The three ways to fund your PayPal account

You can put money into PayPal in three main ways: link a bank account and transfer money from it, add a debit or credit card, or deposit cash at certain retail locations. The bank transfer is usually free and takes one to three business days. Cards work when ready but may charge a small fee for certain transactions. Cash deposits are when ready but only work at specific stores and cost a few dollars.

Which method you choose depends on what you need the money for and how quickly you need it. If you are sending money to someone else, a bank transfer is cheapest. If you are buying something online right now, a card is fastest. If you do not have a bank account yet, cash deposit might be your only option.

Key Takeaways

  • Linking your bank account to PayPal is free and takes one to three business days, but you can only transfer money you already have in that account.
  • Adding a debit or credit card lets you fund PayPal when ready, though some transactions may charge a fee of 2.9% plus $0.30 or similar.
  • You can deposit cash at Walmart, CVS, and other retail partners for a fee of around $3.95, and the money appears in your PayPal account within minutes.
  • PayPal will ask you to confirm a small deposit to your bank account the first time you link it, which takes a few days but proves you own the account.

Linking a bank account and transferring money

This is the cheapest way to fund PayPal because there are no fees. Log into your PayPal account, go to your Wallet, and select "Link a bank account." You will need your routing number and account number, which you can find on a check or by logging into your bank's website. PayPal will ask for your bank login information or will connect through your bank's security system — do not give PayPal your actual bank password.

After you link the account, PayPal sends two small deposits (usually under $1 each) to your bank. This takes a few days. When they arrive, you go back to PayPal and confirm the exact amounts. This step proves you own the bank account and prevents fraud. Once confirmed, you can transfer money from your bank to PayPal whenever you want.

To actually move money in, go to your Wallet, select "Transfer Money," and choose "Transfer from your bank." Enter the amount and confirm. The money usually arrives in one to three business days. Weekends and holidays slow this down — a Friday transfer might not land until Tuesday.

Adding a debit or credit card

A debit or credit card funds your PayPal when ready, which is useful if you need to send money or make a purchase right away. Go to your Wallet, select "Link a card," and enter your card number, expiration date, and the three-digit security code on the back. PayPal may ask you to confirm the card by entering a code sent to your phone or email.

Once linked, your card is ready to use. When you send money or buy something, you can choose to pay from that card instead of your PayPal balance. The money comes out of your card when ready. Be aware that some transactions charge a fee — sending money to friends in the US is free, but sending to other countries or using certain payment methods may cost 2.9% of the amount plus $0.30.

You do not have to transfer money into PayPal first when you use a card. The card just sits there linked to your account, and you use it when you need it. This is different from a bank account, where you have to actively move money over.

Depositing cash at retail stores

If you do not have a bank account or card, you can deposit cash at Walmart, CVS, Family Dollar, and other participating stores. This puts money directly into your PayPal account. Go to your Wallet in PayPal, select "Add Cash," and choose your state and the store nearest you. PayPal will give you a reference number.

Take that reference number and your cash to the store. Go to the customer service desk or money services counter and tell them you want to deposit cash to PayPal. Give them your reference number and the cash. They will charge you a fee — usually around $3.95 — and take it out of the amount you deposit. The rest goes into your PayPal account within minutes.

This method is useful if you are paid in cash or do not trust online banking yet. The downside is the fee and the fact that you have to go to a physical store. Not all stores in your area may offer this service, so check the PayPal app first to see which ones near you do.

What happens after money is in your PayPal account

Once money is in your PayPal balance, you can use it to send money to other people, pay for things online, or leave it sitting there. Your balance does not earn interest — it just stays at whatever amount you have. If you do not use it, it stays in your account indefinitely.

You can also transfer money back out to your bank account if you change your mind. Go to your Wallet, select "Transfer Money," and choose "Transfer to your bank." It takes one to three business days and is free. Some people keep a small amount in PayPal for quick payments and keep the rest in their bank account where it might earn a tiny bit of interest.

Avoiding common mistakes when funding PayPal

The biggest mistake is trying to use a card or bank account that is not actually in your name. PayPal checks this, and if the name does not match your account, the transaction will fail. Make sure the name on your card or bank account is exactly the same as the name on your PayPal account.

Another common problem is forgetting to confirm your bank account after linking it. Many people link their bank, then wonder why they cannot transfer money. You have to wait for those two small deposits and enter the amounts to finish the process. This takes a few days, so plan ahead if you need money by a certain date.

Do not link someone else's bank account or card to your PayPal account, even if they say it is okay. If something goes wrong, it becomes a legal mess. Only use accounts that are in your own name.

Frequently Asked Questions

How long does it take to transfer money from my bank to PayPal?

One to three business days is normal. Weekends and holidays do not count as business days, so a Friday transfer might not arrive until Tuesday. Some banks are slower than others. If it has been more than three business days, contact PayPal support.

Can I use someone else's bank account to fund my PayPal?

No. The bank account must be in your name. PayPal verifies the name matches your account. Using someone else's account can result in your PayPal being frozen and may create legal problems for both of you.

Is there a limit to how much money I can transfer into PayPal?

Yes, but the limit depends on your account age and history. New accounts have lower limits, usually a few hundred dollars per transfer. As you use PayPal more, the limits increase. You can see your limit in your account settings under "Limits."

What if I deposit cash but the money does not show up?

Cash deposits usually appear within minutes. If it has been more than an hour, check that you used the correct reference number at the store. Contact PayPal support with your receipt from the store and your reference number, and they can track it down.

Do I have to keep money in PayPal, or can I transfer it back out?

You can transfer it back to your bank account anytime for free. It takes one to three business days. There is no rule saying you have to keep money in PayPal — many people only put money in when they need to send it or make a purchase.