How to transfer PayPal money to your bank account
PayPal holds your money in a digital wallet until you move it somewhere else. To get that money into your actual bank account, you go to PayPal's transfer tool, choose your bank, and tell PayPal how much to send. The money usually arrives within one to three business days, though it can take longer depending on your bank.
The process is straightforward once you have connected your bank account to PayPal. You do not need special permission or approval — if your account is in good standing, you can transfer whenever you want. The only cost is that PayPal may take a small percentage if you choose their fastest transfer option, though the standard transfer is free.
Key Takeaways
- You must link your bank account to PayPal first by providing your routing number and account number, which you can find on a check or in your bank's app.
- Standard transfers to a linked bank account are free and take one to three business days.
- PayPal's when ready transfer option costs between 1 and 2 percent of the amount you send, but the money reaches your bank within 30 minutes.
- Once your bank account is linked, you can transfer money as often as you want with no limit on how many times per day or week.
Linking your bank account to PayPal for the first time
Before you can transfer money out, PayPal needs to know which bank account to send it to. Open PayPal on your computer or phone, go to your account settings, and look for a section called "Wallet" or "Banks and Cards." Click the option to add a bank account.
PayPal will ask for your bank's routing number and your account number. Your routing number is a nine-digit code that identifies your specific bank. Your account number is unique to you. Both appear on the bottom left of any check you have from that account, or you can find them in your bank's mobile app under account details. Enter both numbers and confirm your bank's name when PayPal shows it to you.
Some banks let PayPal verify your account when ready by checking a small deposit. Others require you to wait a few days while PayPal makes two tiny deposits (usually under a dollar each) to your account, then you confirm the amounts to prove you own the account. Once verified, your bank account stays linked and you will not have to do this again.
Doing a standard free transfer
Once your bank account is linked, transferring money is straightforward. On the PayPal home page or app, look for a button or menu option that says "Transfer Money" or "Send Money to Your Bank." Click it and choose the bank account you want to send to (if you have linked more than one).
Enter the amount you want to transfer. PayPal will show you the fee (usually zero for standard transfers) and the date the money should arrive. The standard arrival window is one to three business days, though some banks take longer. Click confirm, and the transfer begins.
The money leaves your PayPal account right away, but it does not show up in your bank account until the arrival date. You can check the status of your transfer in PayPal's transaction history. If something goes wrong — for example, if you entered the wrong account number — PayPal will send you a message and may return the money to your PayPal account.
Using PayPal's when ready transfer option
If you need the money faster, PayPal offers an when ready transfer that puts money in your bank account within 30 minutes. This option costs between 1 and 2 percent of the amount you send. For example, transferring $100 when ready might cost $1 to $2.
To use when ready transfer, follow the same steps as a standard transfer, but look for an option that says "when ready" or "Fast Transfer" before you confirm. PayPal will show you the exact fee before you approve it. Not all banks support when ready transfer, so if you do not see that option, your bank may not be compatible yet.
when ready transfer is useful when you need cash quickly — for example, if you sold something and need to pay a bill the same day. For everyday transfers where you can wait a few days, the free standard option works just as well.
What to do if your transfer fails or takes too long
Most transfers go through without problems, but occasionally something goes wrong. If PayPal shows your transfer as "failed," check the reason PayPal gives you. Common issues include entering the wrong account number, linking an account that is closed, or your bank rejecting the transfer for security reasons.
If your bank rejected the transfer, contact your bank's customer service and ask why. Banks sometimes block transfers from services they do not recognize, or they may flag the transfer as suspicious if it is unusually large for your account. Once you explain the transfer to your bank, they can approve it and you can try again.
If your transfer is taking longer than the stated arrival date, wait a few more days before contacting PayPal. Delays sometimes happen during weekends or holidays, or if your bank processes transfers slowly. If it has been more than five business days, contact PayPal's support team through the Resolution Center in your account.
Limits on how much you can transfer
PayPal does not set a single daily or monthly limit that applies to everyone. Instead, your limit depends on your account history, how long you have used PayPal, and how much you have transferred before. New accounts usually have lower limits than established ones.
You can see your transfer limit by going to your account settings and looking for "Limits" or "Account Limits." If you hit your limit, you can still transfer money, but you may have to wait a few days for the transfer to process, or PayPal may ask you to confirm your identity.
If you regularly transfer large amounts and keep hitting your limit, contact PayPal support and explain your situation. They can sometimes raise your limit if your account is in good standing.
Transferring money to a different person's bank account
The process described above moves money from your PayPal account to your own bank account. If you want to send money to someone else's bank account, that is a different process called a bank transfer or withdrawal, and it works differently depending on whether the other person has a PayPal account.
If the other person has a PayPal account, you can send them money directly through PayPal using their email address or phone number. They then transfer it to their own bank account using the steps above. If they do not have a PayPal account, you would need to withdraw the money to your own bank account first, then send it to them through your bank or another service like a wire transfer.
Frequently Asked Questions
Can I transfer money to a bank account that is not in my name?
No. PayPal only allows you to transfer to a bank account that matches the name on your PayPal account. This is a security measure to prevent fraud. If you need to send money to someone else, send it to their PayPal account first, or withdraw to your own account and use your bank's transfer service.
What if I linked the wrong bank account by mistake?
You can unlink it and add the correct one. Go to your account settings, find the bank account, and select the option to remove it. Then add your correct bank account using the same process as before. If you already transferred money to the wrong account, contact PayPal support right away — they may be able to recover it.
Do I have to pay taxes on money I transfer from PayPal to my bank?
Transferring money to your bank does not create a tax event by itself. However, the money you earned in the first place may be taxable income depending on where it came from. If you sold items or provided services, that income is usually taxable. Keep records of your PayPal transactions in case you need them for tax purposes.
Why is my transfer showing as pending after three business days?
Delays can happen if your bank processes transfers slowly, if the transfer occurred over a weekend or holiday, or if PayPal flagged it for review. Wait a few more business days before contacting support. If it has been more than a week, reach out to PayPal through the Resolution Center and provide your transfer confirmation number.
Can I cancel a transfer after I have started it?
If the transfer is still pending, you may be able to cancel it through PayPal's transaction history. Once the money has left PayPal and arrived at your bank, you cannot cancel it through PayPal — you would need to contact your bank. when ready transfers usually cannot be canceled because they process so quickly.