What happens when you link your bank account
When you link a bank account to PayPal, you're giving PayPal permission to pull money directly from your checking or savings account. PayPal uses this connection in two ways: to fund payments you send through PayPal, and to receive money when someone sends you funds. The link itself is not automatic—you have to authorize it through your bank, and you can remove it at any time.
The process takes about five to ten minutes to set up, but PayPal may hold your account in a limited state for a day or two while they verify the connection is real. During that time, you can still receive money, but you may not be able to send payments or withdraw funds until verification is complete.
Key Takeaways
- You link your bank account through PayPal's settings by entering your routing number and account number, or by letting PayPal log into your bank directly.
- PayPal will make two small test deposits to your account within one to two business days, and you must confirm the amounts to finish verification.
- Once linked, your bank account becomes the default source when you send money or pay for something through PayPal.
- You can unlink your account at any time from PayPal settings, and doing so does not affect money you have already sent or received.
The two ways to link your account
PayPal offers two paths. The first is manual entry: you log into PayPal, go to Wallet or Settings, select "Link a Bank Account," and type in your routing number and account number. Your bank's routing number is a nine-digit code that identifies your specific branch; your account number is on the bottom left of your checks or visible in your online banking portal.
The second path is direct login. PayPal will ask permission to log into your bank account directly using your online banking username and password. PayPal does not store this password—it uses it once to confirm the account exists and is in your name, then discards it. This method is faster because PayPal can verify the account when ready instead of waiting for test deposits.
Which method you see depends on your bank. Larger banks like Chase, Bank of America, and Wells Fargo support direct login. Smaller regional banks and credit unions may only offer manual entry. If you are unsure, start with direct login; PayPal will tell you if your bank is not available and offer manual entry as the alternative.
What happens after you enter your information
If you used manual entry, PayPal will send two small deposits—usually between $0.01 and $0.99 each—to your bank account within one to two business days. You then log back into PayPal and confirm the exact amounts of both deposits. This confirms that you own the account and can receive money there. Once you confirm, the account is fully linked.
If you used direct login, PayPal verifies the account when ready and you skip the deposit step. Your account is ready to use right away, though PayPal may still place a temporary limit on how much you can send or withdraw for the first 24 hours.
During the verification period, your account may show a "limited" status. You can still receive payments from others, but you cannot send money or withdraw your balance. This usually clears within one business day, sometimes longer if PayPal flags something as unusual.
Using your linked bank account to send and receive money
Once your account is fully linked, your bank account becomes the default funding source. When you send money to another PayPal user or pay for something online, PayPal will pull the funds from your bank account unless you have a PayPal balance or another payment method on file.
When someone sends you money through PayPal, it lands in your PayPal account first, not your bank account. From there, you can leave it in PayPal to spend later, or you can transfer it to your linked bank account. Transfers to your bank account take one to three business days, depending on your bank.
PayPal charges no fee to link your account or to transfer money from PayPal to your bank. However, if you send money to another person (not a business), PayPal charges a fee if you choose to cover the cost for the recipient. Sending to a business or paying for goods and services has different fee structures depending on whether you are a buyer or seller.
Removing or changing your linked account
You can unlink your bank account from PayPal at any time through Settings > Wallet > Bank Accounts. Click the account you want to remove and select "Unlink." PayPal will ask you to confirm. Unlinking does not affect money you have already sent or received—those transactions stay in your history.
If you want to link a different bank account, you do not have to remove the old one first. You can have multiple bank accounts linked to the same PayPal account. This is useful if you have a checking account for everyday spending and a savings account for transfers. You can choose which account to use each time you send money.
If your bank account information changes—for example, you close the account and open a new one at the same bank—you will need to unlink the old account and link the new one. PayPal will not automatically update the account number.
What to do if verification fails or takes too long
If you entered your routing and account number manually and the test deposits do not arrive after three business days, check that you entered both numbers correctly. Log into your bank's online portal and confirm the routing number matches what you entered in PayPal. If it does, contact your bank's customer service—some banks delay or block small deposits from third parties as a security measure.
If you used direct login and PayPal could not connect, your bank may not support that method, or your online banking login may be incorrect. Try the manual entry method instead. If manual entry also fails, contact PayPal's support team with your bank name and account type; they can sometimes process the link manually.
If your account is stuck in limited status after 48 hours, check your email for messages from PayPal asking for additional information. Sometimes PayPal needs you to confirm your identity or provide a photo of your ID. Responding to these requests usually clears the limit within a few hours.
Security and what PayPal can and cannot do
PayPal cannot withdraw money from your account without your permission for each transaction. When you send money, you authorize that specific payment. When you set up automatic payments or subscriptions, you authorize those in advance, but you can cancel them at any time.
Your bank account information is encrypted and stored on PayPal's servers. PayPal does not share your routing number or account number with the people you send money to—they only see that the payment came from PayPal. If you are worried about security, you can unlink your account and use a credit card instead, though credit cards carry their own fees.
If someone gains access to your PayPal account, they can send money from your linked bank account. This is why using a strong, unique password for PayPal is important. Enable two-factor authentication in PayPal settings to add an extra layer of protection.
Frequently Asked Questions
How long does it take for my bank account to be fully linked?
If you use direct login, it is when ready. If you use manual entry, it takes one to two business days for the test deposits to arrive, then a few minutes for you to confirm them. Your account may show as limited for up to 24 hours after that, but you can usually send and receive money within a few hours.
Can I link a savings account instead of a checking account?
Yes. PayPal works with both checking and savings accounts. Transfers from PayPal to a savings account take the same one to three business days as transfers to checking. Some banks charge a fee if you make more than six transfers per month from a savings account, so check your bank's rules.
What if I do not have online banking set up at my bank?
You can still use manual entry. You will need your routing number (call your bank or find it on a check) and your account number (also on a check or your bank statement). The test deposits will still arrive and you will confirm them the same way.
Can I link the same bank account to multiple PayPal accounts?
No. Each bank account can be linked to only one PayPal account. If you try to link it to a second account, PayPal will reject it. You would need to use a different bank account for a second PayPal account.
What happens to my linked account if I close my PayPal account?
The link is automatically removed when you close PayPal. Your bank account is not affected—it remains open and active. If you reopen a PayPal account later, you will need to link your bank account again.