The basic process: three steps and a waiting period
To move money from PayPal to your bank account, you link your bank details to PayPal, then initiate a transfer from your PayPal balance. PayPal sends the money to your bank through the automated clearing house (ACH) network, which takes one to three business days. You do not need to pay a fee for standard transfers, though PayPal offers a faster option that costs a percentage of the amount.
The speed and cost depend on which transfer method you choose. A standard transfer is free but slower. An when ready transfer costs between 1% and 2% of the amount you send, depending on your account history and the payment method you use. Most people use the standard option unless they need the money the same day.
Key Takeaways
- Standard transfers from PayPal to your bank account are free and take one to three business days through the ACH network.
- You must link your bank account to PayPal first by providing your routing number and account number, which PayPal verifies with two small test deposits.
- when ready transfers cost 1% to 2% of the amount and arrive within 30 minutes, but are only available if your account is in good standing.
- PayPal holds transfers for up to 21 days if your account shows unusual activity or if you have not verified your identity.
- If a transfer fails, PayPal returns the money to your PayPal balance within three to five business days, and you can try again with corrected information.
How to link your bank account to PayPal
Before you can transfer money out, PayPal needs to confirm you own the bank account. Go to your PayPal account settings, find the "Wallet" or "Banks and Cards" section (the exact name varies by device and region), and select "Link a Bank Account." Enter your bank's routing number and your account number. You can find both on a check, or by logging into your bank's website.
PayPal then deposits two small amounts—usually between $0.01 and $0.99 each—into your account over one to two business days. Once those deposits appear in your bank statement, return to PayPal and enter the exact amounts to confirm the account is yours. After confirmation, the account is linked and ready to use.
If you have already linked the account before, you can skip this step. PayPal keeps the link active unless you remove it yourself or your bank closes the account.
Starting a standard transfer
Open PayPal and go to your wallet or balance page. Look for a button labeled "Transfer Money" or "Withdraw." Select "Transfer to Your Bank" and choose the linked account you want to send money to. If you have only one account linked, PayPal selects it automatically.
Enter the amount you want to send. PayPal shows you the fee (usually zero for standard transfers) and the expected arrival date. Confirm the transfer. The money leaves your PayPal balance when ready, but your bank does not receive it for one to three business days. You will see the transfer listed in your PayPal transaction history right away, marked as pending.
Once the transfer arrives at your bank, it appears in your bank account and is yours to use. Your bank may hold it for an additional day depending on their own policies, though this is rare for ACH transfers from PayPal.
When to use when ready transfer instead
If you need the money today or tomorrow, PayPal offers when ready transfer for a cost. The fee is 1% of the amount for most users, though it can reach 2% if your account is newer or has limited history. The money arrives within 30 minutes on business days, or within a few hours on weekends.
when ready transfer is only available if your account is in good standing—meaning no recent disputes, chargebacks, or policy violations. If PayPal has flagged your account for review, you cannot use when ready transfer until the review is complete. You also cannot use when ready transfer if you funded your PayPal balance with a credit card or debit card; the money must come from a previous sale, a transfer someone sent you, or a direct deposit.
To use when ready transfer, follow the same steps as a standard transfer, but select "when ready Transfer" instead of the standard option. PayPal shows the fee before you confirm, so you know the exact cost.
Why PayPal might hold or delay your transfer
PayPal can hold a transfer for up to 21 days if the system flags your account for review. This happens most often when you transfer a large amount for the first time, when your account is new, or when PayPal detects activity that looks unusual compared to your normal pattern. A hold is not a denial—the money will reach your bank once the review is complete, usually within a few days.
If PayPal asks you to verify your identity during a hold, you can speed the process by providing the information they request. This usually means uploading a photo of your ID or answering security questions. Once verified, the hold is lifted and your transfer continues.
Your bank can also delay the transfer on their end, though this is less common. Some banks flag ACH transfers from payment platforms for extra review, especially if the amount is large or the account is new. Contact your bank if a transfer has been pending for more than three business days.
What to do if a transfer fails
A transfer fails most often because the bank account information is wrong—a mistyped routing number, a closed account, or an account that does not match the name on your PayPal account. PayPal returns the money to your PayPal balance within three to five business days. You will see a notification in your PayPal account explaining why it failed.
To try again, double-check the routing number and account number against a recent bank statement or your bank's website. If the account is closed, link a different account. If the name does not match, contact your bank to confirm the account is in your name, or contact PayPal to update the name on your account.
Some banks reject transfers from PayPal if they do not recognize the sender. If this happens repeatedly, call your bank and ask them to whitelist PayPal's ACH originator ID (PayPal's is 1121000248). This tells your bank to accept transfers from PayPal without extra review.
Frequently Asked Questions
How long does it really take for money to show up in my bank account?
Standard transfers take one to three business days from the moment you initiate them. Weekends and bank holidays do not count as business days, so a transfer you start on Friday may not arrive until Tuesday. when ready transfers arrive within 30 minutes on business days, or within a few hours on weekends and holidays.
Can I transfer money if my PayPal balance is zero?
No. You can only transfer money that is actually in your PayPal balance. If you have a PayPal credit line or a PayPal loan, those are separate from your balance and cannot be transferred to your bank. If you need to move money from a sale or a payment someone sent you, wait for it to clear into your balance first.
What happens if I cancel a transfer after I start it?
If you cancel before the transfer leaves PayPal's system (usually within a few minutes), the money stays in your PayPal balance and you lose nothing. If the transfer has already been sent to your bank, you cannot cancel it through PayPal. Contact your bank instead and ask them to reverse the incoming ACH transfer, though banks cannot always do this if the transfer has already posted.
Do I have to pay taxes on money I transfer to my bank?
Transferring your own money from PayPal to your bank is not a taxable event. However, the money itself may be taxable depending on where it came from. If it is income from sales or services, you owe income tax on it. If it is a refund or a personal transfer from someone else, it is usually not taxable. Keep records of where the money came from so you can report it correctly to the IRS.
Can I transfer to someone else's bank account?
No. PayPal only allows you to transfer money to a bank account that is linked to your own PayPal account and registered in your name. To send money to someone else, use PayPal's "Send Money" feature instead, which lets you transfer directly to their PayPal account or, in some cases, to their bank account if they have set that up in their PayPal profile.