The basic steps to transfer PayPal funds to your bank
To move money from PayPal to your bank account, you log into PayPal, go to your Wallet, select your bank account, and request a transfer. PayPal then sends the money to the account you've linked — usually within one to three business days, though it can take longer depending on your bank.
The process is straightforward once your bank account is connected to PayPal. You don't need to pay a fee for standard transfers, though PayPal offers a faster option (usually one business day) that costs a small percentage of the amount you're moving. Most people use the free option and straightforward wait the extra day or two.
Before you can transfer anything, PayPal needs to verify that the bank account is actually yours. This verification happens automatically for most people, but it can take a few days. Until then, you can receive money in PayPal but can't move it out to that particular account.
Key Takeaways
- Standard transfers from PayPal to a linked bank account are free and take one to three business days.
- You must link and verify your bank account in PayPal before you can transfer money out.
- PayPal offers an when ready or next-day transfer option for a fee, usually 1.5% of the amount.
- Transfers typically process on business days only, so a Friday transfer may not arrive until Tuesday.
- If your transfer doesn't arrive within the expected timeframe, check your PayPal transaction history and contact your bank to confirm they received it.
How to link your bank account to PayPal
Start by logging into your PayPal account on a computer or the PayPal app. Go to Settings (the gear icon), then select Wallet or Accounts and Cards. Look for the option to add a bank account — the exact wording changes depending on whether you're on the website or app, but it's always in that general area.
PayPal will ask for your bank's routing number, your account number, and the account type (checking or savings). You can find both numbers on a check, or log into your bank's website to find them. Enter the information carefully — a single wrong digit means the transfer will fail or go to the wrong place.
After you submit the information, PayPal confirms ownership by depositing two small amounts (usually under a dollar each) into your account. Your bank will show these deposits within a few days. You then return to PayPal and enter the exact amounts to confirm you received them. Once you do, the account is verified and ready to use.
The difference between standard and when ready transfers
Standard transfers are free and take one to three business days. PayPal processes them on weekdays only, so if you request a transfer on Friday evening, it won't leave PayPal until Monday, and your bank may not receive it until Wednesday. This is the option most people choose because there's no cost.
when ready or next-day transfers cost money — typically 1.5% of the amount you're moving, though the exact percentage varies. If you transfer $100, you'd pay $1.50 and receive $98.50 in your bank account. These transfers process when ready or by the next business day, which matters if you need the money urgently.
Neither option is "better" — it depends on whether you need the money quickly. If you're moving money you won't need for a few days, the free standard transfer makes sense. If you need it today or tomorrow, the fee is worth considering.
What happens if a transfer fails or takes longer than expected
Transfers usually succeed without problems, but occasionally something goes wrong. The most common reason is a typo in the routing or account number when you first linked the account. If that's the case, PayPal will reject the transfer and the money returns to your PayPal balance within a few days.
If a transfer doesn't arrive within the timeframe PayPal promised, check your PayPal transaction history first. Look for the transfer and see what status it shows — "completed," "pending," or "failed" tells you what happened. If it shows completed but your bank hasn't received it, contact your bank's customer service with the transfer date and amount. Banks can trace transfers and tell you where the money is.
If PayPal shows the transfer as failed, you'll see a reason — usually a problem with the account information. You can then correct the account details and try again. PayPal keeps the money in your account while the transfer is being sorted out, so you won't lose it.
Transferring money on weekends and holidays
PayPal and banks both process transfers on business days only. If you request a transfer on Saturday, Sunday, or a federal holiday, it won't actually leave PayPal until the next business day. This means a Friday evening transfer might not arrive until the following Wednesday or Thursday.
If you need money on a specific day, plan ahead. Request the transfer several business days early, or use the when ready transfer option if the fee is worth the certainty. Don't assume that requesting a transfer at 11 p.m. on Friday will be processed when ready — it won't be.
Transferring from PayPal to a different bank account
You can link multiple bank accounts to PayPal and transfer to any of them. To add a second account, follow the same process as the first: go to Settings, add the account, and verify it with the two small deposits. Once it's verified, you can choose which account to transfer to each time you move money.
If you want to transfer to an account at a different bank than the one you originally linked, you don't need to remove the old account — just add the new one. PayPal lets you keep both active. This is useful if you're switching banks or want to move money to a savings account at a different institution.
If you no longer use an old bank account, you can remove it from PayPal to keep your account clean. Go to Settings, find the account, and select the option to delete it. This doesn't affect any past transfers — it just removes the account from your list of options for future transfers.
Why your bank might reject a PayPal transfer
Banks occasionally reject incoming transfers, even when the account information is correct. This usually happens if your bank's fraud detection system flags the transfer as unusual — for example, if you normally receive small deposits and suddenly get a large one, or if the transfer comes from an unfamiliar source.
If your bank rejects a transfer, the money returns to your PayPal account within a few business days. Contact your bank to ask why they rejected it and whether you need to do anything to accept future transfers from PayPal. Some banks let you pre-approve transfers from specific sources to prevent this.
Another reason for rejection is a closed or frozen account. If you linked a bank account that's no longer active, the transfer will fail. Make sure the account you're transferring to is open and in good standing with your bank.
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 time PayPal processes them. If you request a transfer on a Friday, PayPal doesn't process it until Monday, so you're looking at Monday through Wednesday. when ready transfers usually arrive within hours or by the next business day, depending on your bank.
Can I transfer money from PayPal to someone else's bank account?
No. PayPal transfers only go to a bank account linked to your own PayPal account. If you want to send money to someone else, you can use PayPal's send money feature to transfer directly to their PayPal account or email address, but not to their bank account.
Is there a limit to how much I can transfer at once?
PayPal sets limits based on your account history and verification status. New accounts have lower limits than established ones. Check your account settings to see your current limit, or contact PayPal if you need to transfer more than the limit allows. Limits typically increase over time as you use the account.
What if I accidentally transferred money to the wrong bank account?
Once a transfer leaves PayPal and reaches a bank account, you can't reverse it through PayPal. You'll need to contact the bank that received the money and ask them to return it. Provide the bank with the transfer date, amount, and your PayPal account details. The process can take weeks, so it's worth double-checking account numbers before you transfer.
Do I have to pay taxes on money I transfer from PayPal to my bank?
Transferring money you already earned doesn't create a new tax event — you already owe taxes on the income when you earned it, not when you move it to your bank. However, if PayPal sends you a tax form (like a 1099-K), that form reports the income to the IRS, and you're responsible for reporting it on your tax return.