PayPal transfers to your bank take one to three business days, and the process depends on whether you have a PayPal Cash or PayPal Cash Plus account
To send money from PayPal to your bank, you log into PayPal, go to your Wallet, select your bank account, and choose how much to transfer. PayPal then moves that money on a schedule: standard transfers (which are free) take one to three business days, while when ready transfers (which cost a small fee, usually between 25 cents and $2) arrive within minutes. The speed and cost depend on your account type and which transfer method you choose.
The catch is that not all PayPal accounts can transfer to a bank. You need either a PayPal Cash account or a PayPal Cash Plus account to move money out. If you have a basic PayPal account used only to pay for things, you cannot transfer to a bank—you can only spend the balance or send it to another PayPal user. Upgrading to Cash or Cash Plus is free and takes a few minutes.
Key Takeaways
- Standard transfers from PayPal to your bank are free and take one to three business days; when ready transfers cost 25 cents to $2 and arrive within minutes.
- You must have a PayPal Cash or PayPal Cash Plus account to transfer to a bank; basic PayPal accounts cannot transfer out.
- Your bank account must be verified in PayPal before you can transfer money to it, which involves confirming two small deposits PayPal sends to your bank.
- Transfers are limited by daily and monthly caps that vary by account age and verification status; new accounts have lower limits.
- Money leaves your PayPal balance when ready when you request a transfer, even if it takes days to arrive at your bank.
Upgrading to a PayPal Cash account
If you have a standard PayPal account, you need to upgrade to access bank transfers. Go to your PayPal settings, select Account Type, and choose either Cash or Cash Plus. The upgrade is when ready and costs nothing. The difference between them is that Cash Plus includes a debit card and monthly fee (currently $4.50 per month), while Cash does not. For most people who just want to transfer money out, the free Cash account is enough.
Once you upgrade, PayPal may ask you to confirm your identity by uploading a photo of your ID or answering security questions. This step can take a few minutes or a few hours depending on how busy PayPal's verification system is. You do not need to wait for this to finish before adding your bank account—you can do both at the same time.
Adding and verifying your bank account
Before you can transfer money, PayPal needs to confirm that the bank account is actually yours. Go to your Wallet, select 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 then sends two small deposits (usually between 1 and 2 cents each) to your bank account. This takes one to two business days. Once they arrive, you log back into PayPal, go to your bank account settings, and enter the exact amounts of those two deposits. PayPal confirms the match, and your account is verified. After that, you can transfer money whenever you want.
If you do not see the deposits after three business days, check that you entered your routing and account numbers correctly. If they are wrong, delete the account from PayPal and add it again. You do not need to wait for the original deposits—PayPal will send new ones to the corrected account.
Choosing between standard and when ready transfers
Standard transfers are free and take one to three business days. The exact timing depends on your bank and when you request the transfer. If you transfer on a Friday evening, the money might not arrive until Tuesday because banks do not process transfers over weekends. PayPal shows you the expected arrival date before you confirm.
when ready transfers cost money—usually 25 cents to $2 depending on the amount—but the money arrives in minutes. The fee is deducted from your PayPal balance before the transfer happens. when ready transfers work any day and any time, including weekends and holidays. If you need the money urgently, when ready is worth the cost. If you can wait a few days, standard saves you money.
Transfer limits and how they work
PayPal sets limits on how much you can transfer per day and per month. New accounts have lower limits—often $500 per day and $5,000 per month—but these increase as your account ages and you build a history of transfers. Verified accounts (ones where you have confirmed your identity and bank account) have higher limits than unverified ones. PayPal does not publish exact limits, but you can see yours in your account settings under Limits.
If you hit your daily limit, you can transfer again the next day. If you hit your monthly limit, you have to wait until the next calendar month. The month resets on the first of each month, not 30 days from your last transfer. If you regularly transfer large amounts, you can contact PayPal to request a higher limit, though they do not always grant it.
What happens if the transfer fails
Most transfers go through without problems, but occasionally one fails. Common reasons include a closed or frozen bank account, a mismatch between the name on your PayPal account and the name on your bank account, or a bank that does not accept transfers from PayPal. When a transfer fails, the money goes back to your PayPal balance within one to three business days. PayPal sends you an email explaining why.
If your bank account name does not match your PayPal name exactly, fix it before trying again. Go to your PayPal account settings, update your legal name to match your bank records, and try the transfer once more. If the problem is on your bank's side—for example, your bank blocks transfers from PayPal—you will need to contact your bank to allow it or use a different bank account.
Transfers from PayPal Credit and merchant balances
If you have a PayPal Credit line (a line of credit PayPal offers), you cannot transfer that balance to your bank. PayPal Credit is for spending only. However, if you have money in your main PayPal balance from selling items or receiving payments, you can transfer that out.
If you are a merchant and have received payments from customers, those go into your merchant balance. You can transfer merchant balance to your bank the same way you transfer personal balance—through your Wallet. The process is identical, and the same limits explore.
Frequently Asked Questions
Can I transfer money from PayPal to someone else's bank account?
No. PayPal transfers only go to a bank account registered in your own name. If you want to send money to someone else, you can send it to their PayPal account (if they have one) or use a different service like Venmo or a wire transfer through your bank.
Why is my transfer taking longer than three days?
Weekends and bank holidays pause the clock. A transfer requested on Friday might not arrive until Wednesday because banks do not process transfers on Saturday, Sunday, or holidays. If more than three business days have passed, check your email for a failure notice or log into PayPal to see the transfer status.
Do I pay taxes on money I transfer from PayPal to my bank?
Transferring your own money is not a taxable event. However, if the money in your PayPal account came from selling items or providing services, that income is taxable. The transfer itself does not create a tax bill—the income does, regardless of whether it stays in PayPal or moves to your bank.
What if I transfer money by mistake to the wrong bank account?
Once a transfer leaves PayPal, you cannot cancel it or redirect it. If you sent it to the wrong account, contact your bank when ready and ask them to reverse it or identify the account holder so you can request the money back. PayPal cannot retrieve money that has already been transferred out.
Can I set up automatic transfers from PayPal to my bank?
PayPal does not offer automatic recurring transfers. You have to request each transfer manually. However, you can set up a reminder on your phone or calendar to transfer money on a regular schedule if that helps you stay organized.