The four ways to fund your PayPal account

You can put money into PayPal from a bank account, a debit card, a credit card, or by transferring from another PayPal user. The method you choose affects how fast the money arrives and whether PayPal charges you a fee. Bank transfers are free but take one to three business days. Debit and credit cards fund when ready but may carry a fee. Transfers from another PayPal user land when ready at no cost.

Which method works best depends on what you need the money for and how quickly you need it. If you are sending money to someone else, when ready funding from a card might matter. If you are building a balance to shop online, a free bank transfer is usually the better choice even if it takes longer.

Key Takeaways

  • Bank transfers are free and take one to three business days; debit cards fund when ready but may charge a fee of 1.5% to 2.9%.
  • Credit cards typically charge higher fees than debit cards and are the most expensive way to fund PayPal.
  • You must link a bank account or card to your PayPal account before you can transfer money from it.
  • PayPal holds new bank accounts for up to 21 days while they verify the account is real and belongs to you.

Linking a bank account to PayPal

Before you can transfer money from your bank, you need to connect your account to PayPal. Log into PayPal, go to Wallet, and select Link a Bank Account. Enter your routing number and account number — both appear on the bottom left of a check. PayPal will then make two small deposits to your account, usually within one to two business days.

Once the deposits arrive, you return to PayPal and confirm the two amounts. This verification step proves the account belongs to you. Until you confirm, PayPal will not let you transfer money from that account. The whole process normally takes three to five business days from start to finish.

If you do not have checks or cannot find your routing number, log into your bank's website or app — most banks display both numbers in the account details section. You can also call your bank's customer service line and ask for your routing and account number.

Transferring money from your bank account

Once your bank account is verified, you can move money into PayPal whenever you want. In the Wallet section, select Transfer Money, then choose Add Money to Your Balance. Select your bank account from the list, enter the amount, and confirm. The money will arrive in one to three business days depending on your bank.

PayPal does not charge you for bank transfers, but your bank might charge a fee if you exceed a certain number of transfers per month. Check your bank's rules before you set up automatic transfers. Most banks allow at least four free transfers per month.

Using a debit or credit card to fund PayPal when ready

If you need money in your PayPal account right now, a debit card is faster than a bank transfer. Go to Wallet, select Link a Card, and enter your card number, expiration date, and CVV. PayPal will charge a small amount to your card — usually less than a dollar — and then ask you to confirm that charge. This verification takes a few minutes.

Once your card is linked, you can add money when ready by going to Transfer Money, selecting Add Money to Your Balance, and choosing your card. The money appears in your PayPal account within minutes. However, PayPal charges a fee: 1.5% of the amount for debit cards and 2.9% for credit cards. On a $100 transfer, a debit card costs $1.50 and a credit card costs $2.90.

Credit cards are the most expensive option because PayPal treats them as cash advances. If you have a choice between a debit card and a credit card, use the debit card. If you have a choice between a credit card and a bank transfer, the bank transfer is free — it just takes longer.

Receiving money from another PayPal user

When someone sends you money through PayPal, it lands in your account when ready at no cost to you. The sender may pay a fee depending on how they sent it, but you do not. The money sits in your PayPal balance and you can spend it, transfer it to your bank, or leave it there.

To receive money, you only need a PayPal account. You do not have to link a bank account or card first. Give the sender your email address or phone number associated with your PayPal account, and they can send you money directly. If someone sends money to an email address you have not registered with PayPal yet, PayPal will prompt you to create an account or claim the funds.

Understanding PayPal fees and timing

PayPal's fees change depending on the funding method. Bank transfers are always free. Debit cards cost 1.5% to 2.9% of the amount transferred. Credit cards cost 2.9% or sometimes higher. Transfers from another PayPal user cost nothing. Some business accounts have different fee structures, so check your account type if you are not sure.

Timing also varies. Bank transfers take one to three business days. Card transfers happen within minutes. Transfers from another PayPal user arrive when ready. Weekends and holidays can delay bank transfers by an extra day. If you transfer money on a Friday evening, it may not arrive until Tuesday.

What happens if your bank account verification fails

If PayPal cannot verify your bank account after 21 days, the account link will expire and you will have to start over. This usually happens because the routing or account number was entered incorrectly, or because the account is in a different name than your PayPal account. Check that your PayPal name matches the name on your bank account exactly.

If verification fails, delete the account link and try again with the correct information. If you keep having trouble, contact your bank to confirm your routing and account number, then re-enter them into PayPal. You can also use a debit card instead while you sort out the bank account issue.

Frequently Asked Questions

How long does it take money to show up after I transfer from my bank?

Bank transfers to PayPal take one to three business days. Weekends and holidays do not count as business days, so a transfer started on Friday may not arrive until Tuesday. Some banks process transfers faster than others, so check with your bank if you are in a hurry.

Can I transfer money from a credit card without paying a fee?

No. PayPal charges 2.9% or more when you fund from a credit card. If you want to avoid fees, use a bank transfer (free but slower) or receive money from another PayPal user (free and when ready).

What if I enter the wrong bank account number?

PayPal will not be able to verify the account, and the link will expire after 21 days. Delete the account and add it again with the correct number. If money was already transferred to the wrong account, contact PayPal support — they may be able to recover it, but it depends on whether the account exists.

Do I have to keep a minimum balance in PayPal?

No. You can transfer money in and out whenever you want, and there is no minimum amount you have to keep. You can also leave your balance at zero if you prefer to fund transfers with a card each time.

Can someone send me money if I do not have a bank account linked?

Yes. You do not need a bank account or card linked to receive money from another PayPal user. You only need a PayPal account. Link a bank account later if you want to transfer your balance out to a bank.