The basic steps to transfer PayPal funds to your bank
You can move money from PayPal to a linked bank account in three to five business days using PayPal's standard transfer feature. The process takes about two minutes: log into PayPal, go to your Wallet, select your bank account, enter the amount, and confirm. PayPal does not charge a fee for standard transfers to US bank accounts, though some banks may charge you on their end.
The speed and cost depend on which transfer method you choose. A standard transfer is free but slower. An when ready transfer costs between 25 cents and $2 depending on the amount, but the money lands in your account within 30 minutes. A PayPal debit card withdrawal is when ready and free if you have one, but requires you to own the card.
Before you can transfer anything, you must link a bank account to your PayPal account and verify it. PayPal will send two small deposits (usually under $1 each) to your bank account, and you confirm the amounts in PayPal to prove you own the account. This verification step takes one to two business days.
Key Takeaways
- Standard transfers to a linked bank account are free and take three to five business days; when ready transfers cost 25 cents to $2 and arrive within 30 minutes.
- You must link and verify your bank account before any transfer can happen, which requires confirming two small test deposits PayPal sends to your bank.
- If you have a PayPal debit card, you can withdraw cash at ATMs for free and when ready, with no transfer step needed.
- Transfers fail most often because the bank account is not verified, the account is closed, or the routing number does not match your bank's records.
How to link and verify your bank account
Go to your PayPal account settings and select "Linked banks and cards." Click "Link a bank account" and enter your routing number, account number, and account type (checking or savings). You can find your routing number on a check, on your bank's website, or by calling your bank's customer service line.
PayPal will then send two deposits to your bank account within one to two business days. The amounts are random and usually between 1 cent and 99 cents. Once they arrive, go back to PayPal, select the bank account, and enter both amounts exactly as they appear. PayPal confirms the account is yours and unlocks transfers.
If you enter the wrong routing number or account number, the deposits will go to the wrong bank and verification will fail. If this happens, delete the account from PayPal and start over with the correct information. Do not try to verify a second time with the same wrong details.
Standard transfer vs. when ready transfer: timing and cost
A standard transfer is free and takes three to five business days. PayPal processes it the same day you request it, but your bank takes several days to receive and post the funds. Weekends and bank holidays add extra time. Use this method if you do not need the money urgently and want to avoid fees.
An when ready transfer costs between 25 cents and $2 depending on the amount you send. The money arrives in your bank account within 30 minutes on any day, including weekends. PayPal charges the fee and deducts it from your PayPal balance before the transfer happens. If your PayPal balance is too low to cover both the transfer and the fee, the transfer will not go through.
PayPal also offers a PayPal debit card that lets you withdraw money at any ATM for free and when ready. There is no transfer step—you straightforward use the card like any other debit card. If you do not have the card but want when ready access to your money, when ready transfer is your only option.
Why transfers fail and how to fix them
The most common reason a transfer fails is that your bank account is not verified. PayPal will show an error message saying the account needs verification. Go back to your account settings, find the bank account, and check whether the two test deposits have arrived at your bank. If they have, enter the amounts to complete verification. If they have not arrived after two business days, contact your bank to confirm the routing and account numbers are correct.
A transfer can also fail if your bank account is closed, if the routing number does not match your bank's records, or if you have reached PayPal's transfer limit for the day or month. PayPal's daily limit is usually $20,000 for standard transfers and $5,000 for when ready transfers, though limits vary by account age and history. If you hit the limit, you must wait until the next day or month to transfer more.
If a transfer fails, PayPal will return the money to your PayPal balance within one to three business days. You can then try again with a different bank account or method. If the same account keeps failing, contact your bank to ask whether they are blocking PayPal transfers or whether there is a problem with your account number or routing number on file.
What happens if you transfer more than you have
PayPal will not let you transfer more money than you have in your account. If you try, the transfer will be rejected and you will see an error message. You can only transfer up to your current PayPal balance.
If you have a PayPal Credit line or PayPal balance from a recent sale, those are separate from your main PayPal balance and cannot be transferred to your bank. Only money in your PayPal Cash or Cash Plus account can be transferred. If you are unsure how much you have available to transfer, check your Wallet page—it shows your total balance and any holds or pending transfers.
Transfers from PayPal Credit and business accounts
If your money is in a PayPal Credit account (a line of credit, not a cash balance), you cannot transfer it to your bank. PayPal Credit is a loan product, not a stored balance. You can only use it to make purchases. If you want to move money to your bank, you must have a PayPal Cash or Cash Plus account.
If you have a PayPal Business account, the transfer process is the same as a personal account. Log into your business account, go to your Wallet, and follow the standard transfer steps. Business accounts have the same fee structure and timing as personal accounts, though some business accounts have higher daily or monthly transfer limits.
If you have a PayPal Merchant account (used to receive payments from customers), transfers work the same way. Money from customer payments sits in your merchant balance and can be transferred to your linked bank account using the same standard or when ready transfer methods.
Frequently Asked Questions
How long does it really take for money to show up in my bank account?
Standard transfers take three to five business days from the time you request them. when ready transfers take 30 minutes. Business days do not include weekends or federal holidays, so a transfer requested on Friday may not arrive until Wednesday. Your bank may also take an extra day to post the funds once PayPal sends them.
Can I transfer to someone else's bank account?
No. PayPal only transfers money to a bank account that is linked to your own PayPal account. You cannot transfer directly to another person's bank account. If you want to send money to someone else, use PayPal's "Send money" feature to send it to their email address or phone number, and they can then transfer it to their own bank account.
What if my bank rejects the transfer?
If your bank rejects a transfer, PayPal will return the money to your PayPal balance within one to three business days. This usually happens because the account is closed, the routing number is wrong, or your bank has flagged the transfer as suspicious. Contact your bank to ask why the transfer was rejected, then try again with corrected information or a different account.
Is there a limit to how much I can transfer?
PayPal's daily limit for standard transfers is usually $20,000 and for when ready transfers is usually $5,000, though limits vary by account age and history. You also cannot transfer more than your current PayPal balance. If you need to transfer more than the daily limit, you can make multiple transfers on different days.
Do I have to pay taxes on money I transfer from PayPal to my bank?
Transferring your own money from PayPal to your bank is not a taxable event. However, if the money in your PayPal account came from selling goods or services, that income is taxable. PayPal reports payments over $600 to the IRS, so keep records of what the money was for.