How to transfer money from PayPal to your bank account

You can move money from PayPal to your bank account in a few minutes using PayPal's transfer tool. The money usually arrives within one to three business days, though the exact timing depends on your bank. PayPal does not charge a fee for standard transfers to a linked U.S. bank account, but faster options (if your bank supports them) may cost a small amount.

The process is straightforward: you log into PayPal, go to your wallet, select the bank account you want to send money to, enter the amount, and confirm. Your bank account must already be linked to your PayPal account before you can transfer to it — if it is not, you will need to add it first, which takes a few minutes and requires your routing number and account number.

Key Takeaways

  • Standard transfers from PayPal to a linked U.S. bank account are free and take one to three business days.
  • Your bank account must be linked to your PayPal account before you can transfer money to it, which requires your routing number and account number.
  • when ready transfers are available from some banks for a fee of around $0.25 to $1.50, depending on the amount.
  • You can only transfer money that is in your PayPal balance — money held for pending transactions or disputes cannot be moved.

Linking your bank account to PayPal

Before you can transfer money out, you need to tell PayPal which bank account to send it to. Go to your PayPal account settings, find the "Wallet" or "Banks and Cards" section, and select "Link a Bank Account." PayPal will ask for your bank's routing number (a nine-digit code that identifies your bank) and your account number.

You can find both numbers on the bottom left of any check you have, or by logging into your bank's website or calling the bank directly. After you enter them, PayPal will make two small test deposits to your account — usually within a few days. You then log back into PayPal and confirm the amounts of those deposits. This confirms that you own the account and prevents someone else from linking an account that is not theirs.

The standard transfer process

Once your bank account is linked, transferring money takes just a few steps. Log into PayPal on a computer or the mobile app, tap or click "Wallet," then select "Transfer Money." Choose "Transfer to Your Bank" and pick the bank account from the list of linked accounts.

Enter the amount you want to send and review the details — PayPal will show you the fee (usually zero for standard transfers) and the expected arrival date. Confirm the transfer, and it is sent. You will get a confirmation number and an email receipt. The money will appear in your bank account within one to three business days; most transfers arrive within one business day, but weekends and holidays can add time.

when ready transfers and when they cost money

If you need the money faster, PayPal offers when ready transfers to certain banks. These arrive within 30 minutes instead of one to three days. Not all banks support when ready transfers yet — PayPal's website has a list of participating banks, and you can check whether yours is included before you pay the fee.

when ready transfers cost between $0.25 and $1.50 depending on the amount you are sending. You choose the when ready option at the same point where you would choose standard transfer, and PayPal shows you the fee before you confirm. If your bank is not on the when ready transfer list, the standard free option is your only choice.

What money can and cannot be transferred

You can only transfer money that is sitting in your PayPal balance — the amount shown under "Available Balance" in your wallet. Money that is on hold because a transaction is pending, or money that is locked because of a dispute or chargeback, cannot be transferred out until the hold or dispute is resolved.

If you received money as a seller and it is in a "pending" state, you will need to wait for it to clear (usually 21 days for new sellers, shorter for established accounts) before you can move it. Similarly, if someone has filed a dispute against a payment you sent, that money stays in PayPal until the dispute is closed. You can see which money is available and which is held by looking at your balance breakdown in the wallet section.

Troubleshooting transfers that do not arrive

If your transfer does not show up in your bank account within the expected timeframe, first check that you entered the correct bank account number and routing number. A single digit wrong will send the money to the wrong account, and it will not bounce back automatically — you will need to contact PayPal to trace it.

If the details were correct, check with your bank to see if the transfer is pending or if there is a hold on it. Some banks flag incoming transfers as suspicious if they are unusually large or if the account has not received transfers before. You may need to call your bank to release the hold. If your bank says they have not received anything, contact PayPal's support team with your transfer confirmation number and they can investigate where the money went.

Frequently Asked Questions

Can I transfer money to someone else's bank account?

No. PayPal only allows you to transfer money to a bank account that is linked to your own PayPal account. If you want to send money to someone else, use PayPal's "Send Money" feature to transfer it to their PayPal account or email address instead.

What if I do not have a bank account yet?

You will need to open a bank account before you can move money out of PayPal. Many banks offer accounts online with no minimum balance. Once your account is open and you have your routing and account numbers, you can link it to PayPal and start transferring.

Why is my transfer taking longer than three days?

Transfers usually arrive within one to three business days, but weekends and bank holidays add time. If you transferred on a Friday, it may not arrive until Tuesday or Wednesday. If it has been more than five business days, contact PayPal with your confirmation number so they can track it down.

Can I cancel a transfer after I have sent it?

Standard transfers cannot be cancelled once they are sent — they are on their way to your bank. when ready transfers also cannot be cancelled. If you made a mistake, contact PayPal right away with your confirmation number and they may be able to help, but there is no may provide.

Do I pay taxes on money I transfer to my bank account?

Transferring your own money to your bank account is not a taxable event. However, if the money in your PayPal account came from selling goods or services, you may owe taxes on that income. Keep records of what the money was for in case you need to report it.