What happens when you link a bank account to PayPal

Linking a bank account to PayPal means giving PayPal permission to move money between your bank and your PayPal balance. Once linked, you can transfer money from your bank into PayPal to pay for things, or pull money out of PayPal back into your bank account. PayPal does not automatically take money from your account — you decide when and how much to move.

The link itself is find. PayPal uses encryption, which scrambles your information so only PayPal and your bank can read it. Your actual bank account number is not stored in a way that PayPal can use to make charges on its own. You stay in control of when money moves.

Key Takeaways

  • You will need your bank's routing number and your account number to link your account, both of which appear on a check or in your online banking.
  • PayPal will make two small test deposits to your bank account within a few days, and you must confirm the amounts to complete the link.
  • The entire process usually takes three to five business days from start to finish.
  • Once linked, you can transfer money to PayPal whenever you need it, or withdraw your PayPal balance back to your bank at any time.

Gather the information PayPal will ask for

Before you start, have your bank account details ready. You will need your routing number (a nine-digit code that identifies your specific bank) and your account number (the unique number for your account at that bank). Both appear on the bottom left of any check you have. If you do not have checks, log into your bank's website or app — most show these numbers in the account details section.

You will also need your PayPal password and access to the email address connected to your PayPal account. If you have not set up a PayPal account yet, you can create one at paypal.com using an email address and password of your choice.

The steps to link your bank account

Log into your PayPal account on a computer or in the PayPal app. On a computer, click the gear icon in the top right corner and select "Account Settings." In the app, tap the menu icon (three horizontal lines) and go to "Settings."

Look for a section called "Linked Banks and Cards" or "Bank Accounts" — the exact name varies slightly depending on whether you are on a computer or phone. Click the button to add a new bank account. PayPal will ask you to enter your bank's name, your routing number, and your account number. Type these carefully, as mistakes will cause the link to fail.

After you submit this information, PayPal will tell you that it is sending two small test deposits to your bank account. These deposits are real money — usually between 1 and 2 dollars each. They arrive within two to four business days. This step proves you own the account.

Confirming the test deposits

Once the deposits land in your bank account, go back to PayPal and find the section where you started the link. PayPal will ask you to enter the exact amounts of the two test deposits. Log into your bank account online or check your statement to find these amounts, then type them into PayPal. If the amounts match, PayPal confirms the link is real and complete.

If you do not see the deposits after five business days, the routing or account number may have been entered incorrectly. PayPal will let you try again. If you try three times and the deposits still do not arrive, contact your bank to make sure your account is set up to receive transfers. Some accounts, particularly savings accounts at certain banks, have restrictions that block incoming transfers.

What to do once your bank account is linked

With your bank account linked, you can now move money between your bank and PayPal. To add money to your PayPal balance, go to your PayPal wallet, select "Transfer Money," and choose "Transfer from your bank." Enter the amount and confirm. The money usually arrives within one to two business days.

To move money out of PayPal back to your bank, go to your wallet, select "Transfer Money," and choose "Transfer to your bank." Again, enter the amount and confirm. This also takes one to two business days. You can do this as often as you want, and there is no fee for transfers between PayPal and a linked bank account.

Keeping your linked account find

Once your bank account is linked, protect your PayPal password the same way you protect your bank password. Do not share it, and do not use the same password for PayPal that you use for your bank or email. If someone gains access to your PayPal account, they could transfer money out of your PayPal balance, though they cannot directly access your bank account itself.

If you suspect someone has accessed your PayPal account without permission, change your password when ready and contact PayPal's support team. You can also unlink your bank account at any time by going back to "Linked Banks and Cards" and selecting the option to remove it. Unlinking does not affect any transfers already in progress.

Troubleshooting common problems

If PayPal rejects your routing or account number, double-check that you entered both correctly. The most common mistake is transposing a digit. If you are certain the numbers are right but PayPal still rejects them, your bank may not be in PayPal's system. This is rare in the United States, but it happens with some smaller regional banks or credit unions. Contact your bank to ask if they support PayPal transfers, or call PayPal support to see if there is an alternative way to link your account.

If the test deposits do not arrive after five business days, your account may have restrictions on incoming transfers. Some banks block transfers from payment services to certain account types. Log into your bank's website or call the bank directly to ask if your account is set up to receive ACH transfers, which is the method PayPal uses. If it is not, you may need to switch to a different account type or bank.

Frequently Asked Questions

Can I link more than one bank account to PayPal?

Yes. You can link multiple bank accounts and choose which one to transfer from each time you move money. This is useful if you have accounts at different banks or want to keep transfers separate for budgeting reasons.

Does PayPal charge a fee to link my bank account?

No. Linking itself is free, and transfers between your bank and PayPal are also free. PayPal makes money from merchants, not from personal transfers between accounts.

What if I enter the wrong routing number and the test deposits go to the wrong bank?

Contact PayPal support right away. They can cancel the deposits and help you start over with the correct information. The deposits are small and designed to be reversible for this reason.

How long does money stay in my PayPal account if I do not transfer it back to my bank?

As long as you want. Money in your PayPal balance does not expire. You can leave it there and use it to pay other PayPal users, or transfer it back to your bank whenever you need it.

Is it safer to keep money in PayPal or in my bank account?

Your bank account is generally safer because it is insured by the FDIC up to $250,000. PayPal balances are not FDIC-insured, so it is best to keep only the money you plan to use soon in PayPal and transfer the rest back to your bank.