PayPal gives you three ways to move money to a bank account: an when ready transfer (costs a fee, arrives in minutes), a standard transfer (free, takes one to three business days), or a withdrawal to a debit card linked to your account
The method you choose depends on how quickly you need the money and whether you want to pay a fee. All three routes require that your bank account or debit card is already added to your PayPal account and verified — PayPal confirms small deposits to your account before you can use it for transfers.
If your bank account is not yet linked, you will need to add it first. Go to your PayPal wallet, select "Link a bank account," and enter your routing and account numbers. PayPal will make two small test deposits (usually under one dollar each) to your account within one to two business days. Once those deposits arrive, you log back into PayPal, confirm the amounts, and your account is verified and ready to use.
Key Takeaways
- Standard transfers are free and take one to three business days; when ready transfers cost between 1.5% and 2% of the amount and arrive within minutes.
- Your bank account must be added to PayPal and verified with two small test deposits before you can transfer money to it.
- when ready transfers go directly to a linked debit card, while standard transfers go to your linked bank account.
- If you have a PayPal Cash or Cash Plus account, you can also withdraw money at an ATM or in person at a retail location.
Standard transfer: free but slower
A standard transfer sends your PayPal balance to your linked bank account at no cost. The money usually arrives in one to three business days, though it can take longer if your bank processes transfers slowly or if you initiate the transfer on a weekend or holiday.
To start a standard transfer, go to your PayPal wallet, click "Transfer money," then "Transfer to your bank." Select the bank account you want to use, enter the amount, and confirm. PayPal will show you the expected arrival date before you complete the transfer. Once you confirm, the transfer cannot be cancelled, so double-check the amount and account before you submit.
Standard transfers work best if you are not in a hurry and want to avoid fees. If you transfer regularly, the savings add up quickly — a $500 when ready transfer costs $7.50 to $10, while a standard transfer costs nothing.
when ready transfer: fast but with a fee
An when ready transfer sends money to a linked debit card within minutes. PayPal charges between 1.5% and 2% of the amount you transfer, with a minimum fee of around $0.25 and a maximum that varies by account type. For example, a $100 when ready transfer costs roughly $1.50 to $2.00.
To use when ready transfer, go to your PayPal wallet, click "Transfer money," then "when ready transfer to debit card." Select the debit card linked to your account, enter the amount, and confirm. The money will appear in your debit card account within minutes — usually faster than it takes to refresh your screen, though occasionally it can take up to an hour.
when ready transfer is useful when you need cash quickly — to cover an unexpected expense, pay a bill that is due today, or move money before a weekend when your bank is closed. The fee is the trade-off for speed.
ATM and retail withdrawals for PayPal Cash accounts
If you have a PayPal Cash or PayPal Cash Plus account, you can withdraw money at ATMs or in person at participating retailers without transferring to a bank account first. PayPal Cash Plus accounts include a debit card; Cash accounts do not, but you can still withdraw at ATMs and stores.
To withdraw at an ATM, insert your PayPal debit card (if you have one) or use your PayPal account number at a participating ATM. To withdraw in person, go to a retail location that participates in the PayPal network — common partners include Walmart, Target, and CVS — and ask the cashier to process a cash withdrawal from your PayPal account.
ATM withdrawals may carry a small fee depending on the ATM operator; retail withdrawals are usually free. This route is fastest if you need physical cash rather than money in a bank account.
What to do if your bank account is not verified yet
PayPal requires verification before you can transfer to a bank account. The verification process takes one to two business days and involves two small test deposits that PayPal makes to your account.
After you add your bank account to PayPal, check your bank statement in one to two business days for two deposits, usually under one dollar each. The deposit descriptions will include reference numbers. Log back into PayPal, go to your bank account settings, and enter those amounts to confirm you own the account. Once PayPal confirms the amounts match, your account is verified and you can transfer when ready.
If you do not see the deposits after two business days, check that you entered your routing and account numbers correctly. If the numbers are wrong, remove the account from PayPal and add it again with the correct information. If the numbers are correct but the deposits have not arrived, contact your bank to confirm they are not being filtered as spam or held in a pending queue.
Transfers that fail or take longer than expected
Standard transfers occasionally fail or get delayed. Common reasons include a mismatch between the name on your PayPal account and the name on your bank account, an incorrect routing number, or a bank that processes transfers slowly.
If a standard transfer does not arrive within three business days, log into PayPal and check the transfer history to see the status. If it shows "completed," contact your bank and provide them with the transfer reference number from PayPal — your bank can trace the transfer and tell you where it is. If PayPal shows the transfer as "pending" or "failed," contact PayPal support with your transaction ID and they will investigate.
when ready transfers to debit cards rarely fail, but if one does not arrive within an hour, check that the debit card is still active and has not expired. If the card is fine, contact PayPal support with the transaction ID and they can resend the transfer or refund the fee.
Limits on how much you can transfer
PayPal sets limits on how much you can transfer in a single transaction and over a rolling period. The limits vary based on your account history, how long you have been with PayPal, and whether your account is verified.
New accounts typically have lower limits — often $500 to $1,000 per transfer. As your account ages and you complete more transactions, PayPal raises the limits. You can check your current limit by starting a transfer and looking at the maximum amount PayPal allows you to enter.
If you need to transfer more than your limit, you can split the transfer into multiple transactions, or you can contact PayPal support to request a limit increase. PayPal reviews limit increase requests based on your account history and may approve them within a few days.
Frequently Asked Questions
Can I transfer to someone else's bank account?
No. PayPal transfers only go to a bank account or debit card registered to your own PayPal account. To send money to someone else, use PayPal's "Send money" feature, which transfers funds to their PayPal account or email address, not directly to their bank.
What if my bank account name does not match my PayPal name exactly?
Minor differences — like a middle initial or a nickname — usually do not cause problems. But if the names are significantly different, PayPal or your bank may reject the transfer. Contact your bank to confirm what name is registered on the account, then update your PayPal profile to match exactly before you transfer.
Do I 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 transactions over a certain threshold to the IRS, so keep records of what the money was for.
Can I reverse a transfer after I send it?
Standard transfers cannot be reversed once they are confirmed and sent. when ready transfers also cannot be reversed, but if the money does not arrive within an hour, contact PayPal and they may be able to stop it. Always double-check the amount and account before you confirm any transfer.
Why does PayPal charge a fee for when ready transfer but not for standard transfer?
when ready transfers use a different payment network that costs PayPal more to operate, so they pass that cost to you as a fee. Standard transfers use the regular banking system, which is slower but cheaper for PayPal to run, so they offer it for free.