The fastest way to transfer money from PayPal to your bank account
You can move money from PayPal to a linked bank account in two to three business days using the standard transfer option, or in one business day using PayPal's expedited transfer service (which charges a small fee). The process takes about two minutes: open PayPal, go to your Wallet, select your bank account, enter the amount, and confirm. Your bank will show the deposit as pending when ready, but the funds won't be spendable until the transfer clears.
Before you can transfer anything, you need to link a bank account to your PayPal account. This requires your routing number and account number, which you'll find on the bottom left of any check or in your bank's app. PayPal will deposit two small test amounts (usually under a dollar) into that account within a few days, and you'll need to confirm those amounts in PayPal to verify ownership. Only after that verification is complete can you move money out.
Key Takeaways
- Standard transfers take two to three business days and cost nothing; expedited transfers arrive in one business day but charge a fee (usually $0.25 to $1.50 depending on the amount).
- You must link your bank account and verify it with two small test deposits before you can transfer money for the first time.
- Transfers process on business days only, so a transfer initiated on Friday evening won't start moving until Monday.
- Your PayPal balance must be at least the amount you're trying to transfer, and you cannot transfer money that's on hold or pending.
How to link your bank account to PayPal
Log into PayPal on a computer or in the app and go to Settings (the gear icon). Select Wallet, then Link a Bank Account. Enter your routing number and account number—both appear on a check, or you can find them in your bank's mobile app under account details. PayPal will ask you to confirm your name and address.
Within one to two business days, PayPal deposits two small amounts (usually $0.01 and $0.02, but they vary) into your bank account. Check your bank statement for these deposits, then return to PayPal, go back to your linked bank account, and enter both amounts. PayPal verifies the amounts match and unlocks your account for transfers. Until you complete this step, you cannot move money out.
If you don't see the test deposits after three business days, check that you entered your routing and account numbers correctly. If they're wrong, delete the account from PayPal and start over. If the numbers are correct but deposits still haven't arrived, contact your bank—some banks flag small deposits as suspicious and hold them.
Standard transfer versus expedited transfer
A standard transfer takes two to three business days and costs nothing. The money leaves your PayPal account when ready, but your bank won't show it as available to spend until it clears. This is the default option and works fine if you're not in a rush.
An expedited transfer arrives in one business day and costs a fee. The fee depends on the amount you're transferring—PayPal typically charges $0.25 for transfers under $10, and up to $1.50 for larger amounts. You choose expedited at the moment you initiate the transfer. The money still leaves your PayPal account when ready, but your bank processes it faster.
Neither option is truly when ready. Even expedited transfers don't show as spendable until your bank's next business day processing cycle. If you need cash today, a standard transfer won't work—you'd need to use a PayPal debit card, withdraw from an ATM, or ask PayPal about when ready transfers to a debit card (a separate feature with its own fees and limits).
What happens if your transfer fails or gets stuck
A transfer can fail if your bank account information is wrong, your bank rejects the deposit, or your PayPal account is limited or under review. PayPal will send you an email explaining why the transfer didn't go through. The money returns to your PayPal balance within one to three business days.
If a transfer shows as pending for more than five business days, contact PayPal's Resolution Center. Have your transfer confirmation number ready (PayPal sends this in an email when you initiate the transfer). PayPal can check with your bank to see whether the deposit was received and rejected, or whether it's still in transit. If your bank received it but rejected it, you'll need to contact your bank directly to find out why—common reasons include a closed account, a name mismatch, or a frozen account.
If you initiated a transfer and then changed your mind, you cannot cancel it once it's left PayPal. Standard and expedited transfers are final. The only way to stop it is if your bank rejects it, which puts the money back in your PayPal account.
Limits on how much you can transfer
PayPal doesn't publish a single transfer limit that applies to everyone. Your limit depends on your account history, how long you've had the account, and whether PayPal has flagged your account for review. New accounts typically have lower limits—sometimes as low as $500 per transfer—while established accounts may transfer thousands.
You can see your transfer limit by going to Settings, then Wallet, then selecting your bank account. PayPal shows your available balance and any limits that explore. If you try to transfer more than your limit allows, PayPal will reject the transfer and tell you the maximum amount you can move.
If you need to transfer more than your limit, you have two options: split the transfer into multiple transactions (spaced a few days apart), or contact PayPal to request a limit increase. PayPal reviews limit increase requests based on your account activity and history, but there's no may provide they'll approve it.
Money on hold or pending—why you can't transfer it yet
PayPal sometimes holds money for 21 days after you receive it, especially if the transaction is unusual or if you're a new seller. Money that's on hold shows in your PayPal balance, but you cannot transfer it to your bank account. You can still use it to pay other PayPal users or make purchases, but moving it out is blocked until the hold lifts.
Similarly, if you received money through a payment plan or invoice, that money may be pending until the full amount is received or the plan is complete. Again, you'll see it in your balance but won't be able to transfer it.
To check whether money is on hold, go to your Activity or Transaction History in PayPal and look for a note next to the transaction. If it says "on hold" or "pending," click it to see the expected release date. You cannot speed up a hold—you have to wait until PayPal releases it automatically.
Frequently Asked Questions
Can I transfer money from PayPal to someone else's bank account?
No. PayPal transfers only go to a bank account that's linked to your own PayPal account and registered under your name. To send money to someone else, use PayPal's send money feature (which moves funds between PayPal accounts) or ask them to send you their PayPal.me link.
What if my bank account is closed or I changed banks?
Remove the old bank account from PayPal and link your new one. You'll need to verify the new account with test deposits again. If you try to transfer to a closed account, PayPal will reject the transfer and return the money to your balance within a few days.
Do I pay taxes on money I transfer from PayPal to my bank?
The transfer itself isn't a taxable event—you only owe taxes on the income that generated the PayPal balance in the first place. If you received the money as payment for work or sales, that income is taxable whether it stays in PayPal or moves to your bank. Keep records of what the money was for.
Why is my transfer taking longer than three business days?
Transfers initiated on weekends or holidays don't start processing until the next business day. If you initiated a transfer on Friday, it won't reach your bank until Tuesday or Wednesday. If it's been more than five business days since you initiated it, contact PayPal with your confirmation number.
Can I set up automatic transfers from PayPal to my bank?
PayPal doesn't offer automatic recurring transfers. You have to initiate each transfer manually. However, you can set up a PayPal debit card and use it to withdraw cash from ATMs, which is faster than waiting for a bank transfer if you need when ready access.