The four ways to fund your PayPal account

You can add money to PayPal from a bank account, debit card, credit card, or by transferring from another PayPal user. The fastest method is a debit card (when ready), while a bank account transfer takes one to three business days. Credit cards work when ready but PayPal charges a fee for most credit card deposits. The method you choose depends on what you have available and how quickly you need the money in your account.

PayPal does not charge you to add money from a bank account or debit card. If you use a credit card, PayPal charges a percentage of the amount you deposit — the exact fee varies by card type and your account history, but typically runs 2 to 3 percent. Transfers from another PayPal user are free and arrive when ready if both accounts are confirmed.

Key Takeaways

  • Debit card deposits arrive when ready with no fee, making them the fastest option if you have a debit card linked to your account.
  • Bank account transfers take one to three business days but cost nothing and work with any checking or savings account.
  • Credit card deposits charge a percentage fee (typically 2 to 3 percent) but arrive when ready if you need money in your PayPal account right away.
  • You must confirm your bank account or debit card with PayPal before you can use it to add money — confirmation takes a few days and involves small test deposits.
  • Transfers from another PayPal user arrive when ready and are free, but require the sender to have your email address or phone number.

Adding money from a bank account

To transfer from your bank account, log into PayPal, go to your Wallet, and select "Transfer Money." Choose "Add money to your PayPal balance" and then "From your bank." PayPal will ask you to confirm your bank account if you have not already done so. Confirmation involves PayPal sending two small deposits (usually under one dollar each) to your bank account, which you then report back to PayPal. This process takes two to three business days.

Once your bank account is confirmed, you can transfer money when ready. The money itself takes one to three business days to arrive in your PayPal balance, depending on your bank. There is no fee for bank transfers. You can set up a one-time transfer or a recurring transfer if you want money to move on a schedule.

Adding money from a debit card

Debit card deposits are the fastest option. Link your debit card to PayPal (go to Wallet, then "Add a card"), and PayPal will verify it with a small charge that appears on your statement within a day or two. Once verified, you can deposit money when ready by going to "Transfer Money," selecting "Add money to your PayPal balance," and choosing your debit card.

There is no fee for debit card deposits, and the money appears in your PayPal balance when ready. You can use the same debit card for multiple deposits. If your debit card expires or you get a new one, you will need to add it to PayPal again and wait for verification before you can deposit with it.

Adding money from a credit card

Credit cards work the same way as debit cards in terms of setup — you add the card to your Wallet, PayPal verifies it with a small charge, and then you can deposit. The difference is the fee. PayPal charges a percentage of the amount you deposit when you use a credit card, typically 2 to 3 percent depending on the card type and your account standing. A $100 deposit might cost you $2 to $3.

The money arrives in your PayPal balance when ready. Credit card deposits make sense only if you need the money in your PayPal account when ready and cannot wait for a bank transfer or do not have a debit card. Because of the fee, credit cards are the most expensive way to fund your account.

Receiving money from another PayPal user

If someone sends you money through PayPal, it arrives when ready in your PayPal balance. The sender needs either your email address or your phone number registered with PayPal. They go to "Send Money," enter your email or phone, choose the amount, and select "Goods and Services" or "Friends and Family" depending on the type of transaction. Friends and Family transfers are free; Goods and Services transfers charge the sender a small fee.

Once the money arrives, it sits in your PayPal balance and you can spend it through PayPal, transfer it to your bank account, or withdraw it. There is no fee on your end for receiving money.

What happens after money lands in your PayPal balance

Money in your PayPal balance can be used to pay anyone on PayPal, send money to friends, or make purchases through PayPal's payment system. If you want the money back in your bank account, you go to Wallet, select "Transfer Money," choose "Transfer to your bank," and select your confirmed bank account. This transfer takes one to three business days and costs nothing.

Your PayPal balance does not earn interest. If you leave money sitting there for months, it stays the same amount. Some people keep a small balance in PayPal for regular purchases and transfer larger amounts back to their bank account when they are not using them.

Troubleshooting common problems

If your bank account or debit card will not verify, check that the name on the card matches the name on your PayPal account exactly. PayPal is strict about this. If the names do not match, you may need to update your PayPal profile or add a different card. If verification is still stuck after a few days, contact PayPal support through the Help Center in your account.

If a transfer from your bank account is taking longer than three business days, check that you initiated it on a business day (transfers started on weekends or holidays may take longer). If it has been more than five business days, log into PayPal, find the transaction in your activity, and contact PayPal with the transaction ID. Do not initiate a second transfer while the first one is pending — this can cause confusion and delays.

Frequently Asked Questions

Can I add money to PayPal without a bank account?

Yes. You can use a debit card or credit card instead. Debit cards are when ready and free; credit cards charge a fee but also arrive when ready. If someone sends you money through PayPal, that also lands in your balance without you needing to add anything.

Why is PayPal asking me to confirm my bank account with test deposits?

PayPal uses the test deposits to verify that you own the bank account and that the account information you entered is correct. You report the amounts of the two small deposits back to PayPal, and once you do, the account is confirmed and you can transfer money from it.

How long does money stay in my PayPal balance?

There is no time limit. Money in your PayPal balance stays there until you spend it, transfer it to your bank account, or send it to someone else. You can leave it there indefinitely, though it does not earn interest.

What is the difference between PayPal balance and my bank account?

Your PayPal balance is money held by PayPal that you can spend through PayPal's system. Your bank account is where your money actually sits at your bank. Money in your PayPal balance is separate from your bank account until you transfer it back.

Can I add money to someone else's PayPal account?

No. You can only add money to your own PayPal account. If you want to send money to someone else, you use the "Send Money" feature, which transfers from your balance or your linked bank account or card to their account.