The basic path: link your bank, then transfer
To move money from PayPal to your bank account, you link your bank details to PayPal, then initiate a transfer from the PayPal app or website. PayPal sends the money to your bank using the ACH network (Automated Clearing House), which is the same system banks use to move money between themselves. The transfer is free, but it takes one to three business days to arrive.
You do not need to do anything special on your bank's end. Once you have linked your account to PayPal, the money moves automatically through the banking system. Your bank will see it as a deposit from PayPal and post it to your account like any other incoming transfer.
The timing matters if you need the money quickly. If you transfer on a Friday afternoon, the money will not arrive until Monday or Tuesday. If you transfer on a holiday, the clock does not start until the next business day.
Key Takeaways
- Link your bank account to PayPal by providing your routing number and account number, which you can find on a check or in your bank's app.
- Free transfers take one to three business days; PayPal also offers when ready transfers for a fee of 1.5% of the amount you are sending.
- PayPal holds some transfers for review if the amount is large or unusual for your account, which can add a day or two to the timeline.
- Once the money leaves PayPal, your bank controls when it posts to your account, which is usually the same day it arrives but can be the next day.
How to link your bank account to PayPal
Open the PayPal app or go to PayPal.com and sign in. Tap or click your profile icon in the top right, then select Wallet or Settings depending on whether you are on mobile or desktop. Look for Link a bank account or Add bank account.
PayPal will ask for your bank's name, your account type (checking or savings), your routing number, and your account number. Your routing number is a nine-digit code specific to your bank; your account number is on the left side of any check you have. If you do not have checks, log into your bank's app or website and look for account details — most banks display both numbers there.
After you enter the information, PayPal may ask you to confirm the account by depositing two small amounts (usually under a dollar each) into your bank account. You then log back into PayPal and enter those amounts to prove you own the account. This step can take a few days because the deposits have to clear through the banking system first.
Starting a transfer and what happens next
Once your bank account is linked, go to Wallet in the PayPal app or website. You will see your PayPal balance. Tap or click Transfer money or Move money, then select Transfer to your bank. Enter the amount you want to send and confirm.
PayPal will show you the arrival date before you confirm. If you choose the free option, it will say something like "Arrives by Tuesday, January 14." If you choose when ready transfer (the paid option), it will say "Arrives in minutes." Once you confirm, the money leaves your PayPal account when ready, but it does not reach your bank right away unless you paid for when ready transfer.
You will see the transfer in your PayPal transaction history right away. Your bank may take a few hours to a full business day to show the incoming transfer as pending, and then another day to post it as available. Some banks post transfers the same day they arrive; others wait until the next morning.
When PayPal holds a transfer for review
If you are transferring a large amount, transferring for the first time, or transferring from a newly linked account, PayPal may hold the transfer for review. This is a fraud check. PayPal will tell you when you initiate the transfer that it is under review, and it will give you an estimated release date — usually 24 to 48 hours later.
During the review period, the money is still in your PayPal account. You can cancel the transfer if you change your mind. Once PayPal releases it, the transfer goes to your bank on the normal timeline (one to three business days for free transfers).
You cannot speed up a review hold. If PayPal needs more information, it will contact you through the app or email. If you have a verified account with a long history and no disputes, holds are rare.
when ready transfers and when they make sense
PayPal offers when ready transfers to your bank for a fee of 1.5% of the amount you send, with a minimum fee of 25 cents. If you transfer $100, you pay $1.50. If you transfer $1,000, you pay $15. The money arrives in minutes instead of days.
when ready transfer is useful if you need the money the same day — for example, if you sold something and the buyer is waiting, or if you need to cover an unexpected expense. It is not useful for routine transfers where you can wait a few days, because the fee adds up.
Not all banks support when ready transfers. PayPal will tell you whether your bank is may be able to access when you try to initiate one. If your bank is not on the list, you have to use the free transfer and wait.
What to do if a transfer does not arrive
If your transfer has not arrived by the date PayPal promised, check your PayPal transaction history first. Look for the transfer and see what status it shows. If it says Completed, the money has left PayPal and is in the banking system; contact your bank to ask where it is.
If it says Pending or In progress, it is still being processed. Wait until the promised date has passed, then contact PayPal through the app. Go to Resolution Center or Help and report the missing transfer. PayPal will investigate and either release the transfer or refund it to your PayPal account.
If your bank says it never received the transfer, make sure you gave PayPal the correct routing and account numbers. A single digit wrong will send the money to the wrong account. PayPal can sometimes recover funds sent to the wrong account, but it requires the receiving bank to cooperate, which takes time.
Limits on how much you can transfer
PayPal does not publish a single transfer limit that applies to everyone. Limits depend on your account age, verification status, transaction history, and whether you have had disputes. A brand-new account might be limited to a few hundred dollars per transfer. An established account with years of history might be able to transfer thousands.
If you hit a limit, PayPal will tell you when you try to initiate the transfer. You can request a limit increase through the app, but PayPal will review your account first. There is no may provide it will approve the increase.
If you need to move a large amount and you are hitting limits, you can make multiple transfers over several days. Each transfer counts separately toward your limit, so spreading them out may let you move more money overall.
Frequently Asked Questions
Can I transfer money to someone else's bank account through PayPal?
No. Transfers from PayPal to a bank account only work with the bank account linked to your own PayPal profile. To send money to someone else, use PayPal's peer-to-peer transfer feature (send money to their email or phone number) or use a different service like Venmo or a wire transfer.
What if my bank account is closed or I change banks?
If your bank account is closed, PayPal will reject the transfer and return the money to your PayPal balance. Update your bank information in PayPal before you close an account. If you change banks, unlink the old account and link the new one. You may have to verify the new account with the two-deposit method again.
Do I pay taxes on money I transfer from PayPal to my bank?
Transferring money from PayPal to your bank is not a taxable event. The money was already in your PayPal account. However, the money you received in PayPal in the first place may be taxable income depending on where it came from. If you sold goods or services, that income is taxable. If someone sent you a gift, it is not.
Why does PayPal show the money left my account but my bank has not received it yet?
PayPal releases the money when ready, but it travels through the ACH network, which processes transfers in batches overnight. Your bank then has to receive the batch, match it to your account, and post it. This can take a full business day even after PayPal shows the transfer as complete.
Can I cancel a transfer after I have started it?
Yes, but only if it is still pending in PayPal. Once PayPal shows the transfer as completed, it has left the PayPal system and is in the banking network. At that point, you have to contact your bank to try to reverse it, which is difficult and not always possible. Cancel as soon as you realize you made a mistake.