pulls the money directly from your linked bank account. The transfer to the other person usually completes within one to three business days, depending on whether they're receiving it as a PayPal balance transfer or a bank deposit.

You can also withdraw your PayPal balance back to your linked bank account. This is called an when ready transfer if you pay a small fee (usually $0.25), or a standard transfer if you wait one to three business days at no cost. The money lands in whichever bank account you select at the time of withdrawal.

Removing or updating a linked account

If you want to stop using a bank account with PayPal, go to your Wallet, find the account in your list, and select Remove or Unlink. You can do this at any time. The account is disconnected when ready, though any transfers already in progress will still complete.

If your bank account information changes — for example, you closed that account and opened a new one at the same bank — you need to remove the old account and add the new one. You cannot edit an existing linked account; you must delete it and create a new link. The new account will need to go through the two-deposit verification again.

Troubleshooting common problems

If PayPal rejects your bank details when you try to add the account, the most common reason is a mismatch between the name on your PayPal account and the name on your bank account. Log into PayPal, check the name on your account (usually under Account Settings or Profile), and make sure it matches exactly what your bank has on file. If it doesn't, update your PayPal name first, then try adding the bank account again.

If you've entered your details correctly but the two test deposits never arrive, contact your bank's customer service. Ask them to check whether PayPal's deposits came through. Some banks flag small deposits as suspicious and hold them; others may have rejected them because the account number didn't match their records. Your bank can tell you which happened and what to do next. Once you know the deposits arrived, return to PayPal and confirm the amounts.

If you see only one deposit instead of two, wait another business day or two — they sometimes arrive separately. If a full five business days have passed and you still see only one, contact PayPal's support team with the amount you received, and they can help you complete the verification with that information.

Frequently Asked Questions

Can I use a savings account instead of a checking account?

Yes. PayPal accepts both checking and savings accounts. When you add the account, you tell PayPal which type it is. The verification process is identical for both.

Do I have to verify my bank account if I only want to receive money?

No. You can receive transfers and payments to your PayPal balance without a linked bank account. You only need to link an account if you want to send money out of PayPal or withdraw your balance to a bank.

What if I don't recognize the two deposits PayPal sent?

Those are the verification deposits from PayPal. They're real money — small amounts, usually $0.01 and $0.02 — sent to confirm you own the account. Once you confirm the amounts in PayPal, the verification is complete and you can use the account.

How long does it take to use my bank account after I verify it?

when ready. As soon as you confirm the two deposit amounts in PayPal, the account is active. You can send money, receive transfers, or withdraw your balance right away. The receiving bank may take one to three business days to process the actual transaction, but PayPal's side is when ready.

Can someone else's bank account be linked to my PayPal account?

No. The bank account holder's name must match the name on your PayPal account. PayPal verifies this during the two-deposit step. If the names don't match, the verification fails.